SB 155 — Revise the real estate wholesaler law

155 Page136th 3G.A. As Passed by the Senate any second or subsequent violation of municipal or federal civil 47 rights laws relevant to purchasing or selling real estate 48 whether or not there has been a final adjudication by a court, 49 provided that such violation arose out of a situation wherein 50 parties were engaged in bona fide efforts to purchase, sell, or 51 lease real estate.

Forthe anyowner secondor offense under this division, 52 the commissionowner's shallauthorized suspendagent, foror aon minimumany ofterms twoother monthsthan orthose 53authorized revokeby the licenseowner ofor the brokerowner's orauthorized salesperson.agent;

For(21) Having published advertising, whether printed, radio, display, or of any 54other subsequentnature, offense,which thewas commissionmisleading shallor revokeinaccurate thein licenseany ofmaterial 55particular, theor brokerin any way having misrepresented any properties, terms, values, policies, or salesperson.services of the business conducted;

56(22) (8)Having Procuringknowingly awithheld licensefrom underor thisinserted chapter,in forany thestatement 57of licenseeaccount or invoice any salespersonstatement bythat fraud,made misrepresentation,it orinaccurate 58in deceit;any material particular;

59(23) (9) Having violatedpublished or failedcirculated tounjustified complyor withunwarranted anythreats provisionof 60legal ofproceedings sectionswhich 4735.51tended to 4735.74or ofhad the Revisedeffect Codeof orharassing havingcompetitors 61 willfully disregarded or violatedintimidating anytheir othercustomers; provisions of this 62 chapter;

63(24) (10)Having Asfailed ato realkeep estatecomplete broker,and havingaccurate demanded,records withoutof 64all reasonabletransactions cause,for othera thanperiod of three years from athe brokerdate licensedof underthe thistransaction, 65such chapter,records ato commissioninclude copies of listing forms, earnest money receipts, offers to whichpurchase and acceptances of them, records of receipts and disbursements of all funds received by the licensee isas notbroker entitled,and or,incident 66to the licensee's transactions as asuch, realand estaterecords salesperson,required havingpursuant demanded,to withoutdivisions 67(C)(4) reasonableand cause,(5) aof commissionsection 4735.20 of the Revised Code, and any other instruments or papers related to whichthe performance of any of the licenseeacts isset notforth 68in entitled;the definition of a real estate broker;

69(25) (11)Failure Except as permitted under section 4735.20 of thea 70real Revisedestate Code,broker having paid commissions or feessalesperson to,to orfurnish dividedall 71parties commissionsinvolved orin fees with, anyone not licensed as a real estate 72transaction brokertrue orcopies salespersonof underall thislistings chapterand orother anyoneagreements notto operatingwhich 73they asare ana out-of-stateparty, commercialat realthe estatetime brokereach orparty salespersonsigns 74them; under section 4735.022 of the Revised Code;

75(26) S.Failure to maintain at all times a special or trust bank account in a depository of a state or federally chartered institution located in this state.

The account shall be noninterest-bearing, separate and distinct from any personal or other account of the broker, and, except as provided in division (A)(27) of this section, shall be used for the deposit and maintenance of all escrow funds, security deposits, and other moneys received by the broker in a fiduciary capacity.

The name, account number, if any, and location of the depository wherein such special or trust account is maintained shall be submitted in writing to the superintendent.

Checks drawn on such special or trust bank accounts are deemed to meet the conditions imposed by section 1349.21 of the Revised Code.

Funds deposited in the trust or special account in connection with a purchase agreement shall be maintained in accordance with section 4735.24 of the Revised Code.

(27) Failure to maintain at all times a special or trust bank account in a depository of a state or federally chartered institution in this state, to be used exclusively for the deposit and maintenance of all rents, security deposits, escrow funds, and other moneys received by the broker in a fiduciary capacity in the course of managing real property.

This account shall be separate and distinct from any other account maintained by the broker.

The name, account number, and location of the depository shall be submitted in writing to the superintendent.

This account may earn interest, which shall be paid to the property owners on a pro rata basis.

Division (A)(27) of this section does not apply to brokers who are not engaged in the management of real property on behalf of real property owners.

Am.

S.

