Ohio House Bill HB287

Ohio 2025-2026 Regular Session

• Introduced: 5/20/25

Caption

To amend sections 4735.18 and 4735.24 and to enact section 5301.95 of the Revised Code to amend the law related to real estate wholesalers.

Summary

HB287 would regulate real estate wholesaling in Ohio by creating a new statutory section, R.C. 5301.95, that defines a “wholesaler” for residential real property and requires a conspicuous written disclosure to the property owner before a binding contract is signed. The disclosure must explain that the wholesaler is acting on its own behalf, may assign the contract for profit, and that the owner should seek legal advice. The bill also gives the owner a right to cancel the contract before closing if the required disclosure was not provided, and it makes any waiver of these protections void. The bill also amends the real estate licensing law in R.C. 4735.18 and the earnest-money handling rules in R.C. 4735.24. It adds failure to comply with the new wholesaler disclosure law as a disciplinary violation for licensed real estate brokers and salespersons when they are acting as wholesalers of residential real property. It also clarifies when brokers must hold, disburse, or return earnest money, including a new rule for canceled wholesaler transactions and a process for treating certain funds as unclaimed property.

Impact

HB287 would add new consumer-protection requirements to Ohio’s real estate and contract laws, especially for transactions involving residential property wholesalers. It would create a private cause of action and classify violations as unfair or deceptive acts under Ohio’s consumer protection statutes, giving the attorney general enforcement authority and allowing affected property owners to seek remedies available under the Consumer Sales Practices Act. It would also expand the Ohio Real Estate Commission’s disciplinary authority by tying wholesaler compliance to broker and salesperson licensing discipline, and it would modify earnest-money procedures under the real estate code and unclaimed-funds law.

Sentiment

Based on the bill text and the absence of recorded committee testimony or votes, the overall posture appears precautionary and regulatory rather than controversial in the available record. The measure is framed as a consumer-protection bill aimed at increasing transparency in a niche real estate practice. Because there are no transcripts or votes, there is no documented public split in the provided materials, but the structure of the bill suggests support for stronger disclosure rules and oversight of wholesaling transactions.

Contention

The main point of contention likely centers on the bill’s treatment of real estate wholesaling as a practice that can be deceptive if not clearly disclosed. The bill requires wholesalers to identify themselves, warns owners that the wholesaler does not represent them, and allows cancellation and damages for nondisclosure, which may be viewed by wholesalers as burdensome or restrictive. Another possible issue is the bill’s extension of disciplinary exposure to licensed brokers and salespersons who act as wholesalers, as well as its prohibition on waiving the new protections. No specific objections or supporters are identified in the provided committee record.