Ralph Mantica President at Ohio REALTORS | Facebook Website
Ralph Mantica President at Ohio REALTORS | Facebook Website
The Ohio Senate has unanimously passed Senate Bill 155, aimed at enhancing consumer protections in the real estate sector by addressing deceptive wholesaling practices. Wholesaling involves an individual entering into a purchase agreement with a homeowner and then assigning that contract to a third-party investor for profit. The practice becomes problematic when wholesalers misrepresent themselves as genuine buyers, conceal their intentions, or offer prices significantly below market value without fully informing homeowners.
Senate Bill 155 seeks to bring transparency and fairness to this practice. It mandates that wholesalers provide clear written disclosures to homeowners before any contracts are signed. These disclosures must include statements indicating that the individual is a wholesaler who does not represent the homeowner's best interests, explanations of their intent to assign the contract for profit without homeowner consent, notices about potential fees charged to third parties, warnings that offer prices may be below market value, and recommendations for homeowners to consult legal counsel.
Failure to provide these disclosures would be considered a deceptive act under Ohio law and violate the Consumer Sales Practices Act. In such cases, homeowners would have the right to cancel contracts, recover any earnest money paid, and report violations to the Ohio Attorney General's Office.
The passage of SB 155 marks significant progress in protecting consumers in Ohio's real estate market by ensuring they have necessary information when selling property. The bill will now proceed to the Ohio House of Representatives where further advocacy will continue from groups like the Ohio REALTORS government affairs team.
"Learn more about SB 155 below:
Ohio REALTORS Testify in Support of Legislation Regulating Real Estate Wholesaling
Senate Bill 155 Receives First Hearing in Senate Judiciary Committee
Legislation Introduced to Increase Transparency in Real Estate Wholesaling
136 General Assembly | Senate Bill 155"
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