License Law | Ohio Association of Realtors

Related Article: New OAR Backed Legislation Limits REALTOR Liability (OR: Sept. 2011)

faqs: License Law: General

Published by OAR’s Legal Services Group
Summary: FAQs: Moving your license to other brokerages or another state; commercial deals.

faqs: License Law: Commissions

Published by OAR’s Legal Services Group
Summary: FAQs: What agents can and can’t do with commissions and rebates.

faqs: License Law: Inducements

Published by OAR’s Legal Services Group
Summary: FAQs: Offering inducements when listing or selling real estate.

faqs: License Law: Licensed Personal Assistants

Published by OAR’s Legal Services Group
Summary: FAQs: What licensed and unlicensed personal assistants can do under the law.

faqs: License Law: Team Advertising

Published by OAR’s Legal Services Group
Summary: Explains how a licensee can advertise being part of a team, group or association when such team, group or association itself is not licensed.

faqs: License Law: Advertising

Published by OAR’s Legal Services Group
Summary: FAQs: How to correctly use your name or a brokerage’s name in advertisements.

License Law: General

1. I am moving to another state. Can I still maintain my Ohio real estate license?

A: Yes. Residency in Ohio is not required to be licensed here.

2. Do real estate agents licensed with my brokerage have to purchase and sell their own property through my company?

A: There is no legal requirement that agents purchase or sell their own property through the broker with whom they are licensed. However, a broker can require this as a condition of working for the brokerage. If a broker wants to impose this requirement upon his agents, it is advised that this be set forth in the independent contractor agreement with the agent and/or in the broker’s policy manual.

3. A salesperson from another brokerage has submitted an application to transfer her license to my company, but it has not been processed yet. Can she go on a listing presentation for my company, if another agent or manager from my company goes with her?

A: No. A salesperson can only act on behalf of a brokerage when the Division of Real Estate has actually issued a license in the name of the new broker. Therefore, the agent should not make listing presentations or do anything on behalf of the new brokerage until her license has actually transferred to that new company.

4. Must a person have a real estate license to sell prefabricated or modular homes?

A: A license is only necessary if real property or an interest therein is being conveyed with the home.

5. Can an Ohio broker hold a real estate sales license in another state?

A: Yes.

6. A home is listed but your buyers are excluded from the listing agreement. Must you deal with the listing broker on this home or can you go directly to the sellers?

A: The best way to handle this situation is to contact the listing agent and notify them that you are working with the excluded buyers. As the listing broker will not earn a commission on this sale the listing agent will probably refer you directly to the sellers.

7. One of my sales agents wants to handle the rental of a duplex his father owns. My brokerage doesn’t do property management. Can he do this on his own?

A: The leasing or managing of real estate for a fee, commission or anything of value, is activity that requires a real estate license. Therefore if the agent is being compensated for leasing or managing this duplex, this activity must be done in the name of his broker. The fact that the property is owned by a relative does not matter.

8. An out-of-state broker knows of a seller who has a house in Ohio to sell and has contacted me about co-listing it with him. Can this be done legally?

A: No. The out-of-state broker cannot co-list or handle the sale of residential property in Ohio unless he has a valid Ohio broker’s license. Instead, he can only refer the seller to you and in return you may pay him a referral fee. Without an Ohio license the broker cannot advertise the property, show it, or negotiate the sale of this property. Such conduct would have to be performed by you as the Ohio broker.

9. An out-of-state commercial REALTOR has a client who is looking for commercial space in Ohio. He wants to represent him on the potential lease or purchase. Can he do this if he’s not licensed in Ohio?

A: Under legislation passed in 2002 Ohio license law was amended to allow a broker licensed in another state to represent a client on an Ohio commercial/industrial transaction as long as several requirements are met. Foremost is the need for both the Ohio broker and the out-of-state broker to enter into a written agreement setting forth the terms under which they will work together. The out-of-state broker must also consent to Ohio jurisdiction for all legal proceedings regarding the transaction.

These documents must be signed before an out-of-state broker may perform any acts that would otherwise require an Ohio license. This would include showing property or engaging in negotiations. The out-of-state broker must also provide a copy of a current certificate of good standing from the state in which he or she is licensed.

