M
ANSFIELD — When a stranger texts you, mails a postcard, or you see a billboard offering to buy your house, it’s almost always a real‑estate wholesaler. Ohio’s new law, Senate Bill 155, now forces these wholesalers to give homeowners a written disclosure about how they operate before any contract is signed.
The bipartisan bill was introduced in March by Republican Sen. Andy Brenner and Democrat Sen. Katherine Ingram. It passed both chambers unanimously and is awaiting Governor Mike DeWine’s signature. Wholesalers sign purchase agreements but never take title; instead they locate a third‑party buyer—usually an investor—and assign the contract for a higher price. They typically target distressed or undervalued homes, avoiding major repairs that flippers perform. While the practice is legal, critics argue some wholesalers exploit sellers in vulnerable positions with confusing paperwork and inflated offers.
“Wholesalers prey on people at weak moments,” said William Naumoff, attorney at Milestone Title Agency. “They aim to squeeze out as much profit as possible by finding a buyer willing to pay well above what they promised the original homeowner.” Jami Kinton‑Sluss, marketing director at Sluss Realty, testified in favor of SB155 after witnessing seniors and low‑income residents harmed by the unregulated industry. “Seniors and people in lower‑income neighborhoods have been major targets,” she said. “This bill is a great first step toward protecting them.”
Other supporters included Zillow, Ohio REALTORS, the Area Agency on Aging District 5, AARP of Ohio, the Ohio Land Title Association, the County Treasurers Association of Ohio, and the Ohio Recorders Association—all of whom cited predatory practices by some wholesalers.
**What SB155 requires**
1. **Disclosure form** – Wholesalers must provide a signed written statement to the homeowner before any contract is executed. The form must explain that the wholesaler is not representing the seller, intends to assign the contract for profit, and may offer below market value.
2. **Right to cancel** – If a homeowner does not receive the disclosure, they may terminate the contract at any time before closing without penalty.
3. **Penalties** – Failure to provide the disclosure can result in legal sanctions.
The bill explicitly excludes transactions between blood relatives, parents, affiliates, subsidiaries, or affiliated groups.
**Wholesalers’ reaction**
Tristan Gardner, founder of Gardner Property, expressed concerns about an earlier draft that would have required licensing but welcomed the final version. “I support ethical wholesaling,” he said. “Sellers deserve to know exactly how a person plans to solve their problem.” Bradley Partin, CEO of Richland County Home Buyers, welcomed the “thoughtful regulatory framework.” He added that while wholesaling is a small part of his business, the bill’s core provisions do not affect his primary operations, which involve taking title. Both men emphasized that wholesaling can be done transparently and serves buyers who need speed, convenience, or certainty over top dollar.
**Bottom line**
Ohio’s SB155 brings transparency to a previously unregulated sector, giving homeowners the right to understand and, if desired, cancel a wholesaler’s contract. It also creates a legal mechanism to penalize non‑compliance. While some industry participants welcome the clarity, others worry about potential restrictions. The law marks a significant step toward protecting vulnerable sellers while still allowing legitimate, ethical wholesaling to continue.
