Bulletin: OH2023003

Dear Associates:

The newly enacted Save Our Farmland and Protect Our National Security Act ("Act"), codified in Ohio Revised Code Section 5301.256 requires the Secretary of State to compile and publish a registry of individuals, businesses, organizations, and governments that constitute a threat to the agricultural production of Ohio. The Secretary of State, in compiling this registry, must consult certain federal government lists of foreign adversaries, terrorist organizations, and sanctioned persons listed below. Persons that appear on these lists are prohibited from acquiring agricultural land in the state. Prohibited individuals and organizations:

• Foreign Adversaries
• Terrorist Exclusion List
• State Sponsors of Terrorism
• Presidential Executive Order 13224
• Presidential Executive Order 13268

If the Secretary of State finds that a person listed on the registry or an agent, trustee, or fiduciary thereof, has acquired, or holds title to, or interest in, agricultural land in this state in violation of this section, the Secretary of State shall report the violation to the Attorney General. Upon receipt of the report from the Secretary of State, the Attorney General shall initiate an action in the court of common pleas of any county in which the agricultural land is located seeking relief in accordance with this section. If the court finds that the agricultural land in question has been acquired or held in violation of this section, it shall do all the following:

(a) Enter an order so declaring;
(b) File a copy of the order with the county recorder of each county in which any portion of the agricultural land is located;
(c) Declare the agricultural land escheated to the state;
(d) Order that the escheated agricultural land be sold pursuant to Chapter 2329 of the Revised Code in the same manner as a foreclosure on a mortgage, except that there shall be no opportunity for redemption under section 2329.33 of the Revised Code.

Agents may find it difficult to determine whether the statute applies to a particular parcel of real property. Therefore, you should assume that the property involved in your transaction is subject to the restrictions of the statute. As this law is based upon the state's exercise of its governmental police powers it would be excluded from coverage pursuant to Exclusion 1 of the policies, among other Exclusions. Since the impact and scope of the law is not entirely clear it is important a buyer is aware of this law and that the title policy is not providing coverage over any violation or failure to comply with this law. The following exception should be included in every commitment/policy issued unless otherwise waived by Stewart underwriting:

Ohio law, effective October 3, 2023, prohibits ownership of real property by certain foreign parties. This law can be found at O.R.C. §5301.256. Any loss or damage incurred because of a violation of this law is excluded from coverage under the terms of a title insurance policy.

Stewart Title offices and agents are not authorized to insure a transaction that is known to violate the Act.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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