Ohio professionals who hold both a real estate agent license and a loan originator license must follow strict regulations to act in both roles during a real estate transaction. While this dual authority can streamline the process for clients, state law requires these professionals to disclose any financial relationships to prevent conflicts of interest.
Professionals must inform clients about any business relationship between their roles as loan originators and real estate agents. Ohio Revised Code 1322.075 mandates that they provide a Business Relationship Disclosure Notice, which reveals any financial benefits they may receive, such as ownership in a referred settlement service provider or other incentives. The notice also lists the range of charges for services and reminds clients that they are free to shop around for better rates.
These disclosures must reach the client at the time of referral, ensuring they have the information before proceeding with the transaction. Ohio law applies this requirement statewide, and professionals must retain written copies of the disclosures for four years. By enforcing these regulations, Ohio aims to ensure transparency and help clients make informed decisions, especially when professionals stand to benefit from the services they recommend.
Ohio Business Relationship Disclosure