155 Page136th 4G.A. As Passed by the Senate (12) Having falsely represented membership in any real 76 estate professional association of which the licensee is not a 77 member;

78(28) (13) Having accepted,failed given,to orput chargeddefinite anyexpiration undiscloseddates 79in commission,all rebate,written oragency directagreements profitto onwhich expendituresthe madebroker foris a 80party; principal;

81(29) (14) Having offeredan anythingunsatisfied offinal valuejudgment otheror thanlien the 82 consideration recited in theany salescourt contractof asrecord anagainst inducement to 83 a person to enter into a contract for the purchaselicensee orarising saleout of 84 real estate or having offered real estate or the improvementslicensee's onconduct 85 real estate as a prizelicensed inbroker a lottery or schemesalesperson; of chance;

86(30) (15)Failing Havingto actedrender inpromptly theupon dualdemand capacitya full and complete statement of realthe estateexpenditures 87by the broker andor undisclosedsalesperson principal,of funds advanced by or on behalf of a party to a real estate transaction to the broker or salesperson andfor 88the undisclosedpurpose principal,of performing duties as a licensee under this chapter in anyconjunction with the real estate transaction;

89(31) (16)Failure Havingwithin guaranteed,a authorized,reasonable ortime, permittedafter anythe 90receipt personof the commission by the broker, to guaranteerender futurean profitsaccounting whichto mayand resultpay froma real estate salesperson the 91salesperson's resaleearned share of realit; property;

92(32) (17)Performing Having advertised or placed a sign on any propertyservice 93 offering it for saleanother orconstituting for rent without the consentpractice of thelaw, 94as ownerdetermined orby theany owner'scourt authorizedof agent;law;

95(33) (18) Having inducedbeen anyadjudicated partyincompetent toby a contractcourt, ofas saleprovided or 96 lease to break such contract for the purpose of substituting in 97section lieu5122.301 of itthe aRevised newCode. contract with another principal;

98A (19)license Havingrevoked negotiated the sale, exchange, or leasesuspended of any 99 real property directly with a seller, purchaser, lessor, or 100 tenant knowing that such seller, purchaser, lessor, or tenant is 101 represented by another broker under athis writtendivision exclusiveshall agencybe 102reactivated agreement,upon exclusiveproof right to sellthe orcommission leaseof listingthe agreement,removal 103of orthe exclusivedisability. purchaser agency agreement with respect to such 104 S.

(34) Having authorized or permitted a person to act as an agent in the capacity of a real estate broker, or a real estate salesperson, who was not then licensed as a real estate broker or real estate salesperson under this chapter or who was not then operating as an out-of-state commercial real estate broker or salesperson under section 4735.022 of the Revised Code;

(35) Having knowingly inserted or participated in inserting any materially inaccurate term in a document, including naming a false consideration;

(36) Having failed to inform the licensee's client of the existence of an offer or counteroffer or having failed to present an offer or counteroffer in a timely manner, unless otherwise instructed by the client, provided the instruction of the client does not conflict with any state or federal law;

(37) Having failed to comply with section 4735.24 of the Revised Code;

(38) Having acted as a broker without authority, impeded the ability of a principal broker to perform any of the duties described in section 4735.081 of the Revised Code, or impeded the ability a management level licensee to perform the licensee's duties;

(39) Entering into a right-to-list home sale agreement;

(40) Having failed to comply with section 5301.95 of the Revised Code while acting as a wholesaler of residential real property, as those terms are defined in that section.

(B) Whenever the commission, pursuant to section 4735.051 of the Revised Code, imposes disciplinary sanctions for any violation of this section, the commission also may impose such sanctions upon the broker with whom the salesperson is affiliated if the commission finds that the broker had knowledge of the salesperson's actions that violated this section.

(C) The commission shall, pursuant to section 4735.051 of the Revised Code, impose disciplinary sanctions upon any foreign real estate dealer or salesperson who, in that capacity or in handling the dealer's or salesperson's own property, is found guilty of any of the acts or omissions Am.

S.

