Your FREE Ohio Real Estate Flashcards 2026 – 200+ Cards

An Ohio marital right: a non-owning spouse holds a life-estate interest in one-third of real property the other spouse owned during marriage; the spouse signs the deed to release it.

The Ohio agency, within the Department of Commerce, that licenses and regulates real estate salespersons and brokers under ORC Chapter 4735.

The Ohio Revised Code chapter governing real estate brokers and salespersons — licensing, agency, disclosure, trust funds, and discipline.

The chief officer of the Division, appointed by the Director of Commerce; issues and disciplines licenses and runs the licensing program.

A five-member board appointed by the Governor — four brokers (10+ years' experience) and one public member — that adopts the canons of ethics and hears appeals of discipline.

Five members: four licensed brokers with at least 10 years' experience and one public (non-licensee) member, all appointed by the Governor.

The Superintendent runs day-to-day licensing and discipline; the Commission adopts rules (canons of ethics) and hears appeals of disciplinary actions.

Ohio's transfer tax: a mandatory state fee of $1 per $1,000 of sale price, plus a permissive county fee of up to $3 per $1,000; customarily paid by the seller to the county auditor.

120 hours of education across four courses before sitting the salesperson exam.

40 hrs Principles & Practices, 40 hrs Ohio Real Estate Law, 20 hrs Appraisal, 20 hrs Finance = 120 hours.

The 40-hour Ohio Real Estate Law course must include instruction on civil rights, housing discrimination, and desegregation.

At least 18 years old, a high school graduate or equivalent, and sponsored by an Ohio brokerage.

70% on each portion — the national portion and the Ohio state portion — scored separately.

PSI Services administers the Ohio real estate salesperson and broker licensing exams.

120 questions total: an 80-question national portion and a 40-question Ohio state portion, in one 180-minute session.

A newly licensed salesperson must complete 20 hours of post-licensing education within 12 months of license issuance.

30 hours every three years, including at least 3 hours each of Core Law, Civil Rights, and Canons of Ethics.

Every three years, tied to the licensee's date of birth, with CE completed before renewal.

Actively licensed for at least 2 of the past 5 years with at least 20 completed transactions, plus broker education.

The license is held by the affiliated (managing) broker; the salesperson may only work and be paid through that brokerage.

A salesperson may accept compensation only from the brokerage they are affiliated with — never directly from a buyer or seller.

The Ohio form a licensee uses to disclose whom each agent represents; given before the party signs an offer to purchase or lease.

It must be provided before the buyer or seller signs an offer to purchase or lease, so they know the agency relationships.

Every Ohio brokerage must have a written policy on agency, disclosed to clients, stating how it handles representation and whether it permits dual agency.

Representing both buyer and seller in one transaction; legal only with the informed, written consent of both clients, disclosed on the Agency Disclosure Statement.

When two agents from the same Ohio brokerage represent the buyer and seller, it can create a brokerage-level dual agency that must be disclosed and consented to.

The form a seller of most 1–4 family residential property gives the buyer, based on the seller's actual knowledge of the property's condition.

The seller's actual knowledge of the property's condition — not a guarantee or an inspection.

If the seller fails to deliver the Residential Property Disclosure Form before the buyer signs, the buyer may rescind in writing within 3 business days after delivery (or before transfer of title).

For pre-1978 housing, the federal lead disclosure applies in addition to Ohio's form — give the EPA/HUD pamphlet and a 10-day inspection window.

In a separate, non-interest-bearing special or trust account at an Ohio financial institution, separate from the broker's own funds.

Checks and deposit tickets must contain the words 'trust account' or 'special account.'

A broker must keep complete and accurate records of real estate transactions for at least 3 years.

The broker generally keeps the funds in the trust account until the parties agree in writing, a court orders release, or the broker interpleads the funds.

Improperly mixing a client's trust funds with the broker's own or business funds — a license-law violation under ORC 4735.18.

Reimburses members of the public who win a court judgment for actual losses from a licensee's fraud or misconduct but cannot collect it.

$40,000 is the aggregate cap for all claims against any one licensee.

The licensee's license is automatically suspended until the licensee repays the fund in full plus interest.

The Ohio Civil Rights Commission (OCRC) enforces the state's fair housing and anti-discrimination laws under ORC Chapter 4112.

All seven federal Fair Housing Act classes PLUS military status and ancestry (ORC 4112.02).

Steering buyers toward or away from neighborhoods by protected class violates both ORC 4112.02 and Chapter 4735 license law — a licensee must refuse.

