OH RE Broker flashcards
OH RE Broker · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Responsible broker
- The licensed broker designated by an Ohio brokerage who is accountable to the Division for all affiliated licensees, supervision, trust accounts, and office compliance.
- Commingling
- Mixing personal or brokerage operating funds with client trust funds in the same account; prohibited in Ohio and grounds for discipline.
- Trust account deposit deadline
- Earnest money must be deposited in a trust account no later than three business days after acceptance, unless all parties agree in writing to another holder.
- Unlicensed assistant limits
- An unlicensed assistant may do administrative work but may not negotiate, show property for compensation, or hold out as a licensee; cannot be paid by commission.
- Record retention
- Ohio brokers must keep transaction records three years and trust records three years after disbursement; agency disclosure forms are also retained three years.
- Failure to supervise
- An independent violation where the responsible broker lacks written procedures, advertising review, or documented training, even if a salesperson committed the underlying act.
- Team advertising rules
- Team names must be registered with the Division, and all advertising must include the brokerage name; team names cannot imply a separate brokerage.
- Ohio license term
- An Ohio real estate license is valid for three years; renewal requires continuing education, including core law and civil rights hours.
- Ohio CE requirement
- Thirty hours per three-year cycle, including 9 hours of core law and 3 hours of civil rights (canonical Ohio breakdown); verify current Division rules.
- Ohio fair housing classes
- Under R.C. 4112: race, color, religion, sex, military status, familial status, national origin, disability, and ancestry; note differences from federal FHA.
- Federal FHA classes
- Race, color, religion, sex, disability, familial status, and national origin; the federal Act does not list ancestry, age, or military status.
- Consumer Guide to Agency
- An Ohio disclosure given at first substantive contact explaining agency relationships and duties; acknowledgment forms are retained three years.
- Lead-based paint disclosure
- Federal requirement for pre-1978 housing: seller discloses known lead hazards and buyer receives a 10-day opportunity to test unless waived in writing.
- Dual agency consent
- Ohio requires written informed consent from both parties before a brokerage represents both sides; otherwise a different licensee is designated for one side.
- Grounds for discipline
- Includes unlicensed activity, failure to account for funds, misrepresentation, and failure to supervise; penalties include fines, suspension, or revocation.
- Statute of frauds
- Requires writing signed by the party to be charged for real estate purchase contracts, leases over one year, and agency agreements.
- Counteroffer effect
- A counteroffer terminates the original offer; the original offer cannot later be accepted unless the counteroffer is withdrawn and the offer renewed.
- Revocation of offer
- An offer may be revoked any time before acceptance; revocation is effective when received by the offeree, not when sent.
- Procuring cause
- The licensee whose efforts produced the ready, willing, and able buyer; determines commission entitlement when multiple licensees are involved, subject to the broker's agreement.
- Transaction broker
- An Ohio brokerage providing limited services without full agency representation; duties and limitations must be disclosed in writing to the parties.
- Designated agency
- A form of dual agency where the brokerage designates one licensee to represent the buyer and another to represent the seller, with written consent.
- Contingency deadline
- A contract date by which a condition (financing, inspection, appraisal, home sale) must be satisfied or waived; missing it can waive the contingency.
- Earnest money holder
- Per contract; if silent, Ohio practice places it with the listing broker's trust account, and disputes follow the contract's mediation or arbitration clause.
- Closing disbursement rule
- Funds are disbursed only after clear title and recording; the settlement statement (ALTA/CD) documents prorations, commissions, and costs.
- Gross rent multiplier
- GRM = price / gross annual rent; a quick comparison tool for income properties, ignoring expenses and financing.
- Net operating income
- NOI = effective gross income minus operating expenses; excludes debt service, depreciation, and capital expenditures.
- Cap rate
- Cap rate = NOI / value; value = NOI / cap rate. Higher cap rates generally indicate higher risk and return expectations.
- Cash-on-cash return
- Annual pre-tax cash flow divided by total cash invested; measures the efficiency of leverage in an income property.
- Debt service coverage ratio
- DSCR = NOI / annual debt service; lenders typically require 1.20 to 1.25 or higher before approving an income-property loan.
- Loan-to-value ratio
- LTV = loan amount / appraised value or purchase price, whichever is lower; 80% LTV often avoids private mortgage insurance.
- Sales comparison adjustment
- Adjust comparables to the subject: if the comp is superior, subtract value; if inferior, add value; never adjust the subject.
- Cost approach formula
- Value = replacement cost minus depreciation plus land value; most reliable for new construction or special-purpose properties.