COLUMBUS, Ohio - In response to multiple complaints made by the licensed real estate community to the Ohio Department of Commerce Division of Real Estate and Professional Licensing (REPL), the division is issuing a reminder to licensees and consumers about Ohio law as it pertains to out-of-state real estate brokers.

Generally speaking, real estate professionals must be licensed in the state of Ohio in order to do business. The Division reminds consumers that working with an unlicensed or unauthorized real estate broker or agent can result in litigation, time and money loss, and puts the real estate transaction in question at risk. However, under very limited conditions, unlicensed brokers or salespeople are able to practice real estate in the state, per Ohio Revised Code Section 4735.022.

Specifically, an unlicensed broker or salesperson may only practice without a license if it's related to the sale or purchase of a commercial property, which is defined as real estate except those that contain one to four residential units, even when those units are a part of a larger building or parcel of real estate. Commercial property does not include residential vacant land or single-family residential units such as condominiums, townhouses, manufactured homes or homes located in a subdivision when sold, leased, or otherwise conveyed on a unit-by-unit basis.

In order to practice in Ohio, out-of-state real estate brokers must take the following steps. First, they must enter into a commercial co-broke agreement with an actively licensed Ohio broker. The agent must then submit a Certificate of Good Standing from their licensing jurisdiction to the Ohio broker and list the Ohio broker on all advertisements. Additionally, all escrow funds must be held in the Ohio broker's trust account. The Ohio broker is responsible for retaining copies of all transactional records, including the co-broke agreement for a period of three years.

"Out-of-state commercial brokers who operate outside of these conditions are violating Ohio real estate license law and risk civil penalties for unlicensed activity," said REPL Superintendent Daphne Hawk. "Consumers are reminded to check the license of an agent they are considering working with and always ask questions."

Consumers are encouraged to verify they are working with a broker or agent that is authorized to operate in Ohio. The Division's license lookup tool will confirm the status of agents who are licensed in Ohio. For out-of-state commercial brokers and agents, consumers are encouraged to ask them questions, obtain information about the Ohio broker, and reach out to the Division to confirm.

License Portability Reminder

In December 2023, Ohio streamlined the licensing process for out-of-state real estate professionals interested in working with non-commercial properties. Various pathways are available for these agents to obtain licensure. Additional information is available here.

The Division of Real Estate & Professional Licensing is part of the Ohio Department of Commerce, Ohio's chief regulatory agency. The Department is focused on promoting prosperity and protecting what matters most to Ohioans. We ensure businesses follow the laws that help them create jobs and keep Ohioans safe. To learn more about what we do, visit our website at com.ohio.gov.