Ohio’s New Disclosure Rules for Real Estate Wholesalers
If you are wholesaling residential property in Ohio, the rules just changed in a meaningful way.
As of March 2, 2026, Ohio law requires real estate wholesalers to give sellers a specific written disclosure before a contract becomes binding.
The disclosure itself is simple. The consequences for failing to provide it can be severe.
What Ohio Means by “Residential Property” and “Wholesaler”
This statute applies only to residential real property with one to four dwelling units. That includes single family homes, duplexes, triplexes, and four-unit buildings.
Under Ohio law, a wholesaler is someone who enters into a purchase contract for residential property with the intention of assigning or transferring that contract to another buyer for a fee or other profit.
The law focuses on wholesalers acting as the buyer, not the seller. Certain transfers between family members or affiliated entities are excluded, but most investor assignment deals fall squarely within the statute.
If you’re unsure whether this applies to you, it probably does. Many property investors fall within Ohio’s definition of a wholesaler.
As a practical rule, if your plan is to put a property under contract and sell the contract to someone else for profit, you should assume you are acting as a wholesaler and comply with the disclosure requirements. This does not apply to a traditional flipper, meaning someone who actually purchases the property, takes title, renovates it, and later sells it for a profit. That type of transaction is not wholesaling under this statute.
The Required Disclosure: What the Law Actually Demands
Before entering into a binding contract, a wholesaler must provide the property owner with a separate written disclosure that meets all of the following requirements:
It must be separate from the purchase agreement
It must be conspicuous and printed in bold
The font size must be at least 12-point
It must be signed and dated by both the wholesaler and the property owner
The statute includes mandatory language that must be used in substantially the same form. The disclosure makes clear that:
The buyer is a wholesaler acting on their own behalf
The wholesaler does not represent the seller
The wholesaler intends to assign the contract for profit
The contract may be assigned to a third party without the seller’s consent
The agreed price may be below market value
This is not something that can be buried in a purchase agreement or waived by contract language. The disclosure must stand on its own.
Statutorily Required Disclosure Language
Ohio law requires wholesalers to provide the following disclosure to the record owner in a conspicuous manner printed in boldface type in a font size not less than twelve points. This language must be used as written and provided as a standalone document:
Ohio law requires a wholesaler acting as a grantee, before entering into a contract or agreement that conveys an interest in residential real property, to provide certain information to the record owner in a conspicuous manner printed in boldface type in a font size not less than twelve points. Failure by a wholesaler to present or complete this form is an unfair or deceptive act or practice. Any person who enters into an agreement that conveys an interest in residential real property to a wholesaler acting as a grantee without receiving this disclosure has a cause of action against the wholesaler. A wholesaler acting as a grantee is prohibited from entering into a binding contract to acquire an interest in residential real property unless this statement is signed and dated by the record owner of the property.
The owner acknowledges that the person presenting this document is a wholesaler, as defined by section 5301.95 of the Revised Code, and that all buyers and sellers of real estate are entitled to seek legal or professional advice before entering into any agreement or contract regarding the purchase or sale of property, including an agreement with a wholesaler.
A wholesaler is acting on the wholesaler’s own behalf and does not represent the owner in this transaction. A wholesaler enters assignable contracts with owners and seeks to sell or assign the wholesaler’s interest for a profit. The wholesaler may assign the wholesaler’s interest in the purchase contract to a third party without the owner’s consent before closing.
The wholesaler may charge a fee to the third-party buyer separately for profit. The agreed purchase price between the owner and wholesaler may be below market value and is conveyed voluntarily.
The owner acknowledges disclosure of the information provided in this form by signing and dating below:
______________ (Property owner signature) ______ (date) _______________ (Wholesaler signature) _____ (date)
What Happens If the Disclosure Is Not Provided
If a wholesaler fails to provide the required disclosure before entering into the contract, Ohio law gives the seller significant leverage.
Contract Cancellation Before Closing
The property owner may cancel the contract at any time before the close of escrow, without penalty. If earnest money was deposited, the escrow or closing agent is required to release that money to the seller within 30 days of cancellation.
For investors, this means a deal can fall apart late in the process, even if everything else is lined up.
Consumer Sales Practices Act Exposure
The statute also states that failure to provide the disclosure is an unfair or deceptive act under Ohio’s Consumer Sales Practices Act.
That matters because the CSPA allows private lawsuits and enhanced remedies depending on the facts of the case. While not every violation automatically results in maximum damages, the exposure is real and fact-specific. This is one of the few situations where Ohio law explicitly applies consumer protection statutes to a real estate transaction.
From a risk standpoint, this moves wholesaler disclosure issues out of the category of technical defects and into something courts take very seriously.
No Waivers, No Workarounds
Ohio law is explicit that the disclosure requirement and the seller’s remedies cannot be waived or modified, either orally or in writing.
Any contract term attempting to do so is void and unenforceable. Putting similar language into the purchase agreement does not satisfy the statute. The disclosure must be its own document.
Practical Takeaways
For Wholesalers and Investors
Compliance here is straightforward:
Use a standalone disclosure document
Track the statutory language closely
Make it bold, readable, and obvious
Get it signed and dated before the contract is binding
This is an easy fix that avoids outsized risk. Skipping it is not worth the gamble.
For Property Owners
If you sold or agreed to sell a property and later discovered the buyer was acting as a wholesaler without providing the required disclosure, you may have options. Timing matters, especially if escrow has not yet closed, so these situations should be reviewed sooner rather than later.
Conclusion
Ohio’s new wholesaler disclosure law is designed to force transparency into residential investment transactions. The disclosure itself is simple. The penalties for ignoring it are not.
If you are a wholesaler who wants to make sure your contracts comply with Ohio law, or a property owner who believes a disclosure was never provided, our real estate litigation team can help you evaluate your options.
About the Author
Nicholas Weiss is the founder and supervising Attorney of N.P. Weiss Law, serving clients across Greater Cleveland in real estate, family law, and estate planning & administration.
Nick is committed to helping property owners, businesses, and families navigate legal challenges with clarity and confidence. Learn more about Nicholas Weiss.
This article and the accompanying video are provided for informational purposes only and are intended as general guidelines. Nothing in this content creates an attorney-client relationship or constitutes legal advice on which you should rely without consulting your own retained attorney. If you have questions about your specific legal situation, please contact a licensed Ohio attorney for personalized guidance.
