Pacella v. Ohio Dept. of Commerce, Unpublished Decision (6-30-2003)
Pacella v. Ohio Dept. of Commerce, Unpublished Decision (6-30-2003)
Opinion of the Court
OPINION
{¶ 1} Appellant, Ohio Department of Commerce, Division of Real Estate and Professional Licensing (the "division"), appeals from the October 24, 2002 judgment entry of the Franklin County Court of Common Pleas in favor of appellee, Robert A. Pacella. The court of common pleas reversed the March 26, 2002 decision of the Ohio State Real Estate Commission ("commission") that found appellee committed misconduct in violation of R.C.{¶ 2} The parties are in agreement on the following facts: appellee is a licensed real estate sales person in the state of Ohio. Appellee entered into an exclusive listing agreement to sell real estate known as 1110 Bermath Parkway, Toledo, Ohio. On April 8, 2001, appellee provided the seller of real estate the agency disclosure statement ("disclosure") pursuant to R.C.
{¶ 3} On December 20, 2001, the division charged appellee with violating R.C.
{¶ 4} "A licensee acting as seller's agent shall provide the seller an agency disclosure statement * * * prior to marketing or showing the seller's property."
{¶ 5} Appellee waived a formal hearing and the matter was submitted to a division hearing officer on stipulations, exhibits and appellee's brief. The hearing officer considered whether appellee's failure to secure the signature of the seller on the disclosure constituted a violation of the statute. On February 11, 2002, the division issued a decision that interpreted the presentment clause in R.C.
{¶ 6} "(A) A licensee who established the agency relationship with the seller is required to provide the seller with an agency disclosure statement prior to any marketing or any showing of the seller's property * * * unless the disclosure was previously provided by a licensee within the same brokerage.
{¶ 7} "(B)(1) If a purchaser or seller declines to sign an agency disclosure form that is presented * * * the licensee shall note the following on the bottom of the form:
{¶ 8} "(a) The party(ies) to whom the form was presented;
{¶ 9} "(b) The date and time the form was presented;
{¶ 10} "(c) The fact that the party(ies) declines to sign the form; and,
{¶ 11} "(d) The reason the party(ies) declines to sign the form if known."
{¶ 12} The division concluded appellee's conduct violated the statute because the disclosure contained neither the signature of the seller, nor a notation of rejection, dated prior to the marketing and showing of the real estate.
{¶ 13} On March 26, 2002, the commission adopted the decision of the hearing officer and ordered a penalty in the form of a $100 fine and three hours of continuing education. On April 9, 2002, appellee filed a timely notice of appeal with the court of common pleas pursuant to R.C.
{¶ 14} On October 3, 2002, the court of common pleas issued an opinion reversing the commission's order and finding that appellee's delivery of the disclosure to the seller complied with plain language of R.C.
{¶ 15} "1. The lower court erred when it failed to interpret R.C.
{¶ 16} "2. The lower court erred in determining that the order of the Ohio Real Estate Commission was not supported by reliable, probative and substantial evidence and was not in accordance with law."
{¶ 17} Appellant's assignments of error are interrelated and will be addressed together. Appellant argues the court of common pleas erred by not interpreting R.C.
{¶ 18} "The superintendent of real estate, with the approval of the Ohio real estate commission, shall establish by rule the agency disclosure statement, which shall specify the duties of a licensee in a real estate transaction pursuant to this chapter. The agency disclosure statement shall contain a place for the licensee and the parties to the transaction to sign and date the statement * * *.
{¶ 19} "* * *
{¶ 20} "[T]he signature of the client indicates the client consents to the agency relationship and that if the client does not understand the agency disclosure statement, the client should consult an attorney."
{¶ 21} In an administrative appeal, pursuant to R.C.
{¶ 22} A court's paramount concern in construing a statute is the legislative intent as determined by a review of the statute's language and purpose. Covington v. Indiana Dept. of Natural Resources, Franklin App. No. 01AP-1034, 2002-Ohio-2874, citing State ex rel. Watkins v. Eighth District Court of Appeals (1998),
{¶ 23} A review of the statute shows R.C.
{¶ 24} R.C.
{¶ 25} These sections constitute two well-delineated instances when the agent is required to obtain a signature and a date from a purchaser. Absent from the statute are any comparable requirements relating to the seller. The General Assembly could have easily inserted language into R.C.
{¶ 26} The division contends that R.C.
{¶ 27} "It is well settled that an administrative agency has only such regulatory power as is delegated to it by the General Assembly. Authority that is conferred by the General Assembly cannot be extended by the administrative agency." D.A.B.E., at 259. Administrative rules may not formulate public policy, but rather are limited to developing and administering policy already established by the General Assembly. Id. "[I]mplied power is only incidental or ancillary to an express power, and, if there be no express grant, it follows, as a matter of course, that there can be no implied grant." Id., quoting State ex rel. A. Bentley Sons Co. v. Pierce (1917),
{¶ 28} An interpretation of Ohio Adm. Code
{¶ 29} The statute is a product of legislative policy-making that required the balancing of economic, political and social interests. As a result of this process, the General Assembly delegated specific authority to the division to create a disclosure form that declared the duties of agents involved in real estate transactions pursuant to R.C.
{¶ 30} Therefore, for the foregoing reasons, we find the court of common pleas did not err when it reversed the commission's order because the order was not in accordance with law. We overrule appellant's assignments of error and affirm the judgment of the Franklin County Court of Common Pleas.
Judgment affirmed.
BROWN and WATSON, JJ., concur.
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