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Real-estate groups, AARP and investors back HB 287 to curb predatory wholesaling; advocates urge wording changes
Summary
Supporters of HB 287 told the House Development Committee the bill's disclosure requirements would curb deceptive real-estate wholesaling that can target seniors and distressed sellers; some witnesses urged licensing and broader disclosure language and AARP recommended cancellation windows and contact limits.
Seth Task, a past president of Ohio Realtors, told the House Development Committee that House Bill 287 would create disclosure requirements for real-estate wholesalers and help protect homeowners who may be financially distressed or unaware that a wholesaler intends to assign a contract rather than take title.
Task described the practice: "Wholesaling is the practice where a wholesaler presents themselves as a genuine buyer and enters into a contract to purchase a property with no actual intention to buy it themselves," then assigns that contract to a third party for a fee. He said the bill would bring transparency and prevent deceptive tactics that can strip homeowners of equity.
Multiple witnesses offered examples in support. Brian Bainbridge, a Columbus real-estate agent, said wholesalers often bypass required residential property disclosures; he described cases where sellers — frequently older homeowners — were steered into quick deals without full disclosure of defects or market value. Deborah Collins of the Ohio Real Estate Investors Association said wholesalers provide valuable services in certain distressed situations but recommended changing required disclosure language. Collins suggested replacing the bill's phrase that the "owner is advised to seek legal advice" with broader wording advising sellers to seek "legal or professional advice," naming lawyers, CPAs, realtors or benefits liaisons.
Ben Webb, associate state director for AARP Ohio, urged the committee to consider additional consumer protections within the bill's framework. Webb suggested adding a 20–30 day cancellation window for homeowner contracts with wholesalers, limiting follow-up contact by wholesalers after a homeowner says they are not interested, and requiring wholesalers to provide an independent estimate of a property's value at the time of contract.
Committee members asked witnesses whether licensing is a necessary next step. Witnesses said licensing could increase accountability and professionalism among wholesalers but agreed that disclosure changes and enforcement mechanisms should be discussed with bill sponsors and stakeholders.
No formal motion or vote occurred during the hearing. Witnesses were invited to provide any follow-up materials requested by the committee.
