Ohio REALTORS Testifies on Buyer Representation Agreements and Wholesaling
Ohio REALTORS Promote the Need for Buyer Representation Agreements and Protections Against Predatory Wholesaling Practices
By Andrew Huffman, Ohio REALTORS Asst. VP of Government Affairs
Andrew Huffman, Ohio REALTORS Asst. VP of Government Affairs testified before the Senate Select Committee on Housing where he updated lawmakers on the need to require written buyer representation agreements and on the dangers real estate wholesalers pose to Ohio’s homeowners.
Ohio REALTORS has long supported the use of written representation agreements. Due to industry changes and the pending lawsuits against the National Association of REALTORS, obtaining representation agreements is more important than ever. Huffman asked committee members to amend state law to set a standard for the use of written representation agreements by real estate brokers.
“By requiring written representation agreements, homebuyers will have a clear understanding of what services they should expect as well as the commission structure of their broker. It will also provide security and assurances to a brokerage before the spend countless hours with a client," Huffman said.
While legislation requiring the use of written representation agreements has yet to be introduced, Ohio REALTORS is working with stakeholders on drafting a proposal and is educating lawmakers on why this issue is so important to the industry and consumers alike.
Ohio REALTORS have also heard more concerns about the practice of real estate wholesaling and how it robs vulnerable Ohioans of equity in their homes. In response, Ohio REALTORS worked with Senator Andy Brenner (R-Delaware) to introduce SB 192 to regulate wholesaling activity and require disclosure be provided to homeowners before they enter into a contract. In urging committee members to support SB 192
“Wholesalers deceive vulnerable homeowners into believing that the wholesaler is purchasing the property and they capitalize off a homeowner’s lack of knowledge about the value of their home. Their business model depends on obtaining a property at the lowest price possible, so they offer far below market value hoping to be able to re-sell the contract for the actual market price, depriving Ohioans from equity in their home,” said Huffman.
Additional information about SB 192 can be found through the following link: Senate Bill 192 | 135th General Assembly | Ohio Legislature
Video coverage of the Senate Select Committee on Housing can be viewed here: Ohio Senate Select Committee on Housing | The Ohio Channel
