Ohio has enacted a major change to how real estate wholesaling must be conducted. Ohio Revised Code §5301.95, effective March 2, 2026, establishes strict disclosure requirements, defines who qualifies as a wholesaler, and gives homeowners new legal protections. This law—created through Senate Bill 155—brings transparency to a fast‑growing segment of the real estate market.
🏡 What the New Law Covers
The statute applies to residential real property, defined as property with one to four dwelling units. It also formally defines a wholesaler as any person or entity that:
- Enters into a purchase contract for residential property with the intent to assign or novate the contract, and
- Expects to receive a fee, commission, or other valuable consideration.
The law applies whether the wholesaler is acting as the grantee or grantor, even if they never take legal title.
Exemptions
The following transactions are not considered wholesaling:
- Assignments between individuals related by blood
- Transfers within a parent company, subsidiary, affiliate, or controlled group
📘 Full text of Ohio Revised Code §5301.95:
📄 Mandatory Disclosure Requirements
Before entering into any binding contract, wholesalers must provide a separate, bold, 12‑point font disclosure form to the property owner. This disclosure must:
- Be separate from the purchase agreement
- Be signed and dated by both parties
- Clearly state that the wholesaler does not represent the seller
- Explain that the wholesaler may assign the contract for profit
- Inform the seller that the purchase price may be below market value
- Encourage the seller to seek legal or professional advice
📘 Disclosure language in ORC 5301.95(B): The exact required language is included in the statute.
⚖️ Seller Protections and Legal Remedies
If a wholesaler acting as the grantee fails to provide the required disclosure:
- The seller may cancel the contract at any time before closing, without penalty.
- Any earnest money must be returned to the seller within 30 days.
- The violation is considered an unfair or deceptive act or practice under the Ohio Consumer Sales Practices Act (CSPA).
- The seller gains a cause of action and may pursue damages.
- The Ohio Attorney General may take enforcement action.
📘 Ohio Consumer Sales Practices Act (ORC 1345.02):
https://codes.ohio.gov/ohio-revised-code/section-1345.02
📘 Consumer remedies under ORC 1345.09:
https://codes.ohio.gov/ohio-revised-code/section-1345.09
These protections give homeowners significant leverage and create strong incentives for wholesalers to comply.
🔍 Why Ohio Passed This Law
Wholesaling has grown rapidly in Ohio markets such as Columbus, Cleveland, and Cincinnati. While many wholesalers operate ethically, the industry has faced criticism for:
- Lack of transparency
- Sellers misunderstanding the wholesaler’s role
- Below‑market offers presented without context
- Limited consumer protections
Senate Bill 155 aims to bring clarity, transparency, and fairness to these transactions. It does not ban wholesaling—it simply regulates it.
📘 Senate Bill 155 – Legislative history and text:
https://www.legislature.ohio.gov/legislation/136/sb155
🧭 What This Means for Wholesalers
Wholesalers operating in Ohio must now:
- Present the statutory disclosure before any binding agreement
- Use the exact language required by law
- Keep signed copies for compliance
- Understand that violations may void contracts and trigger legal action
- Recognize that wholesaling now falls under consumer protection enforcement
This law raises the bar for professionalism and documentation.
🏠 What This Means for Homeowners
Homeowners approached by wholesalers now benefit from:
- A clear explanation of the wholesaler’s role
- Transparency about assignment and profit
- Encouragement to seek legal advice
- The right to cancel if disclosures weren’t provided
- Legal remedies if misled
This levels the playing field for sellers who may not be familiar with wholesaling practices.
📌 Final Thoughts
Ohio’s new wholesaling law marks a major shift in how real estate assignments must be handled. By requiring transparency and strengthening consumer protections, the state ensures that homeowners fully understand the agreements they enter—and that wholesalers operate with clarity and integrity.
