As Reported by House Ways and Means Committee 1
123rd General Assembly 4
Regular Session Sub. H. B. No. 533 5
1999-2000 6
REPRESENTATIVES D. MILLER-DePIERO-REDFERN-GRENDELL-ALLEN- 8
PATTON-FLANNERY-MOTTLEY-JERSE-PERRY-DISTEL-JOLIVETTE 9
_________________________________________________________________ 10
A B I L L
To amend sections 5721.37, 5721.38, and 5721.39 of 12
the Revised Code to extend the time limit within 13
which holders of tax certificates purchased
through private sales may request foreclosure, 14
but retain the limit on the accrual of interest 15
on those certificates.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 17
Section 1. That sections 5721.37, 5721.38, and 5721.39 of 19
the Revised Code be amended to read as follows: 20
Sec. 5721.37. (A)(1) With respect to a tax certificate 29
purchased under section 5721.32 of the Revised Code, at any time 30
after one year from the date shown on the tax certificate as the 31
date the tax certificate was sold, and not later than three years 32
after that date, the certificate holder may file with the county 34
treasurer a request for foreclosure on a form prescribed by the 35
tax commissioner and provided by the county treasurer, provided 36
the parcel has not yet been redeemed under division (A) or (C) of 37
section 5721.38 of the Revised Code. 38
(2) With respect to a tax certificate purchased under 40
section 5721.33 of the Revised Code, at any time after one year 41
from the date shown on the tax certificate as the date the tax 43
certificate was sold, and not later than three SIX years after 44
that date or any extension of that date pursuant to division 45
(C)(2) of section 5721.38 of the Revised Code, a private attorney 46
on behalf of the certificate holder may file with the county 48
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treasurer a notice of intent to foreclose on a form prescribed by 49
the tax commissioner and provided by the county treasurer,
provided the parcel has not yet been redeemed under division (A) 50
or (C) of section 5721.38 of the Revised Code. 51
(B) Along with a request filed under division (A)(1) of 53
this section, or a notice of intent to foreclose filed under 54
division (A)(2) of this section and prior to the transfer of 55
title in connection with foreclosure proceedings filed under 56
division (F) of this section, the certificate holder shall submit 59
a payment to the treasurer equal to the sum of the following: 60
(1) The certificate redemption prices of any other prior 62
tax certificates that have been sold on the parcel; 63
(2) Any prior delinquent taxes, assessments, penalties, 65
interest, and charges that are charged against the certificate 66
parcel that is the subject of the foreclosure proceedings and 67
that are not covered by a tax certificate; 68
(3) If the foreclosure proceedings are filed by the county 70
prosecuting attorney pursuant to section 323.25, 5721.14, or 71
5721.18 of the Revised Code, a fee in the amount prescribed by 72
the county prosecuting attorney to cover the prosecuting 73
attorney's legal costs incurred in the foreclosure proceeding; 74
(4) If the foreclosure proceedings are filed by a private 76
attorney on behalf of the certificate holder pursuant to division 77
(F) of this section, any other prior liens. 78
(C)(1) With respect to a certificate purchased under 80
section 5721.32 of the Revised Code, if the certificate parcel 81
has not been redeemed, the county treasurer shall provide 84
certification to the county prosecuting attorney that the parcel 85
has not been redeemed and that the certificate holder has made a 86
foreclosure request. Within ninety days of receiving that 87
certification, the prosecuting attorney shall commence a 88
foreclosure proceeding in the name of the county treasurer in the 89
manner provided under section 323.25, 5721.14, or 5721.18 of the 90
Revised Code, to foreclose the lien vested in the certificate 91
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holder by the certificate. The prosecuting attorney shall attach 92
to the complaint the county treasurer's certification that the 93
parcel has not been redeemed.
