Legislature mandates disclosure for residential real estate wholesalers

On March 26, 2025, the Ohio Legislature introduced Senate Bill 155, a significant piece of legislation aimed at regulating the practices of real estate wholesalers in residential property transactions. The bill seeks to address growing concerns regarding transparency and fairness in the real estate market, particularly for homeowners who may be vulnerable to predatory practices.

At the core of Senate Bill 155 is a requirement for wholesalers—individuals who enter into contracts to purchase properties with the intent to sell or assign those contracts to third parties—to provide a clear disclosure statement to property owners. This statement must be signed and dated by both the property owner and the wholesaler before any binding contract can be executed. The disclosure emphasizes that the wholesaler is acting independently and does not represent the property owner, thereby encouraging homeowners to seek legal advice before proceeding with any agreements.

The bill also stipulates that wholesalers may enter into contracts at prices below market value, which can be a point of contention. Critics argue that this practice could exploit homeowners in distress, while supporters contend that it provides opportunities for buyers looking for affordable housing options. The legislation aims to ensure that homeowners are fully informed of the implications of selling their property to a wholesaler, including the potential for profit-driven motives that may not align with the owner's best interests.

Debate surrounding Senate Bill 155 has highlighted the balance between fostering a competitive real estate market and protecting consumers from potential exploitation. Some lawmakers express concerns that overly stringent regulations could stifle the wholesaling industry, which plays a role in revitalizing neighborhoods and providing affordable housing solutions. Others argue that without proper oversight, homeowners may face undue risks.

The implications of this bill extend beyond individual transactions; they touch on broader economic and social issues, including housing affordability and market integrity. As the bill progresses through the legislative process, stakeholders from various sectors, including real estate professionals, consumer advocates, and legal experts, are closely monitoring its developments.

In conclusion, Senate Bill 155 represents a critical step toward enhancing transparency in the real estate market in Ohio. As discussions continue, the outcome of this legislation could reshape the landscape of residential property transactions, impacting both homeowners and wholesalers alike. The next steps will involve further debates and potential amendments as lawmakers seek to find a balance that protects consumers while allowing for a dynamic real estate market.