Breaking: Ohio Senate Unanimously Passes Senate Bill 155
By Anastasia Kotkovskaya, Manager, Advocacy and Research
With a unanimous vote, the Ohio Senate has taken a decisive step to strengthen consumer protections in real estate by passing Senate Bill (SB) 155, a bill that addresses deceptive wholesaling practices.
Wholesaling is a legal, yet largely unregulated, practice in which an individual enters into a purchase agreement with a homeowner and then assigns that contract to a third-party investor for a profit. The problem arises when a wholesaler poses as a genuine buyer, conceals their true intentions, or makes an offer significantly below market value, all without fully informing the homeowner. They use tactics that specifically target elderly or vulnerable individuals who may not realize they're giving up equity in a deal they don't fully understand.
SB 155 will bring transparency and fairness to this practice by requiring wholesalers to provide clear written disclosure to homeowners before any contract is signed. This disclosure would need to include:
- A statement saying that the individual is a wholesaler who does not represent the best interests of the homeowner
- A clear explanation that the wholesaler intends to assign the contract for profit and can do so without the homeowner's consent
- A notice that a fee may be charged to a third party
- A warning that the offer price may be below the home’s market value
- A recommendation that the homeowner consult legal counsel
Failure to provide this signed disclosure would constitute a deceptive act under Ohio law and a violation of the Consumer Sales Practices Act. In these cases, the homeowner would have the right to cancel the contract, recover any earnest money paid, and report the violation to the Ohio Attorney General's Office.
The passage of SB 155 is a major step forward for consumer protection in Ohio's real estate market and ensures that homeowners have the information they need to make informed decisions when selling their property.
The bill now moves to the Ohio House of Representatives, where the Ohio REALTORS® government affairs team will continue to champion its passage.
Learn more about SB 155 below:
Ohio REALTORS Testify in Support of Legislation Regulating Real Estate Wholesaling
Senate Bill 155 Receives First Hearing in Senate Judiciary Committee
Legislation Introduced to Increase Transparency in Real Estate Wholesaling
136 General Assembly | Senate Bill 155