(2) With respect to a certificate purchased under section 95
5721.33 of the Revised Code, if the certificate parcel has not 97
been redeemed, the county treasurer shall provide certification 98
to the private attorney that the parcel has not been redeemed. 99
After receipt of that certification, the private attorney may
commence a foreclosure proceeding in the name of the certificate 100
holder in the manner provided under division (F) of this section, 101
to foreclose the lien vested in the certificate holder by the 103
certificate. The private attorney shall attach to the complaint 104
the county treasurer's certification that the parcel has not been 105
redeemed.
(D) The county treasurer shall credit the amount received 108
under division (B)(1) of this section to the tax certificate 110
redemption fund. The tax certificates respecting the payment 111
shall be redeemed as provided in division (E) of section 5721.38 112
of the Revised Code. The amount received under division (B)(2) 114
of this section shall be distributed to the taxing districts to 115
which the delinquencies are owed. The treasurer shall deposit 116
the fee received under division (B)(3) of this section in the 118
county treasury to the credit of the delinquent tax and 119
assessment collection fund. The amount received under division 120
(B)(4) of this section shall be distributed to the holder of the 121
prior lien. 122
(E)(1) If, in the case of a certificate purchased under 124
section 5721.32 of the Revised Code, the certificate holder does 125
not file with the county treasurer a request for foreclosure 128
along with the required payment within three years after the date 129
shown on the tax certificate as the date the certificate was 130
sold, and during that period the parcel is not redeemed or 131
foreclosed upon, the certificate holder's lien against the parcel 132
for the amount of delinquent taxes, assessments, penalties, 133
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interest, and charges that make up the certificate purchase price 134
is canceled.
(2)(a) If, in the case of a certificate purchased under 136
section 5721.33 of the Revised Code, the certificate holder does 139
not file with the county treasurer a notice of intent to 140
foreclose with respect to a certificate parcel within three SIX 141
years after the date shown on the tax certificate as the date the 142
certificate was sold or any extension of that date pursuant to 143
division (C)(2) of section 5721.38 of the Revised Code, and 144
during that period the parcel is not redeemed, the certificate 146
holder's lien against the parcel for the amount of delinquent
taxes, assessments, penalties, interest, and charges that make up 147
the certificate purchase price is canceled, SUBJECT TO DIVISION 149
(E)(2)(b) OF THIS SECTION.
(b) IN THE CASE OF ANY TAX CERTIFICATE PURCHASED UNDER 151
SECTION 5721.33 OF THE REVISED CODE PRIOR TO THE EFFECTIVE DATE 152
OF THIS AMENDMENT, THE COUNTY TREASURER, UPON APPLICATION BY THE 153
CERTIFICATE HOLDER, MAY SELL TO THE CERTIFICATE HOLDER A NEW 154
CERTIFICATE EXTENDING THE THREE-YEAR PERIOD PRESCRIBED BY 157
DIVISION (E)(2) OF THIS SECTION, AS THAT DIVISION EXISTED PRIOR 158
TO THAT EFFECTIVE DATE, TO SIX YEARS AFTER THE DATE SHOWN ON THE
ORIGINAL CERTIFICATE AS THE DATE IT WAS SOLD OR ANY EXTENSION OF 160
THAT DATE. THE COUNTY TREASURER AND THE CERTIFICATE HOLDER SHALL 161
NEGOTIATE THE PREMIUM, IN CASH, TO BE PAID FOR THE NEW 162
CERTIFICATE SOLD UNDER THIS SECTION. IF THE COUNTY TREASURER AND 163
CERTIFICATE HOLDER DO NOT NEGOTIATE A MUTUALLY ACCEPTABLE 164
PREMIUM, THE COUNTY TREASURER AND CERTIFICATE HOLDER MAY AGREE TO 165
ENGAGE A PERSON EXPERIENCED IN THE VALUATION OF FINANCIAL ASSETS 166
TO APPRAISE A FAIR PREMIUM FOR THE NEW CERTIFICATE. THE 167
CERTIFICATE HOLDER HAS THE OPTION TO PURCHASE THE NEW CERTIFICATE 168
FOR THE FAIR PREMIUM SO APPRAISED. NOT LESS THAN ONE-HALF OF THE 169
FEE OF THE PERSON SO ENGAGED SHALL BE PAID BY THE CERTIFICATE 170
HOLDER REQUESTING THE NEW CERTIFICATE; THE REMAINDER OF THE FEE 171
SHALL BE PAID FROM THE PROCEEDS OF THE SALE OF THE NEW 172
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CERTIFICATE. IF THE CERTIFICATE HOLDER DOES NOT PURCHASE THE NEW 173
CERTIFICATE FOR THE PREMIUM SO APPRAISED, THE CERTIFICATE HOLDER 174
SHALL PAY THE ENTIRE FEE. THE COUNTY TREASURER SHALL CREDIT THE 175
REMAINING PROCEEDS FROM THE SALE TO THE ITEMS OF TAXES, 176
ASSESSMENTS, PENALTIES, INTEREST, AND CHARGES IN THE ORDER IN 177
WHICH THEY BECAME DUE.
