What a Wholesaler Does
In real estate, a wholesaler is an investor who:
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Finds a property owner willing to sell, often off-market.
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Enters into a contract to buy the property (but usually does not close the purchase or take title themselves).
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Assigns or transfers that contract to a third-party buyer (often another investor) for a profit — typically by charging a fee or selling the contract at a higher price. Hondros College
Wholesalers make money not by owning and fixing up property, but by connecting sellers and buyers and assigning contracts — which can save sellers time but has raised consumer-protection concerns when sellers don’t fully understand what they’re signing. Ohio REALTORS
What Ohio Senate Bill 155 Is
Ohio Senate Bill 155 (SB 155) is new legislation enacted by the Ohio General Assembly that creates a statutory framework for real estate wholesaling, including mandatory disclosures to homeowners to improve transparency and protect sellers. Ohio Legislature+1
The bill:
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Creates a new section in the Ohio Revised Code — § 5301.95 — focusing on wholesalers. Ohio Legislature
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Defines responsibilities for wholesalers when they enter contracts related to residential real property. Fast Democracy
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Establishes penalties and civil remedies if a wholesaler fails to provide required disclosures. Ohio REALTORS
The legislation passed both chambers with strong bipartisan support and was signed by the Governor. It represents Ohio’s first major effort to regulate real estate wholesaling and strengthen consumer protections. Ohio REALTORS
How SB 155 Affects Wholesalers
Under the new law, real estate wholesalers must:
1. Provide Specific Written Disclosure Before Contract
A wholesaler must give the residential property owner a written disclosure, in boldface type with at least 12-point font, before entering into any contract that conveys an interest in the property. Hondros College
If the wholesaler:
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Fails to present or complete the disclosure,
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Enters into an agreement without the seller having signed it,
then the act can be considered an unfair or deceptive practice under Ohio law. Ohio REALTORS
2. Contract Cannot Be Binding Without Signed Disclosure
A wholesaler cannot enter into a binding contract for residential property unless the disclosure is signed and dated by the record owner. Hondros College
3. Sellers Have a Cause of Action
If a homeowner enters into a contract with a wholesaler without receiving the required disclosure, the homeowner has a legal cause of action against the wholesaler. Ohio REALTORS
4. Sellers May Cancel the Contract
The new law allows sellers to cancel the contract at any time before closing — without penalty — if the disclosure was not properly provided. Ohio REALTORS
5. Wholesalers May Be Subject to Enforcement
Unauthorized or deceptive wholesaling practices can be pursued under the Consumer Sales Practices Act, and enforcement actions can be brought by the Ohio Attorney General or through homeowner civil claims. North Columbus News
New Statute ORC § 5301.95 Disclosure Requirement
The disclosure language required under the new law must include the following statement, provided in bold and at least 12-point font:
Ohio law requires a wholesaler acting as a grantee, before entering into a contract or agreement that conveys an interest in residential real property, to provide certain information to the record owner in a conspicuous manner printed in boldface type in a font size not less than twelve points. Failure by a wholesaler to present or complete this form is an unfair or deceptive act or practice. Any person who enters into an agreement that conveys an interest in residential real property to a wholesaler acting as a grantee without receiving this disclosure has a cause of action against the wholesaler. A wholesaler acting as a grantee is prohibited from entering into a binding contract to acquire an interest in residential real property unless this statement is signed and dated by the record owner of the property.
The owner acknowledges that the person presenting this document is a wholesaler, as defined by section 5301.95 of the Revised Code, and that all buyers and sellers of real estate are entitled to seek legal or professional advice before entering into any agreement or contract regarding the purchase or sale of property, including an agreement with a wholesaler. A wholesaler is acting on the wholesaler’s own behalf and does not represent the owner in this transaction. A wholesaler enters assignable contracts with owners and seeks to sell or assign the wholesaler’s interest for a profit. The wholesaler may assign the wholesaler’s interest in the purchase contract to a third party without the owner’s consent before closing. The wholesaler may charge a fee to the third-party buyer separately for profit. The agreed purchase price between the owner and wholesaler may be below market value and is conveyed voluntarily.
The owner acknowledges disclosure of the information provided in this form by signing and dating below:
(Signature block follows.) Hondros College
This language — now part of Ohio law — is designed to ensure sellers know they are dealing with a wholesaler, not an agent representing them, and to alert them to the risks and mechanics of wholesaling. Hondros College
Does It Apply Only to Residential Property?
Yes. Senate Bill 155 and the new ORC § 5301.95 apply specifically to transactions involving residential real property — generally understood to be one- to four-unit residential properties where a wholesaler is acting as the grantee in a contract. Hondros College
When the Law Takes Effect
Once signed by the Governor, SB 155 goes into effect 90 days after that signature — a standard delayed effective date that allows wholesalers and industry participants time to comply. Ohio REALTORS
(If the Governor signed in early December 2025, the law would take effect around March 2026 — check the official enactment date in the enrolled bill text for the exact calendar date.)