Ohio Real Estate Practices

An attorney licensed to practice law in Ohio must prepare deeds, powers of attorney, and other instruments that are to be recorded. One exception is that a party to the transaction may prepare an instrument in which they are a party. General closing documents that will not be recorded can be prepared by a non-attorney provided they are not contractual in nature. For instance, only attorneys can prepare sales agreements, with the exception that realtors in Ohio may also prepare sales agreements. A non-attorney can prepare a document that will be recorded, if that document is self-prepared for the preparer’s benefit (for instance, a power of attorney) and does not affect the rights of others. A deed could likewise be self-prepared in a situation where it is from grantor to grantor’s trust or LLC.

All documents to be recorded must be prepared by an attorney other than the limited exceptions discussed above.

A non-attorney may perform searches and examinations, sign documents, close transactions and disburse escrow funds.

A non-attorney may not render an opinion of title.

A cancellation fee is permitted to be charged only if the transaction for which the commitment was issued is completed and no insurance is purchased.

Only a lender has the authority to release a security instrument. The lender or lender’s counsel prepares the release.

All deeds are insurable. Customarily, a general warranty deed is used in both residential and commercial transactions.

Yes, Ohio Code 1349.20 to 1349.22 (9-4-19)

Non-title holding spouses are required to release dower interest in a deed of conveyance or a mortgage deed. Spouse cannot release or waive dower, except by joinder in such instrument.

Civil unions are not recognized in Ohio.

None.

(a) Owner’s Policy?
(b) Transfer Tax & Recording Fee?
(c) Survey Charges?
(d) Closing/Settlement Fees?

(a) Owner’s policy: Varies throughout the state. Subject to the terms of the sales contract.
(b) Transfer tax: Seller; Recording fee: Buyer
(c) Survey charges: Buyer
(d) Closing/settlement charges: Both parties.

Only a duly licensed and appointed issuing agent may sign a policy.

The issuing agent does not need to be an Ohio resident, but must be licensed by the Ohio Department of Insurance.

Taxes are paid a year in arrears, and in semi-annual installments. Due dates vary from county to county, but are generally due in January and June.

Lien dates and delinquency dates can vary in each of the 88 counties; however, a majority of the counties set the semi-annual due dates sometime in January and June.

The tax statutes are extensive, and found generally in Revised Code Chapters 5713 and 5721.

Please consult with a local underwriter for information relating to real estate taxes on the subject property.

Marketable Title requires a search of at least 40 years from root of title, as set forth in Revised Code Sections 5301.47 et seq.

Ohio Standards of Title Examination as promulgated by the Ohio State Bar Association likewise refer to ORC 5301.47 et seq.

It is customary to charge a separate search and exam fee. The amount of such charges is determined by the issuing agent, and the amount varies depending on which area of the state the property is situated.

Who can be listed as the trustee on the Deed of Trust (e.g., residency and/or natural person requirements, etc.)? Can an underwriter or title agent be designated as the trustee, and, if so, is it customary?

Ohio is a Mortgage Deed jurisdiction.

OHIO STANDARD EXCEPTIONS

1) Rights or claims of parties other than Insured in actual possession of any or all the property.

2) Any lien, mechanic's lien, or materialman’s lien or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law, and not shown by the Public Records.

3) Public or private easements, or claims of easements, not shown by the public record.

4) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land. The term “encroachment" includes encroachments of existing improvements located on the Land onto adjoining land, and encroachments onto the Land of existing improvements located on adjoining land.

5) Anything to the contrary notwithstanding, this policy does not insure the quantity of acreage, square footage, or accuracy of dimensions recited within the description of premises described in Schedule A.

6) Minerals of whatsoever kind, subsurface and surface substances, including but not limited to coal, lignite, oil, gas, uranium, clay, rock, sand, and gravel in, on, under and that may be produced from the Land, together with all rights, privileges, and immunities relating thereto, whether appearing in the Public Records or listed in Schedule B. The Company makes no representation as to the present ownership of any such interests. There may be leases, grants, exceptions or reservations of interests that are not listed.

7) Taxes or assessments which are not recorded as existing liens in the Public Records.

8) (Note: This is exception is for loan policies only) Subject to any oil and/or gas lease, pipeline agreement, or other instrument related to the production or sale of oil or natural gas which may arise after the Date of the Policy.

Ohio has state specific forms that are promulgated by the Ohio Title Insurance Rating Bureau. Since many of the "built in" coverages of the various policies are rated endorsements/coverages, these are made optional through a "check the box" inclusion.

The Ohio Rating Bureau no longer has an independent website. All inquiries go through its service provider, Demotech, available at: https://www.demotech.com/

Transfer taxes are collected throughout the state. The amount varies by county, and may be anywhere from $1.00 per $1000.00 of value transferred to $4.00 per $1000.00 of value transferred.

Yes, usury coverage is available.

Generally, usury coverage is available only on loans in excess of $100,000.00 or business loans.
The Ohio’s usury law link is: http://codes.ohio.gov/orc/1343.01

There are no separate withholding requirements on the state level.

Witnesses are no longer required.