House passes disclosure rules for real estate wholesalers to protect homeowners

The Ohio House voted to approve Senate Bill 155, legislation that requires real estate wholesalers to provide property owners a written disclosure statement prior to entering a residential real-estate contract. The measure passed 92–0 on the House floor.

Supporters described the bill as a targeted consumer-protection measure to address predatory contracts and misleading sales tactics by some investors and wholesalers. "This is a necessary bipartisan protection," Representative Brownlee said, adding that the legislation "will close gaps in the real estate wholesale practice and serve as a pivotal piece of consumer protection." Representative John, a sponsor of the House companion, said the change "increases transparency surrounding the wholesaling process by requiring the wholesalers to disclose their intentions and the fact that they are not buyers."

The bill allows a homeowner to cancel a contract with a wholesaler that fails to make the required disclosure. Sponsors and supporters said the change does not ban wholesaling or limit investment but aims to protect vulnerable homeowners, including older adults and first-time buyers, from losing equity due to opaque transactions.

Senate Bill 155 was reported favorably and received no opponent testimony in committee, according to floor remarks. The bill now goes to the governor for signature or further action.