Delaware County Review

The Ohio Senate has approved Senate Bill 155, which aims to regulate real estate wholesaling practices. Sponsored by Senators Andrew Brenner and Catherine Ingram, the bill mandates that real estate wholesalers must disclose specific information to property owners before entering into contracts involving residential properties.

Senator Brenner explained the motivation behind the bill: "Real estate wholesaling targets some of Ohio's most vulnerable homeowners through predatory contracts, misleading sales tactics, and clouding titles to properties." He emphasized that the legislation seeks to enhance transparency in the wholesaling process by requiring wholesalers to reveal their true intentions to both homeowners and end buyers. "This bill provides assurance to homeowners that they will be making a fully informed decision when they enter into a contract to sell their property," he added.

The proposed law requires wholesalers to inform homeowners that they do not represent them, intend to assign contract rights for profit, and may offer below market value for homes. It also allows property owners to cancel contracts without penalty if disclosures are not made, up until escrow closes. Earnest money must be refunded within 30 days of cancellation. Similar laws have been enacted in several other states.

The bill now moves forward for consideration in the Ohio House.