Real Estate and Professional Licensing

Summer 2004

N E W S L E T T E R

Bob TaftGOVERNOR

Lt. Governor Jennette BradleyDIRECTOR

Anne Moorhead PetitSUPERINTENDENT

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Division of

RESPA - Title Companies and Commissions�

The issue of who may choose the title company andthe payment of commissions directly from the title companyhas become the subject of much debate in the real estateindustry. Understanding the provisions of RESPA, the RealEstate Settlement Procedures Act, further complicate theissue. Initially, real estate professionals should understandwhat RESPA prohibits and what it allows.

RESPA prohibits:· A seller from requiring a buyer to purchase title

insurance from a particular title insurance company.· A real estate professional from paying or receiving

anything of value for the referral of settlementservices.

RESPA allows:· A seller to choose which title insurance will be utilized

when the seller is purchasing the title insurance.· A real estate professional to receive a return on the

ownership interest in a settlement service provider,provided the professional discloses such arrangementand does not require the use of the provider ofsettlement services.

It is common in some areas of Ohio for a seller tooffer owner’s title insurance as part of the purchase contractnegotiations. Some buyers find this added security a valuablebonus when contemplating the purchase of a new home. It isacceptable industry standard for a seller to choose the titlecompany, if the seller is paying for the owner’s title insurancepolicy. Conversely, if the buyer is purchasing the owner’stitle insurance policy, typically the buyer chooses the titleinsurance company. Neither of these scenarios presents aRESPA violation. The RESPA violation occurs when the sellerrequires the buyer to purchase title insurance from a sellerchosen title insurance company.

Real estate license law does not prohibit licenseesfrom owning or having an interest in title companies orsettlement service providers. Furthermore, provided the otherRESPA requirements are met, licensees may receivecompensation for their interest in the affiliated business.Licensees should insure that referrals to an affiliated businessdo not result in conduct that breaches the fiduciary dutieslicensees owe to their clients. An example of a potential breachwould be when a licensee encourages a client to utilize aparticular title insurance company, which happens to be anaffiliated business, when it may be in the client’s best interestto utilize a different company.

Real estate license law also prohibits salespeople fromreceiving commissions, fees or other compensation to whichthey may be legally entitled directly from the title companyor settlement service provider. The law is very clear:salespeople may only receive commissions, fees or othercompensation through their affiliated broker. Checks mayonly be made payable to the broker, and cannot be madejointly payable to a real estate salesperson and broker.Brokers may not exclude themselves from these requirementsby executing a contract or trust agreement, thereby directingpayment from the title company or settlement service providerdirectly to the salesperson.

Real estate professionals themselves are the bestenforcement against illegal activity. Such activity can beharmful to consumers and brings disrepute to the entireindustry. Professionals are encouraged to report violationsof license law to the Division of Real Estate’s enforcementsection. Complaint information is available on the Division’swebsite at www.com.state.oh.us/real. Violations of RESPAshould be reported to the Director of the Office of RESPAand Interstate Land Sales, HUD, Room 9154, 451 7th Street,SW, Washington, DC 20410.

More information on RESPA can be obtained throughthe HUD website at www.hud.gov. The Ohio Departmentof Insurance website at www.ohioinsurance.gov has moreinformation on owner’s title insurance policies, their benefitsand their risks.

The Division has started to utilize enforcementmeasures to obtain licensee response to Divisionrequests. Examples include broker failure to cure auditdeficiencies, failure to remedy a bounced check orfailure to return a license after notice of a suspension.Superintendent Petit said, “It is never my preferenceto initiate discipline against a licensee and theconsequences of refusing to comply with Divisionrequests for information can be severe. It is importantfor our licensees to understand the gravity of suchcases.” Although a last resort, enforcement measureswill prove to be a costly proposition for licensees,possibly resulting in civil penalties, additional education,license suspension or revocation.

Licensees Must Respond toDivision Requests

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The Division of Real Estate andProfessional Licensing Newsletter is

published quarterly by The OhioDepartment of Commerce, Division

of Real Estate and ProfessionalLicensing.