Below are the necessary forms:

1. Memo of Cooperative Commercial Transactions in Ohio.
2. A Cooperative Agreement (pdf document) setting forth the terms of cooperation and compensation and a statement that the out-of-state broker and its agents agree to adhere to Ohio law.
3. An Irrevocable Consent to Jurisdiction (pdf document) signed by the out-of-state broker.

10. Can I pay a finder’s fee or give a free month’s rent to tenants who refer other prospective tenants to me?

A: No. Referring a prospect for the lease, purchase or sale of real estate for a fee or anything of value is conduct that requires a real estate license. Therefore, this tenant may not legally accept a finder’s fee or free month’s rent and a licensed agent or broker my not pay an unlicensed person for such conduct.

11. Am I responsible or liable for my agent’s personal real estate transactions if they are not “run” through my brokerage? Does my agent have to provide me with copies of the documents involved in these transactions?

A: If the property is not listed with your brokerage and you are not otherwise involved in the sale, rental or purchase of the property, you and/or your company should not have any liability for these transactions. To avoid any claim that your firm is involved with or responsible for these transactions, you should make sure that your agent is not using purchase contracts, leases, etc., that bear your brokerage name, logo, etc., or reference “broker” any way (i.e. earnest money deposit sections). Further, because these transactions are not being handled by your brokerage, the license law does not require you to maintain copies of the documents involved in these transactions.

12. Are attorneys exempt from the real estate licensing requirements?

A: Ohio Revised Code Section 47235.01 (K) provides that an attorney is exempt from the requirements to be licensed if the conduct he is engaged in is part of the performance of his duties as an attorney. Examples of situations that would fall under the exemption would be an attorney who is selling property that is part of an estate or liquidating property as an asset in a bankruptcy proceeding.

13. Can a brokerage be licensed as a limited liability company?

A: Yes, the Division of Real Estate will issue a broker’s license to a limited liability company. At least one person who is licensed as a broker must be associated with the limited liability company.

14. Can a broker who is a sole proprietor have another broker licensed with the brokerage?

A: No. Only one broker can be licensed with a sole proprietorship brokerage. Another individual with a broker’s license would have to place his broker’s license on deposit and activate their sales license to be licensed with this brokerage. A brokerage licensed as a partnership, association, corporation or limited liability company/partnership can have more than one broker licensed with the brokerage.

15. Can an agent or non-licensed person be an owner of a real estate company?

A: Yes. A corporation or a partnership licensed as a broker must have at least one broker affiliated with it, but it may be owned in whole or in part by licensed agents or non-licensed persons.

16. The broker of a real estate company dies. Who should handle the pending transactions and conclude the business affairs of the company?

A: An ancillary trustee can be appointed to conclude the business affairs of the broker. The Division of Real Estate will recommend an individual to act as ancillary trustee which is subject to approval of the probate court. The ancillary trustee duties are limited to winding up the affairs of the brokerage; no new business can be initiated. The forms needed to have an ancillary trustee appointed can be obtained from the Division of Real Estate.

17. A broker who is retiring at the end of the year has a $500 earnest money deposit in his trust account from a transaction which failed to close six years ago. What should be done with the $500?

A: When the parties to a real estate transaction can not agree on who gets the earnest money the courts have to resolve the issue. The broker should file an interpleader action with the local small claims court. In this action, the broker is the plaintiff and the buyer and seller are the defendants. The court will determine who is entitled to the earnest money and will order disbursement accordingly.

18. Is it unethical or illegal for one broker to solicit the salespersons of another broker?

A: No. While at one time this was a violation of the NAR Code of Ethics, it has not been part of the Code for several years, and was never a violation of the license law.

19. Is there any limitation on the number of continuing education hours a licensee can take dealing with computer training?

A: Yes. Ohio Administrative Code Section 1301:5-7-02 limits the number of continuing education hours devoted to computer training to no more than a total of fifteen hours during each three-year reporting period. Of these fifteen hours, no more than six hours can be on basic instruction or computer training.