Because Ohio retains dower, a married seller's non-owning spouse should also sign the deed to release dower, even if not on the title.

$1 per $1,000 of the sale price (one mill), collected by the county auditor.

A county may levy up to $3 per $1,000 (three mills) on top of the mandatory state fee.

Customarily the seller (grantor), paid to the county auditor at the time of transfer.

Misrepresentation, fraud, dishonest dealing, commingling trust funds, or other violations of Chapter 4735 or Division rules.

Suspension or revocation of the license and/or fines, after notice and a hearing.

Even after an agency relationship ends, a licensee must keep confidential the client's information obtained during the relationship.

A broker must present all written offers to the seller promptly and objectively, even after an offer is accepted, unless instructed otherwise in writing.

Negotiating the sale or lease of real estate for another, for compensation, requires a real estate license.

Honesty, good faith, and disclosure of known material facts about the physical condition of the property — owed even to a customer.

After education, an applicant must generally pass the exam within 12 months of filing for exam eligibility.

Rules of conduct for Ohio licensees adopted by the Ohio Real Estate Commission; a required CE topic each renewal cycle.

The managing broker supervises affiliated licensees, maintains trust accounts and records, and is responsible for the brokerage's compliance with ORC 4735.

A licensee must advertise under the brokerage's name; blind ads (no brokerage identification) are prohibited.

A net listing (broker keeps any amount above the seller's set price) is disfavored as a conflict of interest under Ohio conduct rules.

Known material defects in the property's physical condition must be disclosed to all parties, even a customer.

Ohio is a common-law (separate-property) state, not a community-property state, but it still recognizes dower.

Ohio is a lien-theory state: the borrower keeps title and the lender holds a lien on the property.

Ohio enforces a defaulted mortgage through court-supervised judicial foreclosure, ending in a sheriff's sale.

ORC Chapter 5321 governs Ohio residential leases — security deposits, landlord/tenant duties, and remedies.

A brokerage may name different licensees to represent the buyer and seller (designated agency) to avoid a single dual agent.

Land plus everything permanently attached to it (improvements and fixtures) and the bundle of legal rights of ownership.

Movable property not permanently attached to land; transfers by a bill of sale, not a deed.

The rights of ownership: possession, use (enjoyment), exclusion, disposition (transfer), and control.

The most complete ownership — absolute, of unlimited duration, freely transferable by deed or will.

An estate measured by someone's lifetime; on death, the property passes to the remainderman or reverts to the grantor.

Personal property attached to real property so it becomes part of it and transfers with the land.

Method of attachment, Adaptability, Relationship of parties, Intention, and Agreement decide whether an item is a fixture.

A nonpossessory right to use another's land for a specific purpose, such as a driveway or utility line.

An easement benefiting an adjacent parcel (the dominant estate) and burdening another (the servient estate); it runs with the land.

An easement benefiting a person or company (e.g., a utility) rather than a neighboring parcel.

An improvement that extends unlawfully onto a neighbor's land; it is an encumbrance on title.

Any claim, lien, charge, or right that limits an owner's title — liens, easements, encroachments, deed restrictions.

A monetary claim against property as security for a debt — e.g., a mortgage, tax, or mechanic's lien.

Government's authority to regulate land for public health, safety, and welfare — zoning and codes, with no payment to the owner.

Government's power to take private property for public use through condemnation, paying the owner just compensation.

Property reverts to the state when an owner dies with no will and no legal heirs.

Police power, Eminent domain, Taxation, and Escheat — the four limits on private ownership.

A legal description using distances (metes) and compass directions (bounds) traced back to a point of beginning.

Describes land by townships, ranges, and sections — used widely across Ohio (Northwest Territory).

One square mile — 640 acres — and one thirty-sixth of a 6-mile-square township.

A unit of land area equal to 43,560 square feet.

Local land-use regulation (an exercise of police power) dividing land into use districts — residential, commercial, industrial.

Sole ownership of property by one person or entity.

Co-ownership with undivided, willable shares and no right of survivorship.

Ohio co-ownership in which a deceased owner's share passes automatically to the surviving owners.

Time, Title, Interest, and Possession — all four are required to create a joint/survivorship tenancy.

On an owner's death, the share passes automatically to the surviving co-owners, outside probate.

Gives the most protection; the grantor warrants clear title against all defects, even before the grantor's ownership.

The grantor warrants title only against defects arising during the grantor's own ownership.

Conveys only whatever interest the grantor has, with no warranties; often used to clear a cloud on title.

