Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Real Estate Regulation topic
No spam. Unsubscribe anytime.
Sponsors say bill would require disclosures to curb predatory real‑estate wholesaling
Summary
Senators told the committee SB 155 would require wholesalers to disclose assignment intentions and bar binding residential contracts until homeowners sign a disclosure, aiming to protect vulnerable sellers from deceptive practices.
Senators identified in the transcript as sponsor witnesses described Senate Bill 155 as a reintroduction of prior legislation to increase transparency and protect homeowners from predatory real‑estate wholesaling.
Senator (recorded) Brenner said the bill would "protect Ohioans from real estate wholesaling, a predatory practice that preys on vulnerable homeowners and robs them from equity in their homes," and defined wholesaling as entering a contract and assigning it to a third‑party investor for an assignment fee. The sponsors said the bill would require wholesalers to disclose their intent to both the homeowner and end buyer, prohibit a wholesaler acting as grantee from entering a binding contract until the record owner has signed the disclosure, and require escrow or closing agents to return earnest money to the record owner within 30 days if the wholesaler violates disclosure rules.
Senator Ingram (as recorded) added that Ohio's Division of Real Estate and Professional Licensing has received reports of increasing wholesaling activity involving predatory contracts and misleading sales tactics. Proponents argued the disclosure requirement would make transactions transparent and allow homeowners to understand whether the party they contract with intends to assign the agreement rather than buy the property.
Committee members asked about overlap with a House bill (HB 287) and whether the two measures differ. Sponsors characterized SB 155 as a narrower disclosure‑focused approach intended to avoid unduly restricting legitimate transactions. Representatives raised legal questions about contract law and assignment clauses; sponsors responded that the bill targets residential wholesaling practices rather than commercial assignment customs.
No formal vote occurred; sponsors expressed willingness to coordinate with House legislators and to consider amendments to reconcile differences between similar measures.
