Ohio and Kentucky Sign MOU to Recognize Real Estate Licenses Across State Lines
The Ohio Real Estate Commission and the Kentucky Real Estate Commission have signed a Memorandum of Understanding (MOU) that allows real estate professionals licensed in one state to practice in the other without additional licensing hurdles. Under this agreement, each state will recognize the licensing standards of the other, expanding the professional mobility of real estate agents.
This MOU is a direct outcome of Ohio’s Senate Bill 131, which was passed during the 134th General Assembly. This law requires Ohio licensing authorities to recognize out-of-state licenses; however, since the law was enacted, questions have arisen surrounding its interpretation. The new agreement with Kentucky serves to clarify the law’s intent and reestablish clear license recognition between the two states.
Under the new agreement, Ohio and Kentucky’s Commissions recognize the licensing requirements of each state. Specifically:
- A real estate broker, salesperson, or equivalent licensee currently licensed in either state will, upon completion of the licensure or reciprocity requirements of the other Party’s state, be granted a real estate broker, salesperson, or equivalent license.
- The states agree to fully cooperate with regard to any investigation of the conduct of a licensee holding a license in both states and promptly notify the other Party of any disciplinary action taken against a licensee.
- Each state reserves the right to refuse to issue an applicant any license based upon the grounds provided in their respective real estate license laws, rules, or regulations prohibiting such a license.
- Either state may terminate the agreement with 90 days’ notice.
- The states will review and evaluate the performance of the agreement annually.
Ohio has robust real estate licensing requirements, and during the legislative process for Senate Bill 131, Ohio REALTORS® successfully ensured that non-Ohio licensees meet them. Specifically, out-of-state agents must pass the state law portion of the licensing exam before they are issued an Ohio license. Additionally, out-of-state brokers must prove that they have been acting as a broker for at least two years, completed at least 20 transactions as a broker, and passed the Ohio real estate law portion of the broker exam.
The MOU between Ohio and Kentucky went into effect on April 25, 2025. A link to the MOU can be found here: Ohio- Kentucky MOU.