77 South High Street20th Floor

Columbus, Ohio 43215-6133

Columbus OfficeVoice (614) 466-4100FAX (614) 644-0584

TTY/TDD: 1-800-750-0750

Cleveland OfficeVoice (216) 787-3100FAX (216) 787-4449

Commission MembersOwen V. Hall, President

Cheryl A. ChurchillJohn P. KennedyDale W. MarksLois L. Yeager

Appraiser Board MembersMargaret A. Hambleton, Chairperson

Lawrence A. KellRobert J. WeilerCheryl H. Love

ATTENTION BROKERS! Ohio Rules and Regulations updates are available at www.state.oh.us/ohio/ohiolaws.htm

Meet the Staff: Appraisal and Cemetery Section

Welcome to the Appraiser and Cemetery Section located in theDivision of Real Estate & Professional Licensing’s Cleveland office.Sylvia Keberle administers the Appraisal and Cemetery Programs andmanages the staff for both the Appraisal and Cemetery Sections.

The Appraiser Licensing/Certification Section consists of DianeBurke and Rochelle Stage. They process all appraiser applications forinitial Appraiser Licensing/Certification, Reciprocal and TemporaryAppraiser Practice Permits as well as update appraiser continuingeducation and process appraiser renewals. Once the appraiser’s continuingeducation data is entered into the Division’s database an appraiseridentification card is issued.

The Appraiser Enforcement Section includes Adam Tonti,Appraiser Investigator Supervisor, who reviews complaints filed againstappraisers and supervises the appraiser investigation staff. Barbara Johnson,Appraiser Enforcement Secretary and Appraiser Investigators, Jim Hlad,Danitra Kourkounakis and Ken Seaman make up our AppraiserEnforcement staff. Barbara is responsible for the Appraiser Board’smeeting agendas and prepares and maintains all the Division appraiserenforcement records.

The investigation staff performs investigations of complaints filedagainst licensed and certified appraisers and answers appraiser licensing

and certification questions. Once acomplaint is submitted, it is assigned toan investigator. The investigator reviewsthe allegations, interviews thecomplainant, appraiser and other partiesthat may have information for theinvestigation and then submits a reportthat is reviewed by the Legal Section toeither issue a charge letter for violationof Ohio Revised Code and/or theUniform Standards of ProfessionalAppraisal Practice or recommends thecase be closed without taking furtheraction. Those recommendations thenproceed to the Superintendent for finaldetermination.

The Cemetery Program is supported by one investigator, Ted Hornyak.Ted processes cemetery registrations and investigates complaints filed againstcemeteries. He presents these complaints and proposes resolution to the OhioCemetery Dispute Resolution Commission. The cases involve sales, managementand maintenance issues as well as matters pertaining to statutorily requiredEndowment Trusts and Pre-need Merchandise and Service Trust Funds.

Advertising Discipline Action

ADRIENNE ABBOTT, sales agent, Cincinnati, Ohio, was issued an advertisingcitation, in the amount of $600.00, for violation of Sections 4735.16 and 4735.18(A)(21) of the Ohio Revised Code. Ms. Abbott failed to identify her licensedbrokerage’s name on her business website, advertised an individual as a licensedsalesperson when, in fact, the individual was not licensed and used a businessname that was not licensed as a brokerage.

Cleveland Office - Front row (left to right):Diane Burke, Ted Hornyak, Barbara Johnsonand Sylvia Keberle. Back row (left to right):Adam Tonti, Jim Hlad and Rochelle Stage.

Columbus Office - From left to right: KenSeaman and Danitra Kourkounakis

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A Brief Review of Appraiser Compliance with the Ohio Revised CodeWhen a written complaint is

filed with the Division of Real Estate& Professional Licensing andjurisdiction is confirmed, the process ofan investigation is initiated. The Divisionprepares and sends notice letters of thecomplaint to both parties which statethat an investigation has begun. Theprocess of the investigation is explainedin this letter with a request that alldocuments regarding the appraisal inquestion be sent to the Division for itsreview. A second letter is prepared andsent by the Division to both partiesinforming them of the investigatorassigned to the investigation with anadditional request for essentialdocuments.

