The bill amends sections 4735.18 and 4735.24 of the Revised Code and enacts section 5301.95, focusing on the regulation of real estate wholesalers in Ohio. It introduces disciplinary sanctions for real estate licensees who do not comply with the new requirements outlined in section 5301.95, which includes maintaining proper trust accounts and avoiding misrepresentation in transactions. The bill also modifies existing regulations regarding earnest money handling, specifying that brokers must follow purchase agreement terms and detailing conditions for disbursing or returning earnest money. A significant addition is the provision allowing the record owner of residential property to cancel transactions, enabling brokers to disburse earnest money accordingly.

Furthermore, the bill defines a wholesaler and sets conditions for their operation, including the requirement to provide a conspicuous written disclosure statement to the record owner before entering into a binding contract. This disclosure must clarify the wholesaler's role and the owner's rights, and both parties must sign it prior to contract execution. The bill establishes penalties for wholesalers who fail to provide these disclosures, allowing the record owner to cancel the contract without penalty before closing. It also states that any changes to the disclosure requirements made after the bill's effective date are void. Violations are classified as unfair or deceptive acts, allowing affected parties to seek legal recourse, while existing sections 4735.18 and 4735.24 are repealed, indicating a comprehensive update to the regulatory framework for real estate transactions involving wholesalers.

Statutes affected:
As Introduced: 4735.18, 4735.24