Ohio Legislative Bills

HB 532, currently in progress as of June 2024, aims to increase transparency in real estate wholesaling in Ohio. It requires assignment contracts to include plain language disclosures and mandates sellers be informed of estimated assignment fees. Additionally, it establishes a hotline for seller complaints and imposes fines for violations, helping protect consumers involved in wholesale deals.

Yes, Ohio enacted SB 87, the Land Contract Reform Act, on April 15, 2021. This law strengthens buyer protections by requiring sellers or investors to record land contracts within 20 days and grants buyers additional rights to cure defaults before forfeiture, promoting fairer real estate investing practices in Ohio.

Real estate investors engaging in wholesaling will need to ensure all assignment contracts comply with the new disclosure requirements under HB 532. They must clearly inform sellers about assignment fees and be prepared for possible fines if the law is violated. This legislation encourages more ethical wholesaling and transparency in Ohio's competitive market.

HB 532 proposes fines of $5,000 for a first violation and $15,000 for repeat offenses related to failure to provide required disclosures or misrepresenting assignment contracts. These penalties aim to curb predatory wholesaling practices and protect sellers in Ohio.

Requiring land contracts to be recorded within 20 days increases transparency and provides public notice of the contractual agreement. This step helps protect buyers in real estate investing in Ohio by formalizing the transaction and potentially preventing disputes or fraud.

HB 532 focuses on protecting sellers by requiring clear disclosures about assignment fees and creating a hotline for complaints about wholesale transactions. These measures ensure sellers are better informed and have a resource if they encounter unfair or deceptive practices.

With HB 532 still in progress, Ohio lawmakers are actively considering stronger consumer protections in wholesaling. Investors and stakeholders are encouraged to stay updated on legislative developments as new rules may affect contract assignments and transparency requirements in real estate wholesaling.

Investors should start using clear, plain language disclosures in all assignment contracts and fully inform sellers of any assignment fees. Maintaining transparent communication and documentation aligns with the spirit of HB 532 and helps avoid potential regulatory penalties.

Currently, Ohio law does not specifically regulate double closings or sequential closings in wholesaling. However, HB 532’s focus on transparency in assignment contracts may indirectly affect these practices by requiring clearer disclosures to sellers.

Once HB 532 becomes law, sellers will be able to use the dedicated hotline for complaints about wholesale deals, providing an official channel to report unfair or deceptive practices in Ohio’s real estate market.