OH Real Estate cheat sheet

Fiduciary duties are commonly remembered as OLD CAR: obedience, loyalty, disclosure, confidentiality, accountability, and reasonable care.

Agency is created by an express or implied agreement, estoppel, or ratification; compensation alone does not create agency.

Single agency means the licensee represents only the buyer or only the seller; the agent owes fiduciary duties to that principal.

Dual agency occurs when one licensee represents both buyer and seller in the same transaction; Ohio requires informed written consent from both.

A seller's agent owes loyalty to the seller but must disclose known material facts to a buyer that could affect the buyer's decision.

Confidential information received during an agency relationship may not be disclosed without authorization and may remain protected after termination.

A licensee must account for all funds and property entrusted by a principal and may not commingle trust funds with personal or brokerage operating funds.

An agent may not acquire a secret profit, engage in self-dealing, or represent conflicting interests without full disclosure and consent.

Essential elements of a real estate contract are offer, acceptance, consideration, legal capacity, and lawful purpose; land sale contracts must satisfy the Statute of Frauds.

The Statute of Frauds requires contracts for the sale of land and leases longer than one year to be written and signed by the party to be charged.

Ohio sellers of most one-to-four family dwellings must deliver a residential property disclosure form describing known material defects before the buyer is bound.

Earnest money is a buyer deposit held in trust; it is applied to the purchase price at closing or disbursed according to the contract's default and contingency terms.

Common contingencies include inspection, financing, appraisal, title review, and sale of the buyer's existing home; missing a deadline can waive or terminate the right.

A general warranty deed includes covenants of seisin, right to convey, quiet enjoyment, warranty, and freedom from encumbrances.

A quitclaim deed transfers whatever interest the grantor may have without warranty of title.

A land installment contract lets the buyer possess and pay over time while the seller retains legal title until the contract is fulfilled; it should be recorded.

Deeds are recorded with the county recorder; recording gives constructive notice and helps establish priority among interests.

PITI = principal + interest + property taxes + homeowners insurance; mortgage insurance and HOA dues may be added to the monthly housing expense.

Monthly payment on an amortizing loan: M = P × [i(1+i)^n] ÷ [(1+i)^n − 1], where i is the monthly rate and n is the number of payments.

LTV = loan amount ÷ property value (or purchase price, whichever applies); down payment = value − loan amount.

One discount point equals 1% of the loan amount; paying points generally lowers the interest rate.

Conventional loans commonly require private mortgage insurance when LTV exceeds 80%; federal law provides cancellation and automatic termination rules.

FHA loans use upfront and annual mortgage insurance premiums; VA loans generally charge a funding fee but not monthly mortgage insurance.

DTI = total monthly debt payments ÷ gross monthly income; lenders compare it with program limits.

RESPA/TRID requires a Loan Estimate within three business days after application and a Closing Disclosure at least three business days before closing.

Ohio Housing Finance Agency programs can provide eligible buyers with below-market loans and down payment assistance.

ORC Chapter 4735 governs Ohio real estate brokers and salespersons; administrative rules are in OAC 1301:5.

The Ohio Division of Real Estate & Professional Licensing, within the Department of Commerce, licenses and regulates brokers and salespersons.

A salesperson must be sponsored by and act under the supervision of a licensed broker.

Brokers must maintain trust accounts for client funds, keep transaction records, and avoid commingling trust funds with operating funds.

Advertising must include the brokerage name and must not be false or misleading; licensees may not advertise property without authority.

Ohio real estate licenses renew on a three-year cycle, and continuing education is required, including core law hours.

Unlicensed persons may not perform acts requiring a real estate license, and paying compensation to unlicensed persons for brokerage services is prohibited.

Dual agency requires informed written consent from both parties; agency disclosure and the Consumer Guide to Agency Relationships must be provided as required.

Fair housing laws prohibit discrimination based on protected characteristics in the sale or rental of housing.

The three approaches to value are sales comparison, cost, and income; the appraiser reconciles them into a final value estimate.

Sales comparison approach: adjust comparable sales for differences; if the comparable is superior, subtract; if inferior, add.

Cost approach: value = land value + replacement cost new − accrued depreciation.

Income approach: value = net operating income ÷ capitalization rate; gross rent multiplier = sale price ÷ gross monthly or annual rent.

Highest and best use must be legally permissible, physically possible, financially feasible, and maximally productive.

Depreciation includes physical deterioration, functional obsolescence, and external (economic) obsolescence.

Ownership estates include fee simple absolute and life estate; co-ownership forms include tenancy in common (no survivorship), joint tenancy (survivorship), and tenancy by the entirety (spouses).

Encumbrances include easements, liens, covenants, conditions, and encroachments; liens are financial claims that can affect title.

Ohio allows transfer-on-death designation of real property by affidavit under ORC 5302.22.