Ohio REALTORS testify as House weighs changes to real estate licensing laws
By Stephen Ciacchi, Ohio REALTORS Director, Public Affairs
Brian Whitta, Vice Chair of Ohio REALTORS Legislative Steering Committee, testified before the Ohio House State and Local Government Committee yesterday voicing the Association’s concern surrounding a proposal to reduce pre-licensing education hours for real estate professionals.
Every six years the legislature reviews occupational licensing requirements. This session lawmakers are reviewing the licenses issued by the Division of Real Estate and Professional Licensing. The House State and Local Government Committee recently issued its recommendations, which would substantially reduce pre-licensing education hours for both salespeople and brokers. The committee also recommended removing the requirement for education providers to provide college credits and eliminating the associate degree obligation for brokers.
Whitta noted in his testimony that:
“Real estate transactions are complex procedures involving purchasing, selling, or leasing properties with layers of complicated requirements. In addition to following federal, state, and local laws, proposals need to describe the property accurately and legally, identify clear title guarantees, and contain contingency clauses covering topics from damage found on the property to financial concerns. Real estate professionals are responsible for reviewing legally binding contracts, home inspections, obtaining financing, and successfully completing the closing of a real estate transaction, which is why education and expertise are essential to successfully serving our clients.”
The committee is recommending Ohio education hours coincide more closely with surrounding states. While testifying he stated “I do want to express our concerns surrounding reducing the hours of pre-licensing education. Educational requirements for real estate practitioners vary by state. While our surrounding states may require fewer hours of initial education, other states like Texas (180 hours for real estate salespeople) require far more.”
Whitta closed his testimony by expressing that “Ohio should not jeopardize the public’s best interest in an effort to cut training for such a vital profession. Instead, it should work with industry leaders to ensure newly licensed professionals are adequately prepared to lead their clients through what will likely be the most expensive and often complex purchase they will ever make. “
The committee will weigh additional revisions and incorporate its final recommendations into HB 238, which the full House of Representatives will likely pass before the end of the year. The Ohio Senate will then conduct its own review before passing the final version of HB 238 by the end of 2024.
