Ohio Passes Landmark Bill Regulating Real Estate Wholesaling
By: Andrew Huffman, VP of Legislative Affairs
This week, the Ohio Legislature passed a bill attempting to crack down on the unregulated practice of real estate wholesaling. The legislation, which has been a priority for Ohio REALTORS® for years, marks the first time Ohio has ever attempted to protect consumers from the predatory practice of wholesaling in the real estate industry.
Senate Bill (SB) 155 was first passed by the Ohio Senate in June with unanimous support. The House then approved it in October, also with unanimous support. The measure now awaits action by Governor DeWine.
The legislation, introduced by Senators Andy Brenner (R-Delaware) and Katherine Ingram (D-Cincinnati), would require wholesalers to provide a new disclosure to the property owner before they can enter a contract to transfer the property. The disclosure would clearly identify the party as a wholesaler and notify the homeowner that the wholesaler is not representing them in the transaction. The disclosure would also state that the homeowner is entitled to seek advice from an attorney or a real estate professional prior to entering into a contract with the wholesaler. Further, the disclosure informs the homeowner about the process of real estate wholesaling, that the wholesaler may assign the contract to a third party for a profit, and that the homeowner may be receiving below-market value for the property.
A property owner who has not signed the disclosure could cancel the contract at any time before closing. Further, a wholesaler that fails to have the disclosure signed could be charged with an unfair or deceptive practice under the Consumer Sales Practices Act. The Attorney General would be responsible for enforcing the requirements of the law.
Ohio REALTORS® played a leading role in advancing this legislation, working closely with lawmakers throughout the legislative process. Several REALTOR® members provided testimony before House and Senate committees, sharing firsthand accounts of how unregulated wholesaling has harmed consumers and distorted the real estate market.
In addition to the sponsors of SB 155, State Representatives Marilyn John (R-Mansfield) and Josh Williams (R-Toledo) were instrumental in ensuring the swift passage of this important legislation. Joining Ohio REALTORS® in support of the bill were the following organizations: Ohio Land Title Association, Arega Agency on Aging District 5, Ohio Real Estate Investors Association, Zillow, Sluss Realty, Ohio Recorders’ Association, Ohio Mortgage Bankers Association, County Treasurers Association, and AARP.
Once signed by Governor DeWine, the legislation will take effect in 90 days. We will provide additional information once the legislation is passed on what these changes mean for the real estate industry and how they will protect consumers from the predatory practice known as real estate wholesaling.
Learn more about SB 155 below:
REALTORS® Testify Before House Development Committee in Support of Senate Bill 155
Breaking: Ohio Senate Unanimously Passes Senate Bill 155
136 General Assembly | Senate Bill 155
Andrew Huffman
Vice President, Legislative Affairs
Serves as the primary lobbyist on state legislative and regulatory issues for Ohio REALTORS®. He is responsible for overseeing the Association’s legislative, regulatory, and political advocacy efforts and coordinating with the Association’s Legislative Steering Committee on reviewing and determining policy positions.
Andrew serves as staff liaison to the Legislative Steering Committee, Enlarge Legislative Committee, Issues Mobilization Committee, and coordinates with the Assistant Vice President of Political Affairs on managing the SPC Advisory Board and RPAC Trustees Committee.
Learn more about Andrew & his role.