20. I am holding an open house and a buyer shows up who is interested in writing an offer. Must I ask the buyer if he is working with another agent?

A: The issue is addressed by both the license law and the REALTOR Code of Ethics. The license law provides that a licensee is not required to ask buyers if they are working with another agent unless there is reasonable cause to believe the buyer may be represented by another licensee. In that case, a licensee would be required to inquire as to the nature of the relationship.

However, NAR’s Standard of Practice provides that REALTORS must ask prospects if they are a party to an exclusive representation agreement before providing any substantive services. This would include writing an offer. Thus, under the REALTOR Code of Ethics, you must ask the buyer this question before writing an offer.

21. A buyer wants to write an offer on my listing. The buyer has told me he has seen properties with other agents but has said that he did not sign a buyer representation agreement. Must I get confirmation of this before I write the offer for the buyer?

A: No. If a buyer represents that he is not currently subject to a written exclusive agency agreement with another licensee Ohio Administrative Code Section 1301:5-6-09 provides that no further inquiry is required and you may write the offer for the buyer. However, if the buyer had said that he is not sure whether he had entered into such a relationship, no negotiations can take place until such time as it can be verified he is not subject to an exclusive agreement with another licensee.

22. I wrote a contract for a buyer client that is scheduled to close next week. I just found out my client has an outstanding exclusive agency agreement with another licensee. When the buyer first came to me I asked if he had entered into an exclusive agency agreement with another licensee and he said no. Did I violate Ohio license law?

A: It is a license law violation for a licensee to negotiate the sale of real estate with a buyer knowing the buyer has entered into a written, exclusive buyer agency agreement with another licensee. To violate license law the licensee had to knowingly negotiate with a buyer exclusively represented. In this case, you did not know of the representation as the buyer stated he had not entered into an exclusive buyer agency agreement.

License Law: Commissions

1: Can a seller or a listing broker offer to pay a bonus to any agent who sells the property?

A: Salespersons can only collect compensation in the name of the broker with whom they are licensed. Therefore, any bonus has to be paid to the selling agent’s broker. It is then up to the broker to pay their sales agent.

2: Can I rebate part of my commission to the buyer or seller, or is that splitting a fee with an unlicensed person?

A: Although Ohio license law does prohibit splitting commission or paying fees to an unlicensed person, the Ohio Division of Real Estate and Professional Licensing does not consider the rebating of a commission to a party of the transaction to constitute such an illegal payment. This is because the buyer or seller was not engaging in conduct that requires a real estate license. Therefore, such a rebate would be permissible. It should be noted that if this rebate were offered to induce the buyer or seller to enter into a purchase contract, Ohio license law would require that this rebate be disclosed in the purchase contract.

License Law: Inducements

1: Can I offer buyers a coupon for a free carpet cleaning or some other type of incentive if they purchase a home through my brokerage?

A: Inducements such as these can be offered if the item being given is recited in the purchase contract as part of the consideration. Be careful when advertising such inducements to make sure that any restrictions or qualifications on participation are clearly stated.

2: Can I give an incentive to buyers to purchase property through my company?

A: Yes. However, this would be considered an inducement under Ohio license law. As such, it would have to be recited in the purchase contract as part of the consideration.

3: Are inducements that are given to get people to list or attend an open house regulated under Ohio laws?

A: No. Although these “give-aways” may be inducements, they are not prohibited and do not have to be disclosed in the purchase contract. This is because the license law only covers inducements that are given to a buyer or seller to induce them to enter into a purchase contract. It does not cover inducements that are given to entice someone to attend an open house or to list his property. Thus, items that are given for this purpose are not illegal and are not required to be recited in the purchase contract.

4: Is it an inducement if I reduce my commission to get the seller to accept an offer?

A: Yes. When you agree to reduce your commission you are giving the seller something of value. If this is done to get the seller to enter into a contract, then it must be disclosed in the contract to be “legal” under Ohio’s license law.

5: Can I rebate part of my commission to a buyer or seller, or give them any other type of inducement?

A: Yes. Ohio license law permits a licensee to give an inducement to a buyer or seller if it is disclosed in the purchase contract as part of the consideration.

