OH Underwriting Summary

Search/Exam

• Minimum Search Requirements -- Reasonable Search (Marketable Title Act – 40 years) 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
• Plant or other search restrictions -- No
• Additional Requirements for REO Searches -- No
• Foreclosure Checklist -- N/A
• Special Searches Required (Code, HOA, Utilities)? --
• Survey Requirements -- No

UPL

• An attorney licensed to practice law in Ohio must prepare deeds, powers of attorney, and other instruments that are to be recorded.
  • Exception 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.
• 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.

Ohio is very strict in enforcing against title agencies that prepare deeds without attorney. If the agent has an Ohio attorney on staff, the attorney can prepare a deed or others working under the attorney’s direct supervision can do so. Ohio Rules of Professional Responsibility require all attorneys to report the unauthorized practice of law.

The Ohio Supreme Court typically levies a fine of $10,000 per deed prepared. Kim Dalton and Precision Land Title got a $20,000 fine for their deed prep:

Vesting

• Sole Ownership
• Tenants in Common
• Join Tenants with Right of Survivorship. The right of survivorship must be specifically described in the document that creates it.
• Tenancy by the Entireties no longer exists in Ohio, but may be seen in some older deeds.

Witness Requirements

• Witnesses are no longer required.

Property Tax

• 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.

Mortgage/Transfer Tax

• No Mortgage Tax
• 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.

Spousal Joinder Requirements/Homestead

• 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.

Who May Serve As Trustee On Deed Of Trust

• Ohio is a Mortgage Deed jurisdiction

Time Limitations

• US Judgment Liens -- 20 years, renewable for 20 years
• State Court Judgment Liens -- 5 years, can be renewed
• Federal Tax Liens -- 10 years (+30 days); can be refiled
• State Tax Liens -- Do not expire effective 9/26/2003; previously 10 years
• Estate Tax Lien -- Federal 10 years
• State Inheritance Tax Liens -- 10 years
• Mechanics Liens -- 6 years
• Financing Statements -- 5 years
• Mortgages --
• HOA Liens -- 5 years
• Condominium assessments --
• Child Support Liens --

Odd Stuff

• 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
• 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