North Columbus News

Senate Bill 155 was presented before the Senate Judiciary Committee for its first hearing on April 30, 2025. The committee, chaired by Senator Nathan Manning, heard from sponsors of the bipartisan bill, which seeks to increase transparency in real estate wholesaling across Ohio.

Senator Andrew Brenner and Senator Catherine Ingram sponsored the bill. Wholesaling involves entering a purchase agreement with a homeowner and then assigning the contract to a third-party investor for profit. Though legal, the practice has been criticized for deceptive tactics, including misleading homeowners about the wholesaler's role and making offers significantly below market value.

During the hearing, Senator Ingram highlighted concerns, stating, "Wholesalers also mislead homeowners into believing that the wholesaler is the one purchasing the property; however, the wholesaler intends to sell the contract for a profit." She further noted the lack of repercussions for wholesalers if they fail to secure an investor for the contract, as they can back out without closing.

SB 155 proposes that wholesalers must disclose specific information to homeowners before signing a contract. These disclosures include stating they are wholesalers and not homeowner representatives, advising legal counsel, indicating intent to assign the contract, explaining assignability without consent, mentioning potential third-party fees, and acknowledging the offer might be below market value.

Senator Brenner emphasized the importance of disclosure, saying, “This disclosure is vitally important as it informs the homeowner 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 Senate Judiciary Committee is set to hear proponent testimony as the next step. The bill's progress can be followed online.