Failure of the licensees,certificate holders or registrants tocomply with the request for documentscauses delays in the investigativeprocess. It is also a violation of therequired attestation signed by anappraiser licensee as a part of the Stateapplication. Due to a substantialincrease of appraisal complaints, failureto provide the requested documents incomplaint cases already assigned forinvestigation has caused the Division

to increase the use of its subpoenapower in order to obtain requesteddocuments.

R.C. 4763.04 states that thecourt of common pleas, upon requestof the superintendent or board, “maymake an order awarding process ofsubpoena or subpoena duces tecum forthe person to appear and testify beforethe board or the superintendent, andmay order any person to give testimonyand answer questions, and to producebooks, records, or papers, as requiredby the board or the superintendent”.Further, in the same section of the codeit explains that any person who fails toobey the subpoena can be held incontempt by the court for disobedience.

R.C. 4763.14 speaks of theretention of contracts, reports, data andfurnishing those documents forinspection. It also requires thatcertificate holders, registrants, andlicensees shall make available allrecords required to be maintained underthis section for inspection and copyingby the superintendent of real estate orthe real estate appraisal board, or both,upon reasonable notice. This isaccomplished by the Division in its initial

letter of the complaint notice that is sentto the respondent in a complaintrequesting “documents” pertaining tothe appraisal complaint.

The term “documents”includes, but is not limited to, letters,correspondence, drafts, negotiableinstruments, memoranda, reports,records, summaries, notes, lists,publications, and any and all otherwritings, whether on paper, film, tape,or electronic media, and includes anywritten record made of any oral orelectronic communication. Failure tofurnish “documents” requested by theDivision is a violation of the R.C. chapter4763.04 that can result in disciplinaryaction including license, certificate orregistration suspension or revocation.

Beginning on July 1, 2004, the Division implemented a new auditing program forreal estate education courses in order to ensure the quality of approved educationfor the industry. Real Estate Investigators will conduct audits of real estatecontinuing education courses (CE) on a monthly basis, courses will be selectedon a random basis or upon the Superintendent’s request. The purpose of theaudit is twofold: first, to provide assistance to instructors to ensure CE coursesare compliant to license law; and second, to improve the quality of courses forthe real estate industry. The investigator will normally arrive the day of the CEclass to notify the instructor that an audit will be conducted. During the audit, theinvestigator will use a checklist (a copy of which is posted on our websitewww.com.state.oh.us/real) to evaluate compliance in a variety of areas includingclass administration, course content and flow, instructor presentation, teachingaids, and command of the subject matter. If the investigator finds areas ofdeficiencies, the Division will work with the instructor and provider to makenecessary corrections. If the deficiencies are not corrected within a prescribedtime, the Superintendent may withdraw approval for the real estate continuingeducation course.

By auditing real estate education courses, the Division will provide a valuableassessment tool that course providers and instructors may use to improve qualityof instruction and ensure the real estate industry is provided with accurateinformation.

Auditing CE Courses: A New Division Procedure

ATTENTION BROKERS! Forms are available for download from the Division’s Web site at www.com. state.oh.us/real

This fall, the Division of RealEstate & Professional Licensing willpilot a Consumer Home Buying/Sellingeducation forum with the Real EstateIndustry in Portage, Stark, Trumbull,Mahoning and Summit counties. Thiswill be the first in a series of statewidereal estate education updates designedto introduce Ohio consumers to thewide spectrum of educationalinformation on the home buying/sellingprocess.

This pilot event will offerinformation on the appraisal, propertycondition disclosure form, agencydisclosure, and tips on how to avoid theills of the marketplace, thus preparingconsumers to better identify possiblehazards such as predatory transactionsand mortgage fraud.

Based on response to this pilotprogram, the opportunity to partner withthe Division on future educationalofferings will be made available toother brokerages and groups across thestate. For further information on thisor future events, call Mary Petro at(614) 466-6297.

