New Law Aims to Protect Ohio Homeowners from Misleading, Predatory Real Estate Offers

COLUMBUS, Ohio - New measures are now in place to help protect consumers, especially older Ohioans, from misleading or potentially predatory offers on their property. The Ohio Department of Commerce Division of Real Estate and Professional Licensing is spotlighting important changes resulting from Senate Bill 155, which was signed into law by Governor Mike DeWine on Dec. 1 and takes effect today, March 2.

Real estate wholesalers are now required to provide a clear disclosure of their business model before entering into a contract with a property owner. This new requirement is designed to increase transparency in real estate transactions and better protect consumers.

Wholesaling is a practice in which licensed or unlicensed individuals contact a seller who may want to sell their property quickly, negotiate a price usually lower than the market value, and sign a contract to purchase the property. Those same individuals then market the property to potential buyers for a price above the contract price, assign the contract to the new buyer, then pocket the difference as profit. These sales typically occur simultaneously, so if an end buyer is not found, the sale may not take place at all.

While wholesaling is legal, Division Superintendent Daphne Hawk says this practice can be confusing to homeowners, particularly when wholesalers fail to clearly explain their role or intentions. She says that's what SB155 aims to address. This time last year, the Division partnered with the Ohio Department of Aging (ODA) and Ohio District 5 Area Agency on Aging in Richland County to call attention to reports of a surge in unsolicited real estate offers targeting older homeowners.

"This new law is a major step forward in protecting Ohio homeowners, especially older adults, from misleading or high-pressure real estate tactics that might be utilized by some wholesalers in engaging with sellers," Hawk said. "By requiring wholesalers to clearly disclose their role and intentions, we're giving property owners the transparency they deserve and the opportunity to make informed decisions. Our goal is to ensure that no Ohioan is caught off guard by a contract they didn't fully understand, especially when it could potentially lead to the loss of their home equity and the property they've cherished for decades."

Wholesalers must now provide a signed disclosure statement to property owners before executing a contract. If the disclosure is not provided, the homeowner has the right to cancel the agreement. Violations by unlicensed wholesalers may be enforced under the Ohio Consumer Sales Practices Act by Ohio's Attorney General.

The Ohio Department of Commerce has previously warned that older adults are often targeted with unsolicited real estate offers, including complex arrangements like sale leasebacks or reverse mortgages. These offers may appear attractive but can carry hidden risks such as turning homeowners into tenants or including unfavorable terms that jeopardize long-term housing stability.

To help protect themselves and their loved ones, Ohioans are encouraged to:

• Be cautious of any unsolicited offers to buy property, especially those that involve urgency or pressure.
• Ask questions and request written documentation before signing anything.
• Consult with a trusted advisor, attorney, or family member before entering into any real estate agreement.

For more information about real estate wholesaling and consumer protections, visit the Division's Consumer page here.

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About the Division of Real Estate & Professional Licensing
The Division of Real Estate & Professional Licensing is part of the Ohio Department of Commerce. The department is Ohio's chief regulatory agency, focused on promoting prosperity and protecting what matters most to Ohioans. We ensure businesses follow the laws that help them create jobs and keep Ohioans safe. To learn more about what we do, visit our website at com.ohio.gov.