License Law: Licensed Personal Assistants

1: Can I use an unlicensed person to serve as a host or hostess at an open house?

A: A real estate license is required of anyone who assists in the procuring of prospects for the sale of real estate. Because the purpose of an open house is to capture prospects to buy the house, generally only licensed persons should represent the brokerage at an open house. An unlicensed person may be present only to greet persons and may not answer any questions or provide any information.

2: Can an unlicensed person solicit business for the brokerage by providing information on the brokerage and brokerage services to potential clients and customers?

A: No, this activity requires a real estate license.

3: Licensed personal assistants: What can they do?

A: A personal assistant who is licensed as a salesperson is legally permitted to do all of those things that any licensed agent does. This would include showing homes, going on listing presentations, preparing or explaining terms of an offer to purchase or lease, soliciting listings or buyers during telemarketing or “cold calling”, etc. Any of these duties, however, may be limited by the brokerage or agent that hires the assistant.

4: Unlicensed personal assistants: What can they do?

A: Personal assistants who are not licensed may perform duties that would be considered secretarial or administrative in nature. According to the Division of Real Estate these could include:

Sitting silently in open houses as a security measure
Calling other brokerage firms to set showing appointments for the agent
Calling owners of properties listed with the agent’s own brokerage, to schedule showings, closings and inspections
Acting as a courier for contracts and other documents

5: Unlicensed personal assistants: What can’t they do?

A: According to the Division of Real Estate, unlicensed personal assistants are prohibited from doing the following:

Providing potential clients with information on the services offered by the brokerage firm
Calling “for sale by owners” and owners of expired listings to determine their housing needs or interest in re-listing
Explaining terms of home warranty programs, which may be part of a purchase offer
Responding to questions posed concerning contracts or other documents
Giving out pre-printed property information over the phone, including asking price, address and number of bedrooms
Passing out information sheets, verbally providing property information and responding to questions at open houses
Calling property owners to gather information on their home or the type of home they’re looking for, providing information on listed properties and requesting names of other potential sellers or buyers.

License Law: Team Advertising

1301:5-1-21 Team Advertising

(A) Any licensee that advertises as being part of a team, group or association when such team, group or association itself is not licensed pursuant to Chapter 4735 shall:

1. Include in the advertisement the full name of a licensee that is a member of such team, group or association. The licensee is not required to include in the advertisement the names of every member of the team, group or association;

2. Include in the advertisement the name of the broker or brokerage under whom the licensee is licensed;

3. Identify as non-licensed any unlicensed team, group or association members whose name is included in such advertising;

4. Display the name of the broker or brokerage in equal prominence with the team, group or association name;

5. Display the name of the broker in equal prominence with the name of the salesperson in the advertisement.

(B) Provided the requirements of division (A) are met, photographs of team, group or association members may be included in the advertisement without disclosure of the names of all of the members in the photograph;

(C) Failure to advertise as provided herein shall be prima facie evidence of a violation of division (A)(21) of section 4735.18 of the Revised Code.

License Law: Advertising

1: If my agent is selling or leasing her own property, does she have to include the brokerage name in any advertisements?

A: The name of the brokerage should only be included in the ad if the property is listed with the agent’s broker. If it is not being offered through the brokerage, only the agent’s name should appear. In that case the agent must be sure to identify herself as a licensed agent. An example of proper identification would be “Mary Jones, owner/ real estate agent.”

2: Does the brokerage firm name have to appear in advertisements along with the salesperson’s name?

A: Yes. Ohio Revised Code Section 4735.16 provides that the brokerage firm name must appear in all advertisements.

3: I am a sole proprietor, but I would like to do business in a name other than my personal name. Is there a way I can do this?

A: Yes. You may apply to the Ohio Division of Real Estate for permission to do business under a trade name or “dba” (“doing business as”). If approved, that would be the sole identifying name to be used by you in all advertisements. Such a trade name should also be registered as a fictitious name with the Ohio Secretary of State’s office.