Note: The appraisal education taken tosatisfy disciplinary orders can not be used

for credit for the 14 hours of approvedcontinuing education

required annually.

Consumer Forum Planned

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Using Appraiser Trainees The Safe Way

Lower interest rates have generated so much work that professional appraisers everywhere are struggling tokeep up. Many of these appraisers hire trainees as a solution to meeting their client commitments. While this may appearto be a good solution, be aware of the potential hidden costs and risks to your firm.

If done properly, the addition of trainees to your appraisal practice may provide a cost-effective increase involume and allow you to maintain the quality you have worked so hard to achieve. Before looking for trainee candidates,you must commit to make available many hours of training and supervision.

Tell Tale Claims – Actual Claims from LIA Files

The Trainee Cover-UpOne particular claim involving a trainee will always stick in our mind. A lender sued an appraiser for over-

appraising a commercial building. It was claimed that the building was virtually worthless because it had no plumbing orelectricity. The loan balance would not have been recovered if the necessary improvements were to have been made.The lender argued that the loan never would have been approved had the true building conditions been reported.

Initially, the appraiser seemed baffled by the allegations. At first, he claimed that what he thought was a bathroomturned out to be a closet. He found the door closed and did not go inside. The matter of the electricity was another story.He swore that the building was occupied with people, sitting at desks, working on computers and adding machines and thatlights were on.

After further investigation, we learned that the building in question shared a common wall with the building nextdoor. The same individual owned both buildings. People who worked at the building in question used the bathroom nextdoor, and extension cords were run from one building to the other through a large hole in the common wall. The propertyappraised truly had no utilities present.

When faced with this information, the appraiser finally admitted that a trainee was sent out to do the inspectionand he had not actually seen the premises. He didn’t mention this before because he had signed the report and stated thathe had personally inspected the property.

The “Valuable” HelperAnother appraiser was overworked and hired a trainee to help with the workload. On certain assignments, the

trainee just did some research. On others, the trainee did the whole report, including the inspections. In all cases, thesupervising appraiser signed as if he had done them himself. After one problem appraisal was brought to the attention ofthe state appraiser board, an investigation determined that numerous reports had been improperly prepared. Unbeknownstto the appraiser, the trainee was fabricating comparable sales data to complete assignments. The appraiser ultimately hadhis license revoked due to his failure to properly supervise the trainee.

What You Can DoOn average, an appraisal claim is submitted 2-3 years after the appraisal is completed. By that time, the trainee

who helped with the assignment in question may no longer be available. It is critical that you coach your trainees toproduce files that are well documented, with legible notes and printouts of all research data. Here’s what to add to yourtraining checklist:

· Readable notes from the field inspection, including clarification of anything that could generate a question· Print-outs of information from public records· Print-outs of data used for comps presented, with notes on reasons for selection· Print-outs of data used for comps not used, with notes on reasons for rejections· Interior and exterior photos

REMEMBER: YOU WILL BE HELD ACCOUNTABLE FOR YOUR TRAINEE’S WORK. Be sure that you understandeverything in the file before affixing your signature. The time it takes to do this is well worth it! To the entire world, youare responsible for any work product that bears your name.

Your Standard of ExcellenceCoaching a trainee can provide you with a good review of the procedures necessary for proper file documentation. If youare a coach, be a reliable one. Contribute meaningfully to the development of your trainee’s career. The quality of thetraining you give is a reflection of your professionalism.

Reprinted with permission from Robert C. Wiley, President, Liability Insurance Administrators.

