The bill amends sections 4735.18 and 4735.24 of the Revised Code and enacts section 5301.95, which introduces new regulations for real estate wholesalers in Ohio. It establishes disciplinary sanctions for real estate licensees who do not comply with the requirements of section 5301.95 while acting as wholesalers of residential properties. The bill outlines specific misconduct that can lead to disciplinary actions, such as misrepresentation and unauthorized dealings, while also clarifying the handling of earnest money in transactions. Brokers are required to maintain earnest money according to the purchase agreement until certain conditions, like transaction cancellation by the record owner, are met.

Additionally, the bill mandates that wholesalers provide a conspicuous written disclosure statement to the record owner before entering into a binding contract, detailing their role and the nature of the transaction. This disclosure must be in boldface type and requires the record owner's signature to validate the contract. Failure to provide this disclosure allows the record owner to cancel the contract without penalty prior to closing. The bill also emphasizes that any changes to the disclosure requirements cannot be waived, classifying violations as unfair or deceptive acts, which grants affected parties the right to seek legal recourse. The repeal of existing sections 4735.18 and 4735.24 signifies a comprehensive update to the legal framework governing real estate transactions involving wholesalers.

Statutes affected:
As Introduced: 4735.18, 4735.24
As Reported By Senate Committee: 4735.18, 4735.24
As Passed By Senate: 4735.18, 4735.24