155 Page136th 5G.A. As Passed by the Senate property except as provided for in section 4735.75 of the 105 Revised Code;

106specified (20) Having offered real property for sale or forcomprehended leasein 107division without(A) theof knowledgethis andsection consentinsofar ofas the owneracts or theomissions owner'spertain 108to authorizedforeign agent,real orestate. on any terms other than those authorized by 109 the owner or the owner's authorized agent;

110If (21)the Havingcommission publishedimposes advertising,such whethersanctions printed,upon radio,a 111foreign display,real orestate salesperson for a violation of anythis othersection, nature,the whichcommission wasalso misleadingmay suspend or 112revoke inaccuratethe inlicense anyof materialthe particular,foreign orreal inestate anydealer waywith havingwhom 113the misrepresentedsalesperson anyis properties,affiliated terms,if values,the policies,commission orfinds 114that servicesthe dealer had knowledge of the businesssalesperson's conducted;actions that violated this section.

115(D) (22)The Havingcommission knowinglymay withheldsuspend, fromin whole or inserted in anypart, 116the statementimposition of accountthe orpenalty invoiceof anysuspension statementof thata madelicense itunder 117this inaccuratesection. in any material particular;

118(E) (23)A Havingperson publishedlicensed orunder circulatedthis unjustifiedchapter who represents a party to a transaction or 119a unwarrantedproposed threatstransaction ofinvolving legalthe proceedingssale, whichpurchase, tendedexchange, tolease, or hadmanagement 120of thereal effectproperty ofthat harassingis competitorsor will be used in the cultivation, processing, dispensing, or intimidatingtesting theirof 121medical customers;marijuana under Chapter 3796.

122of (24)the HavingRevised failedCode, toor keepwho completereceives, andholds, accurateor recordsdisburses 123funds offrom all transactions for a periodreal ofestate threebrokerage yearstrust fromaccount thein dateconnection ofwith 124such thea transaction, suchshall recordsnot tobe includesubject copies of listing 125 forms, earnest money receipts, offers to purchasedisciplinary andsanctions 126under acceptancesthis ofchapter them,solely recordsbecause of receipts and disbursements of 127 all funds received by the licenseelicensed asperson brokerengaged andin incidentactivities topermitted theunder 128this licensee'schapter transactions as such, and records required pursuant 129 to divisions (C)(4) and (5) of section 4735.20 of the Revised 130 Code, and any other instruments or papers related to theactivities 131under performanceChapter of3796. any of the acts set forth in the definition of a 132 real estate broker;

133 S.

B.

No.

155 Page 6 As Passed by the Senate (25) Failure of a real estate broker or salesperson to 134 furnish all parties involved in a real estate transaction true 135 copies of all listings and other agreements to which they are a 136 party, at the time each party signs them;

137 (26) Failure to maintain at all times a special or trust 138 bank account in a depository of a state or federally chartered 139 institution located in this state.

The account shall be 140 noninterest-bearing, separate and distinct from any personal or 141 other account of the broker, and, except as provided in division 142 (A)(27) of this section, shall be used for the deposit and 143 maintenance of all escrow funds, security deposits, and other 144 moneys received by the broker in a fiduciary capacity.

The name, 145 account number, if any, and location of the depository wherein 146 such special or trust account is maintained shall be submitted 147 in writing to the superintendent.

Checks drawn on such special 148 or trust bank accounts are deemed to meet the conditions imposed 149 by section 1349.21 of the Revised Code.

Funds deposited in the 150 trust or special account in connection with a purchase agreement 151 shall be maintained in accordance with section 4735.24 of the 152 Revised Code.

153 (27) Failure to maintain at all times a special or trust 154 bank account in a depository of a state or federally chartered 155 institution in this state, to be used exclusively for the 156 deposit and maintenance of all rents, security deposits, escrow 157 funds, and other moneys received by the broker in a fiduciary 158 capacity in the course of managing real property.

This account 159 shall be separate and distinct from any other account maintained 160 by the broker.

The name, account number, and location of the 161 depository shall be submitted in writing to the superintendent.

162 This account may earn interest, which shall be paid to the 163 property owners on a pro rata basis.

164 S.

B.

No.

155 Page 7 As Passed by the Senate Division (A)(27) of this section does not apply to brokers 165 who are not engaged in the management of real property on behalf 166 of real property owners.

