In an opinion decided on September 25, 2018, the Ohio Supreme Court, with Chief Justice Maureen O’Connor writing for the majority, concluded “that an oil-and-gas lease falls within the definition of “real estate” in R.C. 4735.01(B), the negotiation of which requires a real-estate-broker’s license pursuant to R.C. 4735.01(A) and 4735.02(A).”
In its analysis, the Court discussed that some activities are excluded from the broker’s licenses requirement. It noted that an attorney is not considered a real-estate broker when engaging in activities listed in R.C. 4735.01(A) if the attorney is acting “in the performance of the attorney’s duties.” See R.C. 4735.01(I)(1)(d).
Practice Tip: Attorneys who represent clients regarding oil-and-gas leases and work with oil-and-gas land professionals will want to be sure that those professionals are in compliance with the requirement to have a real-estate-broker’s license pursuant to R.C. 4735.01(A) and 4735.02(A). Click here to read Dundics v. Eric Petroleum Corp, Slip Opinion No. 2018-Ohio-3826.
If you have any questions, please feel free to contact OBLIC.
Gretchen Koehler Mote, Esq.,
Director of Loss Prevention