How a wholesale assignment works in Ohio, including the 2026 disclosure law

The pieces

There are two contracts. The first is between the wholesaler and the property owner: a purchase agreement that allows the buyer to assign their interest. The second is between the wholesaler and you: an assignment agreement that transfers the wholesaler's rights and obligations under the first contract to you, for a fee.

At closing the title company prepares one deed from the owner to you. The owner receives the contract price. The wholesaler receives the assignment fee. You pay the total, which is the price shown on this site.

Step by step

You send an offer from the property page. We agree terms, usually the same day. You sign the assignment agreement and wire earnest money to the title company within 48 hours, typically two to five thousand dollars depending on the price. The title company runs a title search and prepares closing. You do your inspections and line up your funds. You close on the date in the original purchase contract, normally 14 to 21 days from acceptance.

Earnest money is refundable only for the reasons written in the agreement, usually a title defect. It is not refundable because you changed your mind, and that is the trade for the discount.

What the 2026 law requires

Ohio Revised Code section 5301.95 took effect on 2 March 2026. It defines a wholesaler as anyone who contracts to buy residential property of one to four units intending to assign the contract for a fee, and it requires that wholesaler to give the owner a written disclosure, in bold twelve point type, signed and dated by the owner, before any binding contract is signed.

The disclosure says the buyer is a wholesaler, is acting for themselves and not for the owner, may assign the contract to a third party without the owner's consent, may charge that third party a fee, and that the price may be below market value. If the wholesaler skips it, the owner can cancel before closing without penalty and keep the wholesaler's earnest money, and the failure counts as an unfair practice under Ohio consumer law.

We give that disclosure to every owner. The full text is on our wholesaler disclosure page. For you as the assignee, the practical effect is that a deal from a wholesaler who followed the law is a stable deal. A deal from one who did not can evaporate the week before closing.

Questions to ask any wholesaler

Do you have the property under contract in your own name or your company's name, and can I see it? Did the owner sign the 5301.95 disclosure? Is the earnest money held by a title company? What is the closing date in the underlying contract? If the answers are vague, walk away. If they are quick and specific, you are probably dealing with someone who does this properly.

Written by Solomon Sparks, Closing Columbus. General information for investors, not legal or financial advice. Talk to an Ohio attorney or your lender about your own situation.