OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
S.B. 192 Bill Analysis
135th General Assembly
Click here for S.B. 192’s Fiscal Note
Version: As Introduced
Primary Sponsor: Sen. Brenner
Effective date:
Austin C. Strohacker, Attorney
SUMMARY
 Requires individuals dealing in residential real estate contracts to be licensed as a real
estate broker.
 Requires wholesalers of residential real property to make certain disclosures.
DETAILED ANALYSIS
Real estate brokers
Under continuing law, individuals engaged in certain specified real estate activities on
behalf of another person must be licensed as a real estate broker.1 Under the bill, this list of
activities is expanded to include those dealing in residential real estate contracts, regardless of
whether those dealings are on behalf of another person. Specifically, those engaged “in the
business of buying, selling, offering to buy or sell, marketing for sale, exchanging, or otherwise
dealing in contracts, including novations and assignable contracts, for the purpose or sale of
residential real estate . . . .”2
Wholesalers
Definitions
The bill also introduces disclosure requirements for wholesalers. Under the bill, a
wholesaler is defined as “a person or entity that, for a fee, commission, other valuable
consideration, or with the intention, in the expectation, or upon the promise of receiving or
collecting a fee, commission, or other valuable consideration, enters into a purchase contract
1 R.C. 4735.02, not in the bill.
2 R.C. 4735.01(A).
February 23, 2024
Office of Research and Drafting LSC Legislative Budget Office
for residential real property either as the grantee, and assigns or novates that contract to
another person or entity, [or] as the grantor, and, without holding legal title to that real
property, assigns or novates that contract to another person or entity.”3
Under the bill, residential real estate is “real property containing one to four dwelling
units.”4
Disclosure
Requirements
The bill requires wholesalers to disclose certain information before entering into a
contract transferring real estate.
If the wholesaler is the grantee (the purchaser of the property), the wholesaler must
disclose to the owner of the property, on a form prescribed by the Superintendent of Real
Estate, all of the following:
 That the grantee is a wholesaler and is buying the property intending to make a profit;
 That the wholesaler may assign the wholesaler’s interest in the property to a third party
and may collect a fee from the ultimate buyer of the property, separate from any fee
included in the contract between the wholesaler and the owner of the property;
 Acknowledgement by the property owner that the purchase price may be less than the
actual market value of the property, and that the property owner voluntarily transfers
the property to the wholesaler at that price;
 Whether the wholesaler holds an active real estate broker or salesperson license and, if
not, that the wholesaler is not representing the property owner and is not acting as
their broker or agent in the transaction;
 That the property owner is advised to seek legal advice before entering into the
agreement.5
If the wholesaler is the grantor (the seller of the property), the wholesaler must disclose
to the buyer of the property, on a form prescribed by the Superintendent of Real Estate, all of
the following:
 That the grantor is a wholesaler that holds an equitable interest in the property and may
not be able to convey title to the property;
3 R.C. 5301.95(A)(3).
4 R.C. 5301.95(A)(1).
5 R.C. 5301.95(B)(1).
P a g e |2 S.B. 192
As Introduced
Office of Research and Drafting LSC Legislative Budget Office
 Whether the wholesaler holds an active real estate broker or salesperson license and, if
not, that the wholesaler is not representing the buyer and is not acting as their broker
or agent in the transaction;
 That the buyer is advised to seek legal advice before entering into the agreement.6
The Superintendent of Real Estate is required to make disclosure forms that satisfy the
above requirements and include instructions for completion and space for the parties to sign
and date the form.7
Penalties
The bill specifies the penalties for failing to make the disclosures required above.
If the wholesaler fails to provide the required disclosures, the other party may cancel
the contract prior to the close of the escrow without penalty. If the wholesaler is the grantee,
the owner of the property may retain any earnest money paid by the wholesaler. If the
wholesaler is the grantor, the buyer of the property must be refunded all earnest money paid
to the wholesaler. These penalties cannot be waived or modified by agreement of the parties.
Any agreements executed, modified, or extended after the bill goes into effect are void and
unenforceable.8
Any violation of the disclosure requirements is considered an unfair or deceptive act or
practice. The party injured by the violation has a cause of action against the wholesaler and is
entitled to relief of their economic damages plus up to $5,000 in noneconomic damages. The
Attorney General may investigate and bring actions against a wholesaler alleged to have
violated the disclosure requirements.9
HISTORY
Action Date
Introduced 11-21-23
ANSB0192IN-135/ar
6 R.C. 5301.95(B)(2).
7 R.C. 5301.95(C).
8 R.C. 5301.95(D).
9 R.C. 5301.95(D)(3); R.C. 1345.07 and 1345.09, not in the bill.
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As Introduced


Statutes affected:
As Introduced: 4735.01, 4735.18