4: My brokerage is licensed as a corporation and my corporate name includes the abbreviation “Inc.”. Does this have to appear in my ads since it is part of my licensed name? Do I have to apply for a “dba” if I want to drop it in my ads?

A: Ohio Administrative Rule 1301: 5-1-02 provides that words or abbreviations appearing on a broker’s license to indicate the legal framework under which he conducts business, such as “Inc.” or “Co.” are not required to appear in advertising. Therefore, it is not necessary to obtain a “dba” to drop the “Inc.” in your ads.

5: I am licensed as a sole proprietor. Can I add the words Realty, REALTOR or Real Estate to my name without applying for a “dba”?

A: Yes. Ohio Administrative Rule 1301: 5-1-02 clearly provides that these terms, although not a part of your name as it appears on your license, can be used by brokers in advertising without applying for a trade name. Therefore, if your name is John Doe, you can advertise as either John Doe Realty, John Doe, REALTOR or John Doe Real Estate.

6: Can a salesperson’s name be larger than the broker’s name in print advertisements?

A: No. Ohio Revised Code Section 4735.16(B) provides that the broker’s name must be displayed in equal prominence with the name of the salesperson in such advertisements. Therefore, the agent’s name should not be larger or more prominent than the broker’s.

7: I am currently licensed as a salesperson, but I have a broker’s license on deposit. Can I put “Broker” on my business cards?

A: No. Because you are not actually licensed as a broker you may not put this on your business card. You may put “broker on deposit” if you wish, as that is an accurate statement.

8: An agent is contemplating a new promotional plan in which the agent will send a letter to past clients and customers asking them to provide the name of someone who wants to sell or buy. The client/customer would receive a gift certificate to a restaurant for providing the name. Does real estate license law prohibit this promotional plan?

A: Yes. The clients/customers would be assisting in the procuring of prospects for a real estate transaction which requires a license. Thus a licensee is prohibited from compensating a non-licensee for this activity.

9: Does my brokerage name have to appear on promotional brochures, newsletters, etc. that my agent distributes marketing him/ herself?

A: Yes. Ohio Revised Code Section 4735.16 (B) requires that the name of the broker with whom an agent is licensed must appear in any advertisement of the agent.

10: Can the salesperson put the broker’s name on the back cover of a personal brochure but put their own name and picture on the front?

A: No. The Division of Real Estate does not consider this to constitute displaying the broker’s name in equal prominence with that of the agent.

11: I recall there being some sort of rule about “double dipping” when advertising your sales volume. (i.e. claims to have $3 million in sales in 1994). What is this rule?

A: This refers to an opinion from the Ohio Real Estate Commission issued in the mid 1980′s. According to this opinion, when advertising one’s sales volume, you cannot count the sales price of an in-house transaction twice. Thus, if you listed and sold a $100,000 home, you could only claim $100,000 when figuring your sales volume. This rule does allow you to claim $100,000 in sales when you are the listing broker/agent on a co-op transaction; it also allows the selling brokerage to claim $100,000 in a co-op transaction listed by another firm.

12: Does the “double dipping” rule apply to private sales awards programs of the Ohio Association, my local board of REALTORS, my brokerage or a franchise?

A: No. It only applies to advertisements quoting a dollar volume (i.e. $500,000 sold in first quarter of 1995) not to private awards.

13: When I advertise that I have received a sales award from my Local Board or OAR, do I have to indicate the year(s) in which I received the award?

A: The rules governing OAR’s President Sales Club require that you must indicate the year or range of years in which this award was achieved. Your Local Board of REALTORS should be contacted regarding any rules it has governing the advertisement of the awards they bestow. However, even absent such a requirement by your Local Board, the general provisions in the license law against misleading advertisements would probably be interpreted to require that you indicate the year(s).

14: I want to run an ad that compares the sales volume of my brokerage to those of other brokerages in the area. Are there any restrictions on this type of advertising?

A: Both the license law and the Code of Ethics contain sections that prohibit false or misleading advertisements. Therefore, the first and most obvious requirement for this type of ad is that it must be accurate. This means that if challenged by your competitors (as it most likely will be), you must be able to substantiate your claims or figures.

