Yes, wholesaling is legal in Ohio, and the wholesaler law in effect since March 2, 2026 does not require a license (ORC 5301.95). Before a binding contract to buy a one to four unit home, the wholesaler must give the owner a separate bold disclosure that both sign and date. Without it, the owner can cancel any time before closing without penalty and receive the wholesaler's earnest money. Ohio's broker law still bars unlicensed wholesalers from licensed work (ORC 4735.02).
The law is ORC 5301.95, created by Senate Bill 155 of the 136th General Assembly and effective March 2, 2026. The Ohio Department of Commerce's announcement of the law states that wholesaling is legal. The law covers real property improved by a building or structure with one to four dwelling units (ORC 5301.95(A)(1)).
A "wholesaler" is a person or company that, for a fee or other valuable consideration, signs a purchase contract on that property and assigns or novates it to someone else. That includes buyer-side wholesalers and seller-side wholesalers who assign without holding legal title (ORC 5301.95(A)(2)(a)). Excluded are an individual assigning to a blood relative and a business assigning to its parent, affiliate, subsidiary, or affiliated group under common control (ORC 5301.95(A)(2)(b)). The disclosure duty applies only to buyer-side wholesalers, which the statute calls grantees (ORC 5301.95(B)).
The wholesaler or its representative must give the owner of record a written, conspicuous disclosure, separate from the purchase contract and in boldface type of at least 12 point. Both must sign and date it before any binding contract (ORC 5301.95(B)). The statute requires it "in substantially the following form":
"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)"
Under this law, only if the wholesaler skipped the disclosure. The owner may then cancel any time before the close of escrow without penalty, and the escrow or closing agent must pay any earnest money the wholesaler deposited to the owner within 30 days (ORC 5301.95(C)(1)). No oral or written agreement can waive these rights (ORC 5301.95(C)(2)).
The owner can also sue for the relief available under the Consumer Sales Practices Act (ORC 5301.95(C)(3)). That means undoing the deal, or actual economic damages plus up to $5,000 in noneconomic damages, with attorney fees possible when the violation was knowing (ORC 1345.09). The filing deadline is generally two years (ORC 1345.10(C)).
A violation is an unfair or deceptive act, and the Ohio Attorney General can use every Consumer Sales Practices Act enforcement power against the wholesaler (ORC 5301.95(C)(3)). Those include injunctions, orders to repay harmed owners, and civil penalties in some cases (ORC 1345.07).
For licensed agents and brokers, a violation is also grounds for discipline (ORC 4735.18(A)(40)). The Ohio Real Estate Commission can revoke or suspend a license, fine up to $2,500 per violation, issue a public reprimand, or order extra continuing education (ORC 4735.051(I)). Owners can file a complaint with the Division of Real Estate and Professional Licensing or the Ohio Attorney General.
ORC 5301.95 creates no license, but Ohio's broker law still applies. Anyone who, for another and for a fee, negotiates a sale, lists property, advertises as being in the business of selling real estate, or helps find buyers must be licensed (ORC 4735.01(A), ORC 4735.02(A)). One act is enough (ORC 4735.01(H)). People acting on real estate they own, or acquire on their own account, are exempt (ORC 4735.01(I)(1)(a)). Whether a contract interest counts as ownership is not settled.
No Ohio statute or court decision we found draws the exact line for wholesaling. The Legislative Service Commission's final analysis of SB 155 says wholesalers may not do work that requires a license without one, "such as marketing a property to the general public." Acting as a broker without a license is a first degree misdemeanor (ORC 4735.99(A)) carrying up to 180 days in jail and a $1,000 fine (ORC 2929.24, ORC 2929.28). An unlicensed person also cannot sue to collect pay for broker work (ORC 4735.21), a bar the Ohio Supreme Court applied in Dundics v. Eric Petroleum Corp., 2018-Ohio-3826.
Licensed agents who wholesale also answer to every other ground in ORC 4735.18, including acting as both broker and undisclosed principal in one deal (ORC 4735.18(A)(15)).
SB 155 passed both chambers unanimously, was signed December 1, 2025, and added matching rules for agent discipline and broker-held earnest money (ORC 4735.18(A)(40), ORC 4735.24(A)(4)). An earlier bill, SB 192 of the 135th General Assembly, would have required a broker license for dealing in residential real estate contracts, but it never left committee. HB 287, a House bill amending the same sections, has had no action since May 2025. As of October 29, 2026, we found no pending bill to amend ORC 5301.95.
This is information, not legal advice.
You can cancel any time before closing without penalty, and the wholesaler's earnest money must be paid to you within 30 days of cancellation (ORC 5301.95(C)(1)). A clause waiving that right is void (ORC 5301.95(C)(2)). Put the cancellation in writing to the wholesaler and the title company so there is a record. You can also sue under the Consumer Sales Practices Act or report the wholesaler to the Ohio Attorney General.
ORC 5301.95 gives a cancellation right only when the disclosure was missing. If you signed a compliant form before the contract, your options depend on the contract itself and other Ohio law. A form handed over after you signed, folded into the purchase contract, or not printed in bold 12 point type may not satisfy the statute (ORC 5301.95(B)). Have an Ohio real estate attorney review the paperwork before closing.
No. The required form states that a wholesaler acts on its own behalf and does not represent you. It also tells you the wholesaler may assign its interest in your contract to a third party without your consent before closing, may charge that buyer a separate fee for profit, and that the agreed price may be below market value (ORC 5301.95(B)(1)). The Ohio Department of Commerce urges owners to consult an attorney or trusted advisor before signing.
The definition covers anyone who assigns or novates the purchase contract (ORC 5301.95(A)(2)(a)). The statute does not mention double closings, where an investor takes title and then resells, and we found no Ohio court decision or agency guidance applying the law to them. Because novation is named, substituting a new buyer into the contract is covered. Ask an Ohio real estate attorney before relying on any structure.
Ohio is one of 51 jurisdictions in our state-by-state wholesaling law table, which covers licensing, seller disclosures, and cancellation windows everywhere in the U.S. If you already have a cash offer, here is how to compare cash offers line by line.