ATTENTION BROKERS! Ohio Rules and Regulations updates are available at www.state.oh.us/ohio/ohiolaws.htm

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Appraiser Disciplinary Actions�REVOCATIONSRANDY J. EVANS – Statelicensed residential real estateappraiser – License No. 442108– Cleveland, OH. Mr. Evans failedto maintain and make available forinvestigation (inspection and copying),by the Superintendent of Real Estate,a true copy of the appraisal andsupporting data assembled andformulated in preparing the appraisalreport. Further, Mr. Evans failed toreport the proper sale amounts ofcomparable properties and failed toreport the prior sale of comparableproperty. For violations of OhioRevised Code 4763.11(G)(14), as itincorporates Ohio Revised Code4763.14 and Ohio Revised Code4763.11(G)(5), as it incorporates theUSPAP Rule 1-1(b) and OhioRevised Code 4763.11(G)(6) RandyJ. Evans’ license was orderedrevoked.

YVONNE FREY – State licensedresidential real estate appraiser– License No. 417794 – Spring-boro, OH. Ms. Frey’s license wasrevoked on five counts for failing todisclose the prior sales of the subjectproperty, failing to state the reportingoptions, failing to disclose the sourcesfor the site values cited in the costapproach to value in four appraisalreports she prepared in April, Mayand June of 2001, and for submittingappraisal reports to the divisionpursuant to an investigation that werenot true and accurate copies of theoriginal appraisal reports that thedivision received with the writtencomplaints. Ms. Frey’s revocationresulted from the multiple violationsof Ohio Revised Code 4763.11 (G)(5)as it incorporates USPAP Rules 1-5(b)(i), 2-1(b), 2-2, 1-1(b) and 1-4(a)and Ohio Revised Code 4763.11(G)(6), and Ohio Revised Code4763.11(G) (5), as it incorporates theRecord Keeping provision of theUSPAP and Ohio Revised Code4763.14.

SUSPENSIONSRAYMOND DAYLE PETERS –State certified general real estateappraiser – License No. 398623 –Smithville, OH. Received a sixty (60)day suspension of his certificate, wasordered to complete a fifteen (15) hourclassroom course in income approachto value and received a writtenreprimand for the careless or negligentmanner in which he rendered appraisalservices resulting in making such aseries of errors that individually maynot sufficiently affect the results of theappraisal but in the aggregate affectedthe credibility of the results of theappraisal. These were deemed aviolation of Ohio Revised Code4763.11(G)(5), as it incorporates the1997 USPAP Rule 1-1(c) and failureto exercise competency, due diligenceand to disclose any ownership in afinancial institution to the transaction.For his violation of Ohio Revised Code4763.11(G)(5), and Ohio Revised Code4763.11 (G)(6) as it incorporates the1997 USPAP Rule 2-2, Mr. Peters wasissued a written reprimand remindinghim that the appraiser must keep andtransmit a true copy of each appraisalto any requesting investigativeauthority. For his violation of OhioRevised Code 4763.11(G)(5), and OhioRevised Code 4763.11(G)(6), as itincorporates the 1997 USPAP Rule 1-1(b) as set forth in the notice ofopportunity for hearing, Mr. Peters isordered to complete a fifteen (15) hourclassroom course in sales comparisonapproach to value. All courses mustbe taken within one hundred twenty(120) days of the date of the order;however, the Superintendent may grantan extension upon good cause shown.The additional appraisal education takencannot be used for credit toward thefourteen (14) hours of annually requiredappraiser continuing education.Specifically, Mr. Peters failed to explainin the appraisal reports how he arrivedat the sale amount. He also failed toindicate where he obtained the sitevalues per acre in appraisal reports. He