Secondly, if you are basing your comparative advertising in whole or in part on information provided by your Local Board of REALTORS or an MLS to which you belong, the MLS rules probably require that you indicate in the ad the period of time over which your claims are based. These rules most likely also require you to include in your ad a statement similar to the following: “Based on the information from the Board/ Association of REALTORS (or MLS) for the period (date) through (date).” Therefore, you should check the rules of the MLS to which you belong if you are utilizing “sold” comparable or statistical reports or the MLS of Board’s as the basis for the claims made in your ad. Finally, if you are utilizing actual sales volume figures, the Ohio Real Estate Commission’s rule on double dipping must be followed.

15: What are the requirements for personal brochures my agent is sending to all homeowners in a subdivision?

A: Ohio Revised Code Section 4735.16 (B) requires that the name of the broker with whom an agent is licensed must appear in any advertisement of the agent. This section also provides that the broker’s name must be displayed in equal prominence with that of the agent. In determining prominence, type size, style, color and placement will be considered.

16: I am a broker and have just listed a home that my wife owns. Am I required to put “owner” on my yard sign since I will have to sign the deed to release my dower rights?

A: No. As you are not the title holder your yard sign should not include “owner.”

17: Does the Division of Real Estate consider advertising on the Internet to be advertising that must comply with the license law advertising requirements?

A: Yes. All license law advertising requirements apply to a broker’s ads on the Internet.

18: A brokerage has a web site. Where is the brokerage name required on that site?

A: License law requires the brokerage name be included on every “page” of the web site. A page is defined as one that may or may not scroll beyond the borders of the screen.

19: The brokerage name is on every page of my agent’s web site. Can the agent’s name be more prominent than that of the brokerage?

A: No. Ohio license law prohibits an agent’s name from being more prominent than that of a broker in any type of advertising. This requirement applies to the Internet as well as to yard signs, newspaper ads, fliers, etc.

20: On my web site I have a section that includes my listings. Depending on the number of listings, the user may have to “scroll” down the page several times. Does my brokerage name need to be on the screen as you scroll?

A: No. The provisions of the rule defines a web page as one that may scroll beyond the borders of the screen. Therefore, it is sufficient to have the broker or brokerage name at the beginning of the page where you start displaying your listings, even though as you scroll down the page the broker’s name goes off the screen.

21: My brokerage name is displayed on a banner at the top of my web site so that it appears at all times. However, if someone prints out information about listings on my site, that banner is not included on the print out. Is that okay?

A: Yes. The Division has indicated that you will be considered in compliance with the advertising rule even though the brokerage name does not appear on “print outs.”

22: My web site includes links to the local Chamber of Commerce, a restaurant guide, area maps, etc. Do these pages need to include the brokerage name?

A: No. This requirement only applies to those pages of your web site that involve the advertising of real estate services, such as listings of properties or agent profile pages. It would not apply to the links you have described since they do not involve real estate services.

23: How often must outdated or expired information be updated on my web site?

A: License law requires that outdated or expired information be updated within 14 days.

24: What happens if the company I use to maintain my web site doesn’t delete or update the information within 14 days?

A: License law clearly states that if you use a third party to maintain your site, it is your responsibility to notify that company in a timely manner so that the 14 day time frame can be met. It also requires you to notify this third party company in writing of such changes–either by mail, fax or electronic means. As long as you can show that you provided timely written notice to your third party company you will not be in violation of this rule, even if the webmaster failed to effect the change within 14 days. The key is to make sure you don’t wait until the 11th or 12th day to notify your webmaster of necessary changes. Instead, do it right away, do it in writing and keep a copy of that dated notification.

25: License law requires licensees to indicate on their web site the date on which the information was last updated. Does this mean I need to include a “last updated” field for every piece of information on my web site, or can I just include a general statement that it is updated daily or weekly?

A: The rule does not go so far as to require a “change” date for each piece of information. Instead, you only need one place to indicate the date on which any information included on the site was changed. However, a general statement that the site is updated daily, weekly, etc. is not sufficient, according to the Division. Instead, the actual date a change was made must be indicated.

26: Can I advertise property listed with another brokerage?

