Real Estate Brokerage Operations and Office Management
What this domain tests
The brokerage operations domain asks how an Ohio broker of record builds and runs an office that satisfies Division of Real Estate & Professional Licensing rules: supervision, licensing, records, trust funds, advertising, and staff. The exam favors scenario questions about who is responsible when a salesperson or assistant acts.
Core rules
- The broker is responsible for every affiliated salesperson's real estate activity. Independent-contractor tax status does not remove supervision. A written office policy should cover advertising approval, transaction-file checklists, trust-account handling, and escalation.
- Register the principal office and each branch with the Division, display the license, and notify the Division of address or name changes. A branch needs a licensed branch manager or the broker's direct supervision.
- Keep transaction records for at least three years under ORC 4735.24, including agency agreements, offers, disclosures, closing statements, and trust records.
- Trust funds: earnest money belongs in the broker's trust account, not the operating account. Deposit promptly, ledger by transaction, reconcile, and disburse only as authorized. No commingling.
- Advertising must include the registered brokerage name; no blind ads. Team and social-media ads follow the same rule. Unlicensed assistants may do clerical work but may not perform activities requiring a license.
Worked example
A salesperson posts, 'Call Jane-top producer' but omits ABC Realty. Jane may advertise only under the brokerage's registered name. The broker should have the post corrected to 'Jane Doe, Salesperson, ABC Realty' and document the correction. The broker, not Jane alone, is exposed for failure to supervise.
Traps
Treating independent-contractor status as a supervision shield; depositing a buyer's check into the operating account; letting an unlicensed assistant negotiate repairs; using an unregistered team name.