Competent grantor, named grantee, words of conveyance, legal description, and the grantor's signature and delivery.

Title transfers when the deed is delivered by the grantor and accepted by the grantee — not when it is recorded.

Recording a deed at the county recorder gives constructive notice to the public and sets priority.

Protects the insured against loss from title defects that existed before the policy date, such as liens or recording errors.

The recorded history of conveyances and encumbrances showing how ownership passed over time.

A claim or defect that impairs marketable title until it is cleared (often by a quitclaim deed or court action).

A married grantor's non-owning spouse signs the deed to release dower; otherwise the spouse's 1/3 life estate can cloud title.

Acquiring title by open, notorious, continuous, hostile, and exclusive possession for the statutory period.

When a person dies without a will, state law (Ohio's statute of descent and distribution) determines who inherits.

An Ohio deed that expressly creates a right of survivorship among the named co-owners.

The most probable price a property should bring in a competitive, open market under fair-sale conditions; an opinion of value.

Market price is the actual sale price; market value is an estimate of the most probable price.

An impartial, supported opinion of value by a licensed appraiser as of a specific date, following USPAP.

The Uniform Standards of Professional Appraisal Practice — the rules appraisers follow.

A licensee's estimate of value from recent comparable sales to help price a listing — not a formal appraisal.

Estimates value by comparing the subject to recently sold similar properties and adjusting for differences. Best for homes.

Land value + cost to rebuild the improvements new − depreciation. Best for new or special-use property.

Value = net operating income ÷ capitalization rate. Best for income-producing property.

Effective gross income minus operating expenses, before any mortgage payment.

Net operating income ÷ value; a higher cap rate signals more risk and a lower value.

Weighing the three approaches' indications into one final opinion of value — not averaging them.

The legally permissible, physically possible, financially feasible, and most profitable use of a site.

A buyer pays no more than the cost of an equally desirable substitute — the basis of the sales comparison approach.

Loss in value from physical deterioration, functional obsolescence, or external (economic) obsolescence.

A loss in value from outdated or poorly designed features (e.g., a one-car garage in a market expecting two).

A legally enforceable agreement between competent parties to do or refrain from a lawful act.

Mutual agreement (offer and acceptance), consideration, legal purpose, and competent parties.

Requires real estate contracts (and most leases over a year) to be in writing to be enforceable.

Void = missing an essential element (no contract); voidable = valid until a party with the right rescinds (e.g., a minor's contract).

Both parties promise to perform — e.g., a purchase agreement (promise to sell for a promise to buy).

One party performs only if the other acts — e.g., an open listing or an option.

A buyer's good-faith deposit, held in the broker's trust account and usually applied to the price at closing.

A condition that must be met for the contract to become binding — financing, inspection, or appraisal.

A court order making a defaulting seller complete the sale, because land is unique.

A contract employing a broker to find a buyer for the owner's property in exchange for compensation.

The listing broker earns the commission no matter who finds the buyer.

The broker earns the commission unless the owner sells the property themselves.

Only the broker who actually finds the buyer earns a commission.

The broker keeps any amount above the seller's set price — a conflict of interest, disfavored or prohibited.

A fiduciary relationship in which an agent represents a principal in dealings with third parties.

Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care — owed to the principal.

The principal (client) is owed full fiduciary duties; a customer is owed honesty and fair dealing.

Express agency is created by written or spoken agreement; implied agency arises from conduct.

The broker whose efforts directly produced a ready, willing, and able buyer — entitled to the commission.

Bans housing discrimination based on race, color, religion, national origin, sex, familial status, and disability.

Race, color, religion, national origin, sex, familial status, and disability — seven classes.

Protects households with children under 18 and pregnant persons from housing discrimination.

Illegally guiding buyers toward or away from neighborhoods based on a protected class.

Inducing panic selling by claiming a protected class is moving into a neighborhood.

A lender refusing to lend or insure in an area based on its racial or ethnic makeup.

A change in rules or services so a person with a disability can use housing (e.g., allowing a service animal).

A physical change to a unit (e.g., a ramp) a person with a disability may make, usually at their own expense.

Requires commercial facilities and public accommodations to be accessible to people with disabilities.

Brokers agreeing to set commission rates is illegal price fixing; commissions are always negotiable.

Where a broker holds client funds like earnest money, separate from the broker's own money.

Using a client's trust funds for the broker's own purposes — a serious license-law violation.

A contract employing a manager to operate an owner's property — leasing, maintenance, and accounting.

Conveys the right to use property for a term in exchange for rent; landlord = lessor, tenant = lessee.

