Ohio REALTORS Testify in Support of Legislation Regulating Real Estate Wholesaling
By Anastasia Kotkovskaya, Manager, Advocacy and Research
This week, Ohio REALTORS® provided strong proponent testimony in support of Senate Bill (SB) 155 to bring transparency to the practice of real estate wholesaling in the state. Ohio REALTORS® Vice President of Government Affairs Andrew Huffman and REALTOR® member Brian Bainbridge delivered in-person testimony before the Senate Judiciary Committee, with additional written testimonies submitted by other REALTORS® who are passionate about protecting Ohioans from this practice.
Real estate wholesaling is a predatory practice that involves entering into a contract to buy a property, only to then assign that contract to an investor for a profit, often without the seller's knowledge of the end buyer or the property’s true value. Wholesaling has been largely unregulated in Ohio and has disproportionately affected elderly and vulnerable homeowners who may not be aware of the actual value of their properties.
During the hearing, Huffman spoke about the importance of requiring clear disclosure in these transactions and establishing accountability for wholesalers operating in the market. He shared with the committee:
Having wholesalers clearly communicate their intentions to the homeowner will prevent deceptive practices and bring much-needed transparency to real estate transactions. Ohioans deserve to sell their homes in an environment free from predatory practices that strip them of equity, and this legislation provides essential protections against bad actors in the real estate industry.
Bainbridge shared his own experiences with wholesalers, stating:
Many of these wholesale deals, the owner is typically older and not fully aware of the market value for their home. In no way is the wholesaler looking out for the best interest of the homeowner. I have seen many scenarios where the homeowner accepts much less than the property is worth in hopes a hungry investor will come along and get it at a discount.
SB 155 proposes to establish necessary disclosure requirements and increase oversight of wholesaling transactions in Ohio, which is essential for protecting our homeowners. Ohio REALTORS® strongly supports this bill and will continue to advocate for its passage as it moves through the Senate committee process.
Learn more about SB 155 below:
Senate Bill 155 Receives First Hearing in Senate Judiciary Committee
Legislation Introduced to Increase Transparency in Real Estate Wholesaling