167 (28) Having failed to put definite expiration dates in all 168 written agency agreements to which the broker is a party;

169 (29) Having an unsatisfied final judgment or lien in any 170 court of record against the licensee arising out of the 171 licensee's conduct as a licensed broker or salesperson;

172 (30) Failing to render promptly upon demand a full and 173 complete statement of the expenditures by the broker or 174 salesperson of funds advanced by or on behalf of a party to a 175 real estate transaction to the broker or salesperson for the 176 purpose of performing duties as a licensee under this chapter in 177 conjunction with the real estate transaction;

178 (31) Failure within a reasonable time, after the receipt 179 of the commission by the broker, to render an accounting to and 180 pay a real estate salesperson the salesperson's earned share of 181 it;

182 (32) Performing any service for another constituting the 183 practice of law, as determined by any court of law;

184 (33) Having been adjudicated incompetent by a court, as 185 provided in section 5122.301 of the Revised Code.

A license 186 revoked or suspended under this division shall be reactivated 187 upon proof to the commission of the removal of the disability.

188 (34) Having authorized or permitted a person to act as an 189 agent in the capacity of a real estate broker, or a real estate 190 salesperson, who was not then licensed as a real estate broker 191 or real estate salesperson under this chapter or who was not 192 then operating as an out-of-state commercial real estate broker 193 S.

B.

No.

155 Page 8 As Passed by the Senate or salesperson under section 4735.022 of the Revised Code;

194 (35) Having knowingly inserted or participated in 195 inserting any materially inaccurate term in a document, 196 including naming a false consideration;

197 (36) Having failed to inform the licensee's client of the 198 existence of an offer or counteroffer or having failed to 199 present an offer or counteroffer in a timely manner, unless 200 otherwise instructed by the client, provided the instruction of 201 the client does not conflict with any state or federal law;

202 (37) Having failed to comply with section 4735.24 of the 203 Revised Code;

204 (38) Having acted as a broker without authority, impeded 205 the ability of a principal broker to perform any of the duties 206 described in section 4735.081 of the Revised Code, or impeded 207 the ability a management level licensee to perform the 208 licensee's duties;

209 (39) Entering into a right-to-list home sale agreement;

210 (40) Having failed to comply with section 5301.95 of the 211 Revised Code while acting as a wholesaler of residential real 212 property, as those terms are defined in that section.

213 (B) Whenever the commission, pursuant to section 4735.051 214 of the Revised Code, imposes disciplinary sanctions for any 215 violation of this section, the commission also may impose such 216 sanctions upon the broker with whom the salesperson is 217 affiliated if the commission finds that the broker had knowledge 218 of the salesperson's actions that violated this section.

219 (C) The commission shall, pursuant to section 4735.051 of 220 the Revised Code, impose disciplinary sanctions upon any foreign 221 S.

B.

No.

155 Page 9 As Passed by the Senate real estate dealer or salesperson who, in that capacity or in 222 handling the dealer's or salesperson's own property, is found 223 guilty of any of the acts or omissions specified or comprehended 224 in division (A) of this section insofar as the acts or omissions 225 pertain to foreign real estate.

If the commission imposes such 226 sanctions upon a foreign real estate salesperson for a violation 227 of this section, the commission also may suspend or revoke the 228 license of the foreign real estate dealer with whom the 229 salesperson is affiliated if the commission finds that the 230 dealer had knowledge of the salesperson's actions that violated 231 this section.

232 (D) The commission may suspend, in whole or in part, the 233 imposition of the penalty of suspension of a license under this 234 section.

235 (E) A person licensed under this chapter who represents a 236 party to a transaction or a proposed transaction involving the 237 sale, purchase, exchange, lease, or management of real property 238 that is or will be used in the cultivation, processing, 239 dispensing, or testing of medical marijuana under Chapter 3796.

240 of the Revised Code, or who receives, holds, or disburses funds 241 from a real estate brokerage trust account in connection with 242 such a transaction, shall not be subject to disciplinary 243 sanctions under this chapter solely because the licensed person 244 engaged in activities permitted under this chapter and related 245 to activities under Chapter 3796.

246 Sec.

(A) Except as otherwise provided in this 247 section, when earnest money connected to a real estate purchase 248 agreement is deposited in a real estate broker's trust or 249 special account, the broker shall maintain that money in the 250 account in accordance with the terms of the purchase agreement 251until S.one of the following occurs:

(1) The transaction closes and the broker disburses the earnest money to the closing or escrow agent or otherwise disburses the money pursuant to the terms of the purchase agreement.