further failed to prominently statewhich of the three reporting options wasused in each of the appraisals, and heused the wrong age for a comparableproperty in the appraisal report.REPRIMANDSDEBRA M. DICKENS – Statelicensed residential real estateappraiser – License No. 380353 –Ironton, OH. For failing to correctlyreport property data for comparableproperty she utilized in appraisal reportsshe prepared, for furnishing conflictinginformation with regard to the size, age,garage, and basement type, and failingto provide any description identifyingthe sources of the site value andreproduction costs that she utilized inthe cost approach sections of twoappraisal reports, Ms. Dickens wasdeemed to have violated Ohio RevisedCode 4763.11 (G) (5) as that sectionincorporates USPAP Rule 1-1 (C) andOhio Revised Code 4763.11 (G)(6).The Board issued a written reprimandinstructing Ms. Dickens to use morecare in the report writing, stating that ifa report assignment is outside her areaof expertise that she utilize outside helpin preparing that assignment or declinetaking the assignment. Ms. Dickensalso was found to have violated OhioRevised Code 4763.11(G)(5) as thatsection incorporates USPAP Rule 2-1(b) and Ohio Revised Code 4763.11(G)(6). With respect to the disparitiesfound in the report the Board againcautioned Ms. Dickens that extremecare be given in making a physicaldescription that is accurate for not onlythe subject but on all comparable sales,and that all costs and other data beadequately documented. Furthermore,where the data sources are used, theappraiser must be certain to refer tothe conveyance file, auditor’s office andany other sources at the courthouse infurthering documentation of any salesthat have taken place. Failure to do soresults in reports that may mislead theconsumer and/or the lender.

ATTENTION BROKERS! Forms are available for download from the Division’s Web site at www.com. state.oh.us/real

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Real Estate Disciplinary Actions

ATTENTION BROKERS! Ohio Rules and Regulations updates are available at www.state.oh.us/ohio/ohiolaws.htm

SUSPENSIONS, FINES,EDUCATIONGARY M. SCHMITZ, broker,Columbus, Ohio, was fined $2,000.00for violating two counts of OhioRevised Code 4735.18(A)(6), one as itincorporates Article 3 of the Canons ofEthics for the Real Estate Industry,when he failed to cooperate with theDivision during a compliance audit bynot having a licensee’s license availableand by allowing a salesperson to workwithout a license.GARY J. SECKEL, broker,Columbus, Ohio, was fined $750.00 forviolating Ohio Revised Code4735.18(A)(6) as it incorporates Article3 of the Canons of Ethics for the RealEstate Industry, when he failed tocooperate with the Division by notsubmitting the required documents tocorrect deficiencies identified during acompliance audit. In addition, he wasfined $250.00, for violating Ohio RevisedCode 4735.18(A)(9) as it incorporatesRevised Code 4735.54 and OhioAdministrative Rule 1301:5-6-03, whenhe failed to produce a compliantcompany policy. Finally, he was fined$250.00, for violating Ohio RevisedCode 4735.18(A)(6) as it incorporatesOhio Administrative Rule 1301:5-5-09,when he failed to keep a columnarledger for trust funds.JIMMIE R. RONSHAUSEN, bro-ker, West Lafayette, Ohio, as the resultof an investigation of a formalcomplaint, was fined $50.00 forviolating Ohio Revised Code4735.18(A)(6) as it incorporates OhioRevised Code Sections 4735.62(A),(C) and (D), when he permitted a buyerto enter and take possession of aproperty without the permission of thesellers.TIMOTHY W. PRIDDY, sales-person, Troy, Ohio, as the result of aninvestigation of a formal complaint, wasfined $100.00 for violating two countsof Ohio Revised Code 4735.18(A)(21),one as it incorporates Ohio RevisedCode 4735.16(B)(1), when Mr. Priddyadvertised that he was a salespersonfor a company to which he had not yettransferred his license and when he

