Real Estate Commission Issues License Revocations
Blog
November 15, 2018 | Kristin Rosan, Madison & Rosan, LLP | Hondros College Contributor
To avoid a license revocation, a licensee must:
- Seek a purchase offer at a price and terms acceptable to the client
- Present any purchase offers to the client in a timely manner
- Provide the seller with a copy of the agency disclosure statement
In its Fall of 2018 Newsletter, the Ohio Real Estate Commission disclosed three cases where it issued license revocations to two brokers and one salesperson. Licensees that are subject to a disciplinary revocation are prohibited from further practices as a real estate salesperson or broker in Ohio.
The first case involved a broker from Euclid, Ohio, who had her license revoked for providing a lockbox code to persons that subsequently gained unauthorized access to a property. Additionally, the Commission found that the broker acted unethically and/or committed misconduct when she made false or misleading statements to the Division’s investigator during the investigation. Last, the broker failed to either retain copies of transaction documents or provide copies of the documents to the Division’s investigator. The Division referenced the Canons of Ethics for the Real Estate Industry in all three charges against the broker, specifically Section I, Article 1 and Section I, Article 3. The former requires licensees to endeavor to maintain and establish high standards of professional conduct and integrity and the latter requires licensees to provide assistance whenever possible to the members and staff of the Real Estate Commission.
The second case involved a broker from Sandusky, Ohio, who had his license revoked for failing to timely provide an offer to his seller client. Additionally, the broker subsequently failed to provide a revised offer to his seller client for the same transaction. Alternatively, the Commission found that the broker failed to maintain records showing he timely provided the offers to his client. Among others, the broker was charged with a violation of R.C. 4735.63, which provides in representing a seller, a licensee must
- Seek a purchase offer at a price and terms acceptable to the client
- Present any purchase offers to the client in a timely manner
- Provide the seller with a copy of the agency disclosure statement
The final case involved a salesperson from Toledo, Ohio, who had her license revoked for conduct relating to transactions for several different properties over the course of several years. The Commission found that despite her not representing either a buyer or seller in a transaction, she provided the lockbox code for a property to a home inspector, who subsequently gained entry to a property without the owner’s knowledge or consent. The Commission found in four separate transactions she failed to assure earnest money was deposited in accordance with the instructions in the purchase contract. Finally, the commission found she altered a purchase contract without obtaining the initials of the parties approving the change. Among others, all six charges against the salesperson included violations for misconduct and Canons of Ethics Section I, Article 1.
Although thinking about the Commission’s disciplinary process is unpleasant, it provides a meaningful application of license law to specific fact patterns. Reviewing the actions of others can be an important tool in identifying areas of your practice where improvements may be warranted or necessary.