Ohio Senate Passes Brenner Bill Combating Real Estate Wholesaling

COLUMBUS—The Ohio Senate passed Senate Bill 155, sponsored by Senators Andrew Brenner (R-Delaware) and Catherine Ingram (D-Cincinnati), to require real estate wholesalers to make certain disclosures to property owners before entering into a contract that conveys an interest in residential real property.

"Real estate wholesaling targets some of Ohio's most vulnerable homeowners through predatory contracts, misleading sales tactics, and clouding titles to properties," said Brenner. "This legislation increases the transparency surrounding the wholesaling process, by requiring wholesalers to disclose to the homeowner and end buyer their true
intentions. This bill provides assurance to homeowners that they will be making a fully informed decision when they enter into a contract to sell their property."

Senate Bill 155 requires real estate wholesalers to disclose to homeowners that the wholesaler is not representing them, that the wholesaler intends to assign their rights to the contract for a profit, and that they may be offering below fair market value for their home. The bill allows property owners to cancel a contract with a wholesaler that fails to make those disclosures, without penalty, any time before the close of escrow and requires the disbursement of any earnest money paid within 30 days after such cancellation. Numerous other states have passed similar legislation to prohibit this type of predatory practice.

The bill now heads to the Ohio House for further consideration.  

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