A CERTIFICATE ISSUED UNDER THIS DIVISION VESTS IN THE 180
CERTIFICATE HOLDER AND ITS SECURED PARTY, IF ANY, THE SAME 181
RIGHTS, INTERESTS, PRIVILEGES, AND IMMUNITIES AS ARE VESTED BY 182
THE ORIGINAL CERTIFICATE UNDER SECTIONS 5721.30 TO 5721.41 OF THE 183
REVISED CODE, EXCEPT THAT INTEREST PAYABLE UNDER DIVISION (B) OF 184
SECTION 5721.38 OR DIVISION (B) OF SECTION 5721.39 OF THE REVISED 185
CODE SHALL BE SUBJECT TO THE AMENDMENTS TO THOSE DIVISIONS BY 186
SUB. H.B. 533 OF THE 123rd GENERAL ASSEMBLY. THE CERTIFICATE 189
SHALL BE ISSUED IN THE SAME FORM AS THE FORM PRESCRIBED FOR THE
ORIGINAL CERTIFICATE ISSUED EXCEPT FOR ANY MODIFICATIONS 190
NECESSARY, IN THE COUNTY TREASURER'S DISCRETION, TO REFLECT THE 192
EXTENSION UNDER THIS DIVISION OF THE CERTIFICATE HOLDER'S LIEN TO 193
SIX YEARS AFTER THE DATE SHOWN ON THE ORIGINAL CERTIFICATE AS THE 194
DATE IT WAS SOLD OR ANY EXTENSION OF THAT DATE. THE CERTIFICATE 195
HOLDER MAY RECORD A CERTIFICATE ISSUED UNDER DIVISION (E)(2)(b) 197
OF THIS SECTION OR MEMORANDUM THEREOF AS PROVIDED IN DIVISION (B) 198
OF SECTION 5721.35 OF THE REVISED CODE, AND THE COUNTY RECORDER 199
SHALL INDEX THE CERTIFICATE AND RECORD ANY SUBSEQUENT 200
CANCELLATION OF THE LIEN AS PROVIDED IN THAT SECTION. THE SALE 201
OF A CERTIFICATE EXTENDING THE LIEN UNDER DIVISION (E)(2)(b) OF 202
THIS SECTION DOES NOT IMPAIR THE RIGHT OF REDEMPTION OF THE OWNER 204
OF RECORD OF THE CERTIFICATE PARCEL OR OF ANY OTHER PERSON 205
ENTITLED TO REDEEM THE PROPERTY. 206
(F) With respect to tax certificates purchased under 208
section 5721.33 of the Revised Code, upon the delivery to the 209
certificate holder by the county treasurer of the certification 211
provided for under division (C)(2) of this section, a private 212
attorney may institute a foreclosure proceeding under this 213
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division in the name of the certificate holder to foreclose such
holder's lien, in any court with jurisdiction, unless the 214
certificate redemption price is paid prior to the time a 215
complaint is filed. The attorney shall prosecute the proceeding 216
to final judgment and satisfaction, whether through sale of the
property or the vesting of title and possession in the 217
certificate holder. If there is a copy of a written undertaking 218
under section 323.31 of the Revised Code attached to the tax 220
certificate or if a copy of such an undertaking is received from
the county treasurer prior to the commencement of the proceeding 221
under this division, the attorney shall not institute the 222
proceeding under this division, unless the attorney receives a 223
certification of the treasurer that such undertaking has become 224
void in accordance with section 323.31 of the Revised Code.