failed to display his broker’s name on a“for sale” sign.BRIAN D. KEMP, salesperson,Worthington, Ohio, as the result of aninvestigation of a formal complaint, wasfined $100.00 for violating OhioRevised Code 4735.18(A)(6) as itincorporates Ohio Revised Code4735.18(A)(21), when he advertisedproperty in the M.L.S. as having noleased items, when in fact, the hot watertank on the property was leased. Inaddition, he was required to completeand to submit proof of completion of athree (3) hour civil rights course, forviolating Ohio Revised Code4735.18(A)(6), as it incorporates OhioRevised Code 4735.55(A)(2), when hefailed to use the correct fair housinglanguage in the written agencyagreement with the seller.KENNETH R. YOUNG, broker,Brunswick, Ohio, as the result of aninvestigation of a formal complaint, hada fifteen (15) day suspension of hislicense, which commenced on April 9,2004, was fined $300.00, and wasrequired to complete and to submitproof of completion of the ten (10) hourbrokerage post-licensure course, forviolating Ohio Revised Code4735.18(A)(20), when he offered realestate for sale, without the knowledgeand consent of the owner or theowner’s authorized agent.KEITH C. LOWE, salesperson,Cleveland, Ohio, had his licensesuspended until he provides evidencethat his probation is complete orterminated by the court, for violatingOhio Revised Code 4735.18(A). Mr.Lowe pled guilty to a felony, conspiracyto defraud the U.S., and was convictedof said felony in the U.S. District Court,Northern District of Ohio, EasternDivision in case No. 1:02 CR 352-041,on August 5, 2003.MARY F. SPIRNAK, salesperson,Strongsville, Ohio, was fined $100.00for violating Ohio Revised Code4735.18(A)(6), as it incorporates OhioAdministrative Rule 1301:5-1-10. Ms.Spirnak issued to the Division apersonal check for her renewal fees.The check was returned to the Division

“unpaid.” Despite notice to her of thereturn of this check, the fees remainedunpaid.ROBERT K. MAKARA, sales-person, Strongsville, Ohio, as the resultof an investigation of a formalcomplaint, was fined $300.00 and wasrequired to complete and to submitproof of completion of the ten (10) hoursales post-licensure course, for violatingOhio Revised Code 4735.18(A)(14),when he offered a commissionreduction in return for the buyersoffering additional consideration in thepurchase of a property. This was aninducement not recited in the purchaseagreement.RONALD KRYC, salesperson, Mt.Pleasant, South Carolina, was fined$500.00 and was required to pay$39.00, as replacement of a dishonoredcheck, for violating Ohio Revised Code4735.18(A)(6), as it incorporates OhioAdministrative Rule 1301:5-1-10. Mr.Kryc issued to the Division a personalcheck for his renewal fees. The checkwas returned to the Division “unpaid.”Despite notice to him of the return ofthis check, the fees remained unpaid.PAUL A. DUVALL, salesperson,Belpre, Ohio, as the result of aninvestigation of a formal complaint, wasfined $200.00 and was required tocomplete and to submit proof ofcompletion of a three (3) hour courseon agency, for violating Ohio RevisedCode 4735.18(A)(9) as it incorporatesOhio Revised Code 4735.71(A), whenhe had the buyer of a property executea dual agency disclosure form, but failedto indicate on the form what was thenature of the relationship that createdthe conflict.JOSEPH A. HARTLEY, broker,Aiken, South Carolina, as the result ofan investigation of a formal complaint,was fined $200.00, for violating OhioRevised Code 4735.18(A)(6) as itincorporates Ohio Revised Code4735.14(D), when he failed to notifythe Division of his home addresschange. In addition, as the result of an

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Q. (1) What does Ohio real estate licensing law say about crimes of moral turpitude? (2) And, what is a crimeof moral turpitude?

A. (1) R.C. 4735.18(A) provides that the Ohio Real Estate Commission may impose disciplinary sanctions uponany licensee who has been convicted of a crime of moral turpitude. R.C. 4735.13 states that any licenseewho has been convicted of a crime involving moral turpitude shall notify the superintendent of the convictionor finding within fifteen days of the finding or conviction, or be subject to immediate revocation of the license.

(2) The Ohio Supreme Court has found that moral turpitude is generally defined as an “ [a]ct or behavior thatgravely violates moral sentiment or accepted moral standards of [the] community and is a morally culpablequality held to be present in some criminal offenses as distinguished from others. * * * citing Black’s LawDictionary (6 Ed.1991). Such acts must be measured against the accepted standards of morality, honesty,and justice prevailing upon the community’s collective conscience. Proof of a criminal conviction is generallynot conclusive of the issue of moral turpitude, which requires consideration of all the circumstances surroundingthe illegal conduct. Rather, where moral turpitude is disputed, review of the circumstances underlying criminalconvictions is necessary to determine if they manifest the requisite lack of social conscience and depravitybeyond any established criminal intent.

