North Columbus News

Ohio REALTORS have taken a stand in support of House Bill 287, advocating for increased protections against predatory real estate wholesaling practices. The testimony was presented before the House Development Committee by Seth Task, a past president of Ohio REALTORS, and member Brian Bainbridge.

House Bill 287 is designed to enhance consumer protection by mandating that real estate wholesalers disclose their intent to assign contracts to homeowners. This measure seeks to eliminate misleading marketing tactics and ensure transparency so that sellers are aware of who they are dealing with when approached by wholesalers.

During his testimony, Task emphasized the deceptive strategies often employed by wholesalers, such as posing as buyers and making false promises while flipping contracts for profit at the seller's expense. He recounted a personal story involving an elderly woman who was misled by a wholesaler pretending to be a cash buyer. She ended up facing financial and emotional distress after the wholesaler failed to follow through on his promises.

Task stated: “On a personal note, I knew an elderly woman who was taken advantage of by a real estate wholesaler who presented himself as a cash buyer offering a no-contingency deal. She trusted him, signed the contract, and made major life decisions based on that promise—including entering into a lease and moving out of her home. But the wholesaler never posted the earnest money, never intended to buy the property himself, never made any mention of attempting to resell it or explain the assignability clause in the contract, and instead tried to sell the property and assign the contract at a much higher price. When he couldn’t find a new buyer, he simply disappeared, leaving her without the sale she was counting on, stuck in a lease she couldn’t afford, and with emotional and financial stress she never expected. This kind of misleading behavior is exactly why we need safeguards in place to protect Ohio’s homeowners.”

Ohio REALTORS are urging lawmakers to quickly pass this legislation to maintain fairness in the housing market and prevent exploitation of vulnerable homeowners through unchecked deceptive practices. A similar bill (Senate Bill 155) recently passed unanimously in the Senate and awaits consideration in the Ohio House.

For more details about HB 287:

136 General Assembly | House Bill 287