Harding v. Ohio Real Estate Comm.

2023 Ohio 3138, 224 N.E.3d 86
Ohio Court of Appeals·Decided September 1, 2023·No. L-23-1010·Published·Cited by 1 cases

Opinion

IN THE COURT OF APPEALS OF OHIO SIXTH APPELLATE DISTRICT

LUCAS COUNTY

Angela Harding Court of Appeals No. L-23-1010 Appellant Trial Court No. CI0202203138 v. Ohio Real Estate Commission DECISION AND JUDGMENT Appellee Decided: September 1, 2023

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David L. Petitjean, for appellant

David Yost, Ohio Attorney General and Elizabeth S. Fligner, Senior Assistant Attorney General, for appellant.

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MAYLE, J.

{¶ 1} Appellant, Angela F. Harding, appeals from a judgment of the Lucas County Court of Common Pleas affirming an adjudication order by appellee, the Ohio Real Estate Commission (“OREC”), that found Harding violated Chapter 4735 of the Ohio Revised Code. We affirm.

I. Background

{¶ 2} Harding holds a real estate broker’s license with the Ohio Department of Commerce, Division of Real Estate and Professional Licensing (“the Division”).

{¶ 3} In October of 2013, Harding entered into a land contract with Breck Properties Ltd. for the purchase of property located at 5012 Maryhill Road in Sylvania, Ohio. Kathryn Long is the sole shareholder of Breck Properties. The property was intended to serve as Harding’s primary residence.

{¶ 4} The purchase price of the property was $113,900, and Harding paid Long an initial down payment of $7,500. Under the terms of the land contract, Harding was required to pay the balance of $106,400 at seven percent interest over 30 years, through a monthly payment of $707.88. Upon payment in full of all sums owed, Long, acting on behalf of Breck Properties, agreed to deliver to Harding “a good and sufficient warranty deed conveying title to the land.”

{¶ 5} On November 7, 2016, Long filed a complaint against Harding with the Division. Long alleged that Harding had listed the property for sale without her consent, in violation of real estate licensing laws and the land contract.

{¶ 6} Following an investigation, the Division sent Harding a notification that it had found “reasonable and substantial evidence of acts” in violation of R.C. 4735.18 (“Grounds for suspension or revocation of license”) and that, if the violations were proven, disciplinary action could be taken against Harding’s license. Specifically, the complaint alleged that,

You, Angela Faye Harding, a licensed principal real estate broker * * * did the following sometime between on or about June 26, 2016 and on or about July 11, 2016, involving the property at 5012 Maryhill Road, Sylvania, Ohio (subject property):

Despite entering into a land contract for the subject property, dated October 25, 2013 (land contract), as a buyer, which specifically prohibited the transfer of your interest in the land contract to another party without prior written consent by Breck Properties, Ltd. (seller), you attempted to sell the subject property with a sign in the subject property’s yard or through an advertisement in the multiple listing service with [listing agent]

* * *, without prior written consent of the seller. This conduct constitutes a violation of Ohio Revised Code Section 4735.18(A)(17) or Ohio Revised Code Section 4735.18(A)(6), misconduct as that section incorporates Section, Article I of the Canons of Ethics for the Real Estate Industry, a failure to maintain high standards of conduct in a licensee’s personal affairs.

{¶ 7} A hearing was held before a hearing examiner on July 30, 2021. Three witnesses testified: Investigator George Burton, Long, and Harding.

{¶ 8} According to Long, Harding asked her, in June of 2016, if she (Harding)

could “list the property and sell it.” When asked what she would do with any profits from the sale, Harding said that she would pay off the remaining balance owed to Long and “keep” the rest. Long told Harding that she could “[a]bsolutely not” list the property because “[i]t wasn’t hers to sell.”

{¶ 9} The conversation caused Long to “wonder * * * what [Harding] was up to.”

And so, about a week later, in July, “[Long] drove past the house” and saw a real estate sign in the yard. Long’s testimony on this point conflicted with her previous claim, made in her “Real Estate Complaint Form,” in which she specified that she “looked up [the] property on line and found [that Harding had] listed it.” According to the complaint, Long “sent [her] husband to the property to verify if there was a sign in the yard and he took a picture.” (Emphasis added.)

{¶ 10} In any event, the listing agent identified on the yard sign was Sarah Ford of Key Realty. Long went “directly to the real estate agen[cy]” and told someone there, “I own [the property] myself.” Long was told that Harding had taken the property “off the market as of June 29th,” notwithstanding that the sign remained in the yard. Long demanded that the agency “get that sign out of my yard” and gave them “til noon.” Later that day, a broker with Key Realty called Long to apologize and reported that “they were duped as well.”

{¶ 11} During Harding’s testimony, she denied having a conversation with Long, or asking for permission from her to list the property. Harding testified that, before listing it, she consulted with her attorney, who explained that she had an “equitable interest” in the property and “because [she] had an equitable interest,” she did not need Long’s permission to list it. Harding also understood that her right to “transfer interest”

in the property to a third party was subject to Long being “paid off [first] * * * which would be done at closing.” Before listing the property, Key Realty “review[ed] all the documentation.”

{¶ 12} The listing with Key was in effect from June 28, 2016 until July 11, 2016, when Harding “pull[ed] the listing.” Harding explained that she pulled the listing because it was “an overwhelming time” in her life. “Shortly after” that, Harding learned from Key Realty that Long had complained about the sign, but Long never personally contacted her to discuss it. Harding testified that she believes she “acted with full ethics from the beginning of this transaction to the end, including [when she] list[ed] the property.”

{¶ 13} Harding and her husband decided to terminate the land contract and return the property to Long. On November 2, 2016, the parties executed a “Cancelation of Land Contract” and a mutual release. Five days later, on November 7, 2016, Long filed a complaint against Harding, giving rise to the instant case.

II. The Report and Recommendation of the Hearing Officer

{¶ 14} The hearing examiner issued a Report and Recommendation on October 13, 2021, which included the following findings of fact and conclusions of law:

Both Harding and Long had an ownership interest in the property, Harding as “equitable owner” and Long as “legal owner.”

Harding entered into a listing agreement with Realtor Sarah Ford, of Key Realty, to sell the Maryhill property, and a “for sale” sign was placed on the property. The listing date was June 28, 2016.

Harding, as an equitable owner, did not transfer any interest or title in the subject property by entering into the listing agreement with Key Realty.

The listing agreement gave no equitable interest in the land contract or the property. “The act of entering into [the Exclusive Right to Sell Listing]

Agreement to list the property for sale was within the ownership rights of [Harding].”

Harding was represented by legal counsel “at all stages during this process and received legal advice regarding her equitable interest.” Based upon her attorney’s advice, Harding believed that she “was able to list and attempt to sell” the property to satisfy the amount owed under the land contract.

Long, whose “credibility [was] questionable,” withheld her consent for the sale of the property, “at least in part” because Harding “would be able to keep the excess profits” if the property was sold.

Harding, “whose testimony was credible, was represented by an attorney and decided to sell the property to satisfy the balloon payments she owed to complete the land contract.”

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Harding v. Ohio Real Estate Comm., 2023 Ohio 3138, 224 N.E.3d 86 (Ohio Ct. App. 2023).

2023 Ohio 3138 (Harding v. Ohio Real Estate Comm.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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