Q & A - Moral Turpitude

The Ohio Division of Real Estate & Professional Licensingreceives up to 500 pieces of mail each day. The mail receivedranges from checks for new sales applicants to continuingeducation for long time licensees and everything in between. Themajority of the documents received are complete and the mail canbe opened up and sent to the correct section for processing.However, each day mail is received containing checks with noexplanation as to what the funds are for, applications that are notcomplete or in some cases documents that do not have a file numberon them or any indication as to what they relate to. This lack ofsufficient information hinders the processing of these checks anddocuments.

When you send documents other than forms prescribedby the Division please provide an explanation as to why you aresubmitting them. The appropriate section cannot process yourrequest until all required documents are received. When sending acheck document or other information that was omitted from aprior mailing, please indicate that this is the case so that staff canadd the follow-up material to your original application. If the Divisionrequests documents from you please return the requesting letteralong with the documents. Failure to return the documents withinthirty days will result in the forfeiture of your application fee.

Before sealing your envelope, double-check to make surethe documents are complete, all necessary attachments areincluded, and the proper fee is enclosed if one is required.

Our ultimate goal is to serve you, our licensee, better andin a timely fashion. By adopting these few easy steps, you willassist us in achieving that goal.

Information to the Division

Ohio Ethics Law prohibits stateemployees from accepting gifts from anyperson or entity with which we do – or mayin the future do – business, including thosewe regulate. Over the past several months,many of you have shown your appreciationto Division staff for outstanding service orassistance with a difficult situation by sendingflowers, gifts or some other token. It is withregret that we have returned these gestureswith a note explaining the provisions of OhioEthics Law. While your generosity andgratitude are special and humbling to therecipient, a letter, note or email ofcommendation addressed to the person’ssupervisor or Superintendent Petit would bea welcome and appropriate substitute for atoken of your appreciation. Such a writtenaccolade means so very much to the recipientand will follow him or her throughout stateservice because it is placed in the staffmember’s personnel file.

Should you have any questionsregarding Ohio’s ethics laws relating toemployees of the executive branch, you maycontact the Division’s legal section or the OhioEthics Commission at (614) 466-7090.

Gifts and Ohio’s Ethics Law

ATTENTION BROKERS! Forms are available for download from the Division’s Web site at www.com.state.oh.us/real

State of OhioDepartment of CommerceDivision of Real Estate and Professional Licensing77 South High Street, 20th FloorColumbus, OH 43215-6133

PRESORTED STANDARDU.S. POSTAGE

PAIDColumbus, OH

PERMIT NO. 5455

THE OHIO DEPARTMENT OF COMMERCE IS AN EQUAL OPPORTUNITYEMPLOYER AND SERVICE PROVIDER.

1. The cost to renew your license is $39.00 for sales and $49.00 for brokers, due each year on your birthday.

2. Licensees are sent a renewal reminder approximately 60 days before the due date. The sales renewalreminder is mailed to the home address, brokers’ renewals are mailed to the business address. If you do notreceive this courtesy reminder please check your address online and notify the Division if it is not correct.REMEMBER, even if you do not receive the reminder you still owe the annual renewal fee by your licenseexpiration date.

3. To avoid having your license go into a “suspended status,” renew online or have your payment post-markedby your birthday. A suspended status means you will have to submit to the Division your original license, aSale or Broker Transfer/Reactivation Application, a 50% penalty and a reactivation fee. In addition, youmay not transact any business while you are suspended.

WANT TO HAVE A GOOD TIME ON YOUR BIRTHDAY AND SAVE MONEY?

RENEW ON TIME

Real Estate Disciplinary Actions continued...

investigation of a formal complaint, had a sixty (60) day suspension of his license, to commence upon reactivation and wasfined $500.00, for violating Ohio Revised Code 4735.18(A)(6) as it incorporates Ohio Revised Code 4735.13(C), when hefailed to report convictions to the Division of misdemeanor crimes of moral turpitude.