|
Ohio Real Estate Law Update
This week, Ohioans lobbied legislators for the passage of Senate Bill (SB) 192, important legislation designed to curb the predatory practice of real estate wholesaling. Multiple Realtors from Northeast Ohio had remarks urging lawmakers to protect vulnerable homeowners.
Real estate wholesaling is a predatory practice where a wholesaler enters into a purchase agreement with a homeowner, often under the guise of being the actual buyer. However, instead of completing the purchase, the wholesaler assigns the contract to a third-party investor for a fee, pocketing the difference.
These transactions frequently occur without the wholesaler ever taking title to the property or being transparent about their true intentions. Wholesalers often target vulnerable groups, including seniors, low-income homeowners, and those with properties in need of significant repairs. They approach these homeowners with misleading promises of a quick cash sale, omitting critical information about the property’s true market value or the wholesaler’s intent to resell the contract for profit. This practice strips homeowners of their equity and leaves them blindsided at closing.
The number of homeowners who mention to me they have connected with a wholesaler is astounding. As a matter of fact, 90% of the owners who speak with these types of salesmen do not even know that they in fact were not speaking with a Realtor or a bona fide investor, but in fact a wholesaler. My wife and I frequently get calls like this and this happens on a weekly basis.
The bottom line is, a wholesaler is not looking out for your best interest. Their goal is to prey on those who are in need and who may not be up to date on the market. They attempt to get your home under contract for well under market value and sell the contract to another investor, pocketing your equity. If you ever get a call like this, or someone you know does, and you have questions, please call me. I am happy to vet them to see if they are an actual end investor, real estate agent, or simply a wholesaler.
| 