In a gross lease the landlord pays operating expenses; in a net lease the tenant pays some or all of them.

Agents direct buyers to the public registry rather than independently disclosing offender locations.

A fact that would affect a reasonable buyer's decision or price; a known material defect must be disclosed.

A hidden physical defect not discoverable by ordinary inspection; a known latent defect must be disclosed.

An obvious defect a buyer could discover by reasonable inspection.

'Let the buyer beware' — now limited by disclosure law requiring sellers/agents to reveal known material defects.

Sellers/landlords of pre-1978 housing disclose known lead paint, give the EPA/HUD pamphlet, and allow a 10-day test window for sales.

An odorless, radioactive soil gas that can accumulate indoors; common in parts of Ohio.

A fibrous mineral in old insulation/flooring; remove or encapsulate to control airborne fibers.

Grows in damp areas; may require disclosure and remediation if it affects the property.

A buried tank that can leak and contaminate soil and groundwater, creating cleanup liability.

Federal law imposing liability for cleaning up hazardous-substance contamination on a property.

Protected areas where development is restricted; may require federal/state permits.

Properties in a FEMA flood zone may require flood insurance; location should be disclosed to buyers.

A property psychologically impacted by an event (e.g., a death); disclosure rules vary by state.

Ohio's seller disclosure for most 1–4 family homes, based on actual knowledge; gives the buyer a 3-day rescission if delivered late.

Sellers/landlords of pre-1978 housing must give buyers/renters the EPA/HUD 'Protect Your Family From Lead' pamphlet.

A security instrument by which a borrower (mortgagor) pledges real property to a lender (mortgagee) while keeping title.

The borrower's written promise to repay the loan — the evidence of the debt.

Ohio is a lien-theory state: the borrower keeps title; the lender holds a lien and uses judicial foreclosure.

A court-supervised foreclosure ending in a sheriff's sale — Ohio's method for enforcing a defaulted mortgage.

A loan not insured or guaranteed by the government; PMI is typically required when LTV exceeds 80%.

A loan insured by the Federal Housing Administration, allowing lower down payments.

A loan guaranteed by the Department of Veterans Affairs for eligible veterans, often with 0% down.

Loan amount ÷ value (or price); a higher LTV means a smaller down payment and more lender risk.

Insurance a conventional borrower pays when the LTV exceeds 80%, protecting the lender.

Prepaid interest paid at closing to lower the rate; one point equals 1% of the loan amount.

The Real Estate Settlement Procedures Act — requires settlement-cost disclosures and bans kickbacks.

The Truth in Lending Act — requires lenders to disclose the cost of credit, including the APR.

A RESPA/TILA disclosure of estimated loan terms and costs, due within 3 business days of application.

A final statement of loan terms and closing costs the borrower must receive at least 3 business days before closing.

A court judgment for the unpaid balance when a foreclosure sale brings less than the debt.

A neutral third party (often a title company in Ohio) that holds funds and documents and closes the transaction.

The seller customarily pays Ohio's conveyance fee ($1/$1,000 state + up to $3/$1,000 county) to the county auditor at transfer.

Commission = sale price × commission rate.

Price = net ÷ (1 − commission rate). A $282,000 net at 6% = $282,000 ÷ 0.94 = $300,000.

Area = length × width (in feet, giving square feet).

Divide square feet by 43,560 to get acres.

1 acre = 43,560 square feet; 1 mile = 5,280 feet; 1 section = 640 acres.

LTV = loan ÷ value. An 80% LTV on a $300,000 home is a $240,000 loan.

Tax = assessed value × rate; convert mills by multiplying by 0.001 (18 mills = 0.018).

Fee = (sale price ÷ 1,000) × rate. At the full $4/$1,000, a $250,000 sale = 250 × $4 = $1,000.

Value = net operating income ÷ capitalization rate. $96,000 NOI ÷ 0.075 = $1,280,000.

Cap rate = NOI ÷ value. $135,000 NOI ÷ $1,500,000 = 9%.

Split annual taxes by the days each party owns the property; the seller is charged through the closing date.

One point = 1% of the loan. 1.5 points on a $425,000 loan = $425,000 × 0.015 = $6,375.

Divide the price by the unit (e.g., $500), then multiply by the per-unit rate.

Prepaid rent is split by the days; a tenant's unused days are credited to the buyer at closing.

Income = Rate × Value; rearrange to find any one when two are known (the IRV/T-bar).

Percent change = (new − old) ÷ old. A $20,000 gain on a $200,000 cost is a 10% profit.