Possible sanctions: license suspension, revocation, fines, reprimand, and required education.
Before you read
Test yourself first: 5 questions
Question 1 of 5
An Ohio salesperson deposits an earnest money check into her personal checking account instead of the brokerage trust account. This conduct is best described as:
Answer: B. Placing client or third-party funds (like earnest money) into a personal or operating account mixes them with personal funds (commingling) and using them is conversion. Ohio license law requires such funds be held in a separate trust/escrow account, and violations are grounds for discipline.
Question 2 of 5
Why does Ohio fund a Real Estate Recovery Fund (recovery program)?
Answer: B. Ohio's recovery fund exists to provide limited compensation to consumers who suffer losses from a licensee's fraud or misconduct and cannot otherwise recover their judgment.
Question 3 of 5
Ohio maintains a fund that may reimburse members of the public who obtain an unsatisfied court judgment against a licensee for fraud, misrepresentation, or conversion in a real estate transaction. This fund is the:
Answer: A. The Ohio Real Estate Recovery Fund (recovery special account) reimburses aggrieved members of the public who have an unsatisfied judgment against a licensee arising from fraud, misrepresentation, deceit, or conversion of trust funds in a transaction in which the licensee acted as a licensee.
Question 4 of 5
When the Ohio Real Estate Recovery Fund pays a claim on behalf of a licensee, what happens to that licensee's license?
Answer: B. When the Recovery Fund pays out because of a licensee's wrongdoing, that licensee's license is automatically suspended and is not reinstated until the licensee reimburses the fund in full, typically with interest. The fund protects the public, not the wrongdoer.
Question 5 of 5
Which of the following acts by an Ohio licensee would most likely be grounds for disciplinary action by the Commission?
Answer: C. Substantial misrepresentation, fraud, or dishonest dealing are clear violations of Ohio license law and grounds for discipline. The other choices describe proper, required conduct.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- The Ohio Real Estate Commission hears disciplinary matters; the Division investigates complaints.
- Possible sanctions: license suspension, revocation, fines, reprimand, and required education.
- Disciplinary grounds include fraud, misrepresentation, dishonest dealing, and violations of license law or Canons of Ethics.
- Ohio maintains a Real Estate Recovery Fund to reimburse consumers harmed by a licensee's fraud or misconduct.
- Recovery payment generally requires an unsatisfied court judgment against the licensee.
- A licensee whose conduct causes a payout from the fund typically has their license suspended until repayment.
- Consumers and licensees may file complaints with the Division for investigation.
Ohio License Discipline, Penalties & Recovery Fund Quick Sheet: FAQs
Is Ohio License Discipline, Penalties & Recovery Fund Quick Sheet on the real estate exam?
Yes. State License Law is a scored domain on the Ohio real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Ohio test this differently?
Ohio applies its own license law on top of the national portion. This page covers the Ohio rules specifically, which is what the state section of your exam tests.