(2) The parties provide the broker with separate written instructions that both parties have signed that specify how the broker is to disburse the earnest money and the broker acts pursuant to those instructions.

(3) The broker receives a copy of a final court order that specifies to whom the earnest money is to be awarded and the broker acts pursuant to the court order.

(4) The transaction is canceled by the record owner of residential property under division (C) (1) of section 5301.95 of the Revised Code, and the broker disburses the earnest money to the record owner pursuant to that division.

(5) The earnest money becomes unclaimed funds as defined in division (M)(2) of section 169.02 of the Revised Code and, after providing the notice that division (E) of section 169.03 of the Revised Code requires, the broker has reported the unclaimed funds to the director of commerce pursuant to section 169.03 of the Revised Code and has remitted all of the earnest money to the director.

(B) A purchase agreement may provide that in the event of a dispute regarding the disbursement of the earnest money, the broker will return the money to the purchaser without notice to the parties unless, within two years from the date the earnest money was deposited in the broker's trust or special account, the broker has received one of the following:

(1) Written instructions signed by both parties specifying how the money is to be disbursed;

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155 Page136th 10G.A. As Passed by the Senate until one of the following occurs:

252(2) (1)Written Thenotice transactionthat closesa andcourt theaction broker disburses the 253 earnest money to theresolve closing or escrow agent or otherwise 254 disburses the moneydispute pursuanthas tobeen thefiled. terms of the purchase 255 agreement.

256(C)(1) (2)If Thethe parties providedispute the brokerdisbursement withof separatethe writtenearnest 257money instructionsand thatthe bothpurchase partiesagreement havecontains signedthe thatprovision specifydescribed howin division (B) of this section, not later than the 258first brokerday isof toSeptember disbursefollowing the two year anniversary date of the deposit of the earnest money andin the broker's account, the broker actsshall 259return pursuantthe earnest money to thosethe instructions.purchaser unless the parties provided the broker with written instructions or a notice of a court action as described in division (B) of this section.

260(2) (3)If Thethe broker receivescannot alocate copythe ofpurchaser aat finalthe courttime orderthe disbursement is due, after providing the notice that 261division specifies(E) toof whomsection 169.03 of the Revised Code requires, the broker shall report the earnest money isas tounclaimed befunds awardedto and the 262director brokerof actscommerce pursuant to section 169.03 of the courtRevised order.Code and remit all of the earnest money to the director.

263Sec. (4) The transaction is canceled by the record owner of 264 residential property under division (C)(1) of section 5301.95 of 265 the Revised Code, and the broker disburses the earnest money to 266 the record owner pursuant to that division.

267 (5) The earnest money becomes unclaimed funds as defined 268 in division (M)(2) of section 169.02 of the Revised Code and, 269 after providing the notice that division (E) of section 169.03 270 of the Revised Code requires, the broker has reported the 271 unclaimed funds to the director of commerce pursuant to section 272 169.03 of the Revised Code and has remitted all of the earnest 273 money to the director.

274 (B) A purchase agreement may provide that in the event of 275 a dispute regarding the disbursement of the earnest money, the 276 broker will return the money to the purchaser without notice to 277 the parties unless, within two years from the date the earnest 278 money was deposited in the broker's trust or special account, 279 the broker has received one of the following:

280 S.

B.

No.

155 Page 11 As Passed by the Senate (1) Written instructions signed by both parties specifying 281 how the money is to be disbursed;

282 (2) Written notice that a court action to resolve the 283 dispute has been filed.

284 (C)(1) If the parties dispute the disbursement of the 285 earnest money and the purchase agreement contains the provision 286 described in division (B) of this section, not later than the 287 first day of September following the two year anniversary date 288 of the deposit of the earnest money in the broker's account, the 289 broker shall return the earnest money to the purchaser unless 290 the parties provided the broker with written instructions or a 291 notice of a court action as described in division (B) of this 292 section.

293 (2) If the broker cannot locate the purchaser at the time 294 the disbursement is due, after providing the notice that 295 division (E) of section 169.03 of the Revised Code requires, the 296 broker shall report the earnest money as unclaimed funds to the 297 director of commerce pursuant to section 169.03 of the Revised 298 Code and remit all of the earnest money to the director.