A: Yes. License law provides that to advertise property not listed with your brokerage that you have the written consent of the owner or the owner’s authorized agent and that the advertisement includes the listing broker’s name.

27: Can I advertise FSBO property?

A: To advertise FSBO property you would need the owner’s written consent to the advertising and include in the ad that it is FSBO or unlisted.

28: I want to send out a newsletter to the area I “farm” that includes a list of properties that are currently on the market in that neighborhood. I have some of those properties listed, but several are listed with other brokers. Am I required to obtain consent from the other listing brokers for this type of marketing piece?

A: Yes. In order to advertise another broker’s listings you must first obtain written consent from the “owner” or the “owner’s authorized agent.” On property that is exclusively listed with another broker, the listing broker or agent would be considered the owner’s authorized agent. Therefore you would need written consent from the listing broker or agent to include their listings in your newsletter. Moreover, if consent is given, you must also inlcude the listing broker’s name in the newsletter.

29: Can the consent be obtained from the listing agent, or does it have to come from the agent’s broker?

A: The rule states that you must have the consent of the owner or his “authorized agent.” That could be either the listing broker or the listing agent.

30: Does the rule specify the manner in which I must display the name of the listing broker?

A: Yes. You must use a type size that is the same as, or larger than, the type size used to describe the property.

31: Could I go around the listing broker and agent and get consent from the owner directly?

A: While license law would not prohibit this, the REALTOR Code of Ethics provides that REALTORS cannot take any action that is inconsistent with the exclusive agency relationship another REALTOR has with his/her client. Standard of Practice 16-13 further clarifies that “all dealings” concerning a property that is exclusively listed must be carried on with the client’s agent or broker. Therefore, your ethical obligations as a REALTOR would preclude you from contacting the owner rather than the listing agent or broker.

32: If my buyer requests that I send him a list of the 4-bedroom properties available in the area, do I have to include the listing broker’s name on the properties my brokerage does not have listed?

A: No. Providing the requested information to your buyer would not be considered advertising. Ohio Administrative Rule 1301:5-1-02 (I) provides that the term advertising does not include a private communication between a licensee and a client, customer or prospective client provided the communication is initiated at the request of the client, customer or prospective client.

33: Must a brokerage’s telephone number appear on all signs and ads?

A: While the license law does require a broker’s name to appear in any ad, including yard signs, it does not require that their phone number be included. Therefore, a salesperson’s direct line or home phone could be the only telephone number that appears if the broker chooses to allow this. Licensees should be cautioned, however, that their home could be viewed as a branch office–and thus need to be licensed–if calls are exclusively directed there.

34: Can I use a telemarketing firm to do “cold calling” or to canvas an area for prospects/listings?

A: A real estate license is required of anyone who assists or directs in the procuring of prospects for the sale of real estate. Whether unlicensed telemarketers can be used depends upon the content of their presentation. There is a very fine line where a telemarketer’s conduct can cross over into activity that requires a license. Therefore the Division has taken the position that the inquiry should be limited to scheduling an appointment for a licensed agent or broker to meet with the prospect. The telemarketer should definitely NOT solicit information regarding a prospect’s home buying or home selling needs, provide information regarding any properties that are on the market, discuss brokerage services or commission rates, etc.

35: Three of my agents have formed a team called The Smith Team. Can they advertise in just the team name or do they need to include their individual names, along with the team name in the ad?

A: At least one agent’s name must appear in the ad with the team name. It is not necessary to include the names of the other two agents in the team.

36: I have a team of three agents. I use my full name in the team name (The Jane Smith Group). Does this meet the license law requirement of having at least one licensee’s name in team advertising?

A: Yes. As the team name includes the full name of a licensee as it appears on her license the requirement is met.

37: Must team advertising include the name of the brokerage the team members are licensed with?

A: Yes. License law requires the brokerage name in all team advertising.

38: Can the team name be more prominent than the brokerage name?

A: No. Neither the team name nor the name of the licensee(s) affiliated with that team can be more prominent than the brokerage name.

39: Must an unlicensed team member be indentified as unlicensed if their name is included in the advertising?