The foreclosure proceedings under this division, except as 226
otherwise provided in this division, shall be instituted and 227
prosecuted in the same manner as is provided by law for the 228
foreclosure of mortgages on land, except that, if service by 229
publication is necessary, such publication shall be made once a 230
week for three consecutive weeks and the service shall be
complete at the expiration of three weeks after the date of the 231
first publication.
Any notice given under this division shall include the name 233
of the owner of the parcel as last set forth in the records of 234
the county recorder, the owner's last known mailing address, the 235
address of the subject parcel if different from that of the 236
owner, and a complete legal description of the subject parcel. 237
In any county that has adopted a permanent parcel number system, 238
such notice may include the permanent parcel number in addition
to a complete legal description. 239
It is sufficient, having been made a proper party to the 241
foreclosure proceeding, for the certificate holder to allege in 242
such holder's complaint that the tax certificate has been duly 243
purchased by the certificate holder, that the certificate 244
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redemption price appearing to be due and unpaid is due and 245
unpaid, and that there is a lien against the property described
in the tax certificate, without setting forth in such holder's 246
complaint any other special matter relating to the foreclosure 248
proceeding. The prayer of the complaint shall be that the court 249
issue an order that the property be sold by the sheriff or, if 250
the action is in the municipal court, by the bailiff, in the
manner provided in section 5721.19 of the Revised Code, unless 251
the complaint includes an appraisal by an independent appraiser 252
acceptable to the court that the value of the certificate parcel 253
is less than the certificate purchase price. In that case, the 254
prayer of the complaint shall be that fee simple title to the
property be transferred to and vested in the certificate holder 255
free and clear of all subordinate liens. 256
In the foreclosure proceeding, the certificate holder may 258
join in one action any number of tax certificates relating to the 259
same owner, provided that all parties on each of the tax 260
certificates are identical as to name and priority of interest. 261
However, the decree for each tax certificate shall be rendered 262
separately and any proceeding may be severed, in the discretion
of the court, for the purpose of trial or appeal. The court 263
shall make such order for the payment of all costs related 264
directly or indirectly to the redemption of the tax certificate, 265
including, without limitation, attorney's fees of the holder's 266
attorney, as is considered proper. The tax certificate purchased 267
by the certificate holder is presumptive evidence in all courts
and in all proceedings, including, without limitation, at the 268
trial of the foreclosure action, of the amount and validity of 269
the taxes, assessments, charges, penalties by the court and added 270
to such principal amount, and interest appearing due and unpaid 271
and of their nonpayment.
(G) For THE purposes of this section: 273
(1) "Prior tax certificates" and "prior delinquent taxes, 275
assessments, penalties, interest, and charges" mean tax 276
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certificates and delinquent taxes, assessments, penalties, 277
interest, and charges, the liens with respect to which attached 278
to the certificate parcel prior to the attachment of the lien
with respect to the tax certificate that is the subject of the 279
foreclosure proceedings. 280
(2) "Prior liens" means liens that are prior in right to 282
the lien with respect to the tax certificate that is the subject 283
of the foreclosure proceedings. 284
Sec. 5721.38. (A) At any time prior to the commencement 294
of foreclosure proceedings under section 5721.37 of the Revised 295
Code by the submitting of the payment to the county treasurer by 296
the certificate holder under division (B) of that section, the 297
owner of record of the certificate parