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 provisions, which include maintaining proper trust accounts and avoiding misrepresentation in transactions. The bill also clarifies brokers' responsibilities regarding earnest money deposits and defines key terms such as "residential real property" and "wholesaler." Notably, it allows record owners of residential property to cancel transactions under specific conditions, facilitating the appropriate disbursement of earnest money by brokers.

Furthermore, the legislation mandates that wholesalers provide a conspicuous written disclosure statement to record owners before entering into binding contracts, detailing the owner's rights and the wholesaler's role. This disclosure must be signed and dated by both parties prior to contract execution. The bill establishes penalties for non-compliance, allowing record owners to cancel contracts without penalty before closing. It also invalidates any modifications to the disclosure requirements made after the bill's effective date and classifies violations as unfair or deceptive acts, enabling affected parties to seek legal recourse. The repeal of existing sections 4735.18 and 4735.24 signifies a comprehensive update to the regulatory framework for real estate transactions involving wholesalers.

Statutes affected:
As Introduced: 4735.18, 4735.24