299 Sec.

300 (1) "Residential real property" means real property that 301 is improved by a building or other structure that has one to 302 four dwelling units.

303 (2)(a) "Wholesaler" means a person or entity that for a 304 fee, commission, or other valuable consideration, or with the 305 intention, in the expectation, or upon the promise of receiving 306 or collecting a fee, commission, or other valuable 307 consideration, enters into a purchase contract for residential 308 real property either:

309(i) S.As the grantee, and assigns or novates that contract to another person or entity;

(ii) As the grantor, and, without holding legal title to that real property, assigns or novates that contract to another person or entity.

(b) "Wholesaler" does not include either of the following:

(i) An individual who assigns or novates a contract described in division (A)(2)(a) of this section to another individual who is related by blood.

(ii) A person or entity that assigns or novates such a contract to a parent, affiliate, subsidiary, or affiliated group under common control with the person or entity.

(B)(1) Before entering into a binding contract that transfers an interest in residential real property, a wholesaler acting as the grantee or the wholesaler's representative, if applicable, shall provide to the record owner a conspicuous written disclosure statement, separate from the purchase contract or agreement, printed in boldface type in a font size not less than twelve points, and 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 Am.

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155 Page136th 12G.A. As Passed by the Senate (i) As the grantee, and assigns or novates that contract 310 to another person or entity;

311contract (ii)to Asacquire thean grantor,interest and,in withoutresidential holdingreal legalproperty titleunless tothis 312statement thatis realsigned property,and assignsdated orby novatesthe thatrecord contractowner toof anotherthe 313property. person or entity.

314The (b)owner "Wholesaler"acknowledges doesthat notthe includeperson eitherpresenting this document is a wholesaler, as defined by section 5301.95 of the following: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.

315A (i)wholesaler Anis individualacting whoon assignsthe orwholesaler's novatesown abehalf contractand 316does describednot inrepresent divisionthe (A)(2)(a)owner ofin this sectiontransaction. to another 317 individual who is related by blood.

318 (ii) A personwholesaler orenters entityassignable thatcontracts assignswith orowners novatesand suchseeks a 319 contract to asell parent, affiliate, subsidiary, or affiliatedassign groupthe 320wholesaler's underinterest commonfor controla withprofit. the person or entity.

321The (B)(1) Before entering into a binding contract that 322 transfers an interest in residential real property, a wholesaler 323may actingassign as the grantee or the wholesaler's representative,interest ifin 324 applicable, shall provide to the record owner a conspicuous 325 written disclosure statement, separate from the purchase 326 contract orto agreement, printed in boldface type in a fontthird sizeparty 327without not less than twelve points, and in substantially the followingowner's 328consent form:before closing.

329The "Ohio law requires a wholesaler actingmay ascharge a grantee,fee 330 before entering into a contract or agreement that conveys an 331 interest in residential real property, to provide certain 332 information to the recordthird-party ownerbuyer inseparately afor conspicuousprofit. manner printed 333 in boldface type in a font size not less than twelve points.

334The Failureagreed bypurchase aprice wholesalerbetween tothe presentowner orand completewholesaler thismay formbe isbelow anmarket 335value unfairand oris deceptiveconveyed actvoluntarily. or practice.

AnyThe personowner whoacknowledges entersdisclosure intoof 336the aninformation agreementprovided that conveys an interest in residentialthis realform 337by propertysigning toand adating wholesalerbelow: acting as a grantee without receiving 338 S.

_______________ (Property owner signature) ______ (date) _______________ (Wholesaler signature) _____ (date)" (2) A wholesaler acting as the grantee shall not enter into a binding contract that transfers an interest in residential real property until both the wholesaler and the record owner of the property sign and date the disclosure statement required by this section.

(C)(1) If a wholesaler acting as the grantee fails to make the disclosures required by this section before entering into a binding contract that transfers an interest in residential real property, the record owner of the residential real property may cancel the contract at any time prior to the close of escrow without penalty and the escrow or closing agent, as defined in section 1349.20 of the Revised Code, shall disburse any earnest money paid by the wholesaler to the record owner within thirty days after such cancelation.

(2) No provision of this section shall be modified or waived by any oral or written agreement.

Any portion of an agreement that is executed, modified, or extended after the effective date of this section that modifies or waives a duty under division (B) of this section or a remedy under division (C) of this section is void ab initio and unenforceable.

(3) Any violation of this section is an unfair or deceptive act or practice in violation of section 1345.02 of the Revised Code.

A party that enters into an agreement without receiving the disclosures required in this section has a cause of action against a wholesaler and is entitled to the same relief available to a consumer under section 1345.09 of the Revised Code.

All powers and remedies available to the attorney general to enforce sections 1345.01 to 1345.13 of the Revised Code are available to the attorney general to enforce this section.

SECTION 2.

That existing sections 4735.18 and 4735.24 of the Revised Code are hereby repealed.

Am.

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155 Page136th 13G.A. As Passed by the Senate this disclosure has a cause of action against the wholesaler.

ASpeaker 339___________________ wholesalerof acting as a grantee is prohibited from entering into 340 a binding contract to acquire an interest in residential real 341 property unless this statement is signed and dated by the recordHouse 342 owner of theRepresentatives. property.

343President The___________________ owner acknowledges that the person presenting this 344 document is a wholesaler, as defined by section 5301.95 of the 345Senate. Revised Code, and that the owner is advised to seek legal advice 346 before entering into any agreement or contract with the 347 wholesaler.

APassed wholesaler________________________, is20____ actingApproved on________________________, the20____ wholesaler'sGovernor. own 348 behalf and does not represent the owner in this transaction.

AAm. 349 wholesaler enters assignable contracts with owners and seeks to 350 sell or assign the wholesaler's interest for a profit.

TheS. 351 wholesaler may assign the wholesaler's interest in the purchase 352 contract to a third party without the owner's consent before 353 closing.

The wholesaler may charge a fee to the third-party 354 buyer separately for profit.

The agreed purchase price between 355 the owner and wholesaler may be below market value and is 356 conveyed voluntarily.

357 The owner acknowledges disclosure of the information 358 provided in this form by signing and dating below:

359 _______________ (Property owner signature) ______ (date) 360 _______________ (Wholesaler signature) _____ (date)" 361 (2) A wholesaler acting as the grantee shall not enter 362 into a binding contract that transfers an interest in 363 residential real property until both the wholesaler and the 364 record owner of the property sign and date the disclosure 365 statement required by this section.

366 (C)(1) If a wholesaler acting as the grantee fails to make 367 S.

155 Page136th 14G.A. As Passed by the Senate the disclosures required by this section before entering into a 368 binding contract that transfers an interest in residential real 369 property, the record owner of the residential real property may 370 cancel the contract at any time prior to the close of escrow 371 without penalty and the escrow or closing agent, as defined in 372 section 1349.20 of the Revised Code, shall disburse any earnest 373 money paid by the wholesaler to the record owner within thirty 374 days after such cancelation.

375The (2)section Nonumbering provisionof law of thisa sectiongeneral shalland bepermanent modifiednature oris 376complete waivedand byin anyconformity oralwith orthe writtenRevised agreement.Code.

AnyDirector, portionLegislative ofService anCommission. 377 agreement that is executed, modified, or extended after the 378 effective date of this section that modifies or waives a duty 379 under division (B) of this section or a remedy under division 380 (C) of this section is void ab initio and unenforceable.

381Filed (3)in Anythe violationoffice of thisthe sectionSecretary isof anState unfairat orColumbus, 382Ohio, deceptiveon actthe or____ practiceday in violation of section___________,A. 1345.02 of the 383 Revised Code.

AD. party that enters into an agreement without 384 receiving the disclosures required in this section has a cause 385 of action against a wholesaler and is entitled to the same 386 relief available to a consumer under section 1345.09 of the 387 Revised Code.

All20____. powers and remedies available to the attorney 388 general to enforce sections 1345.01 to 1345.13 of the Revised 389 Code are available to the attorney general to enforce this 390 section.

391Secretary Sectionof 2.State.

ThatFile existingNo. sections 4735.18 and 4735.24 of 392 the Revised Code are hereby repealed.

393_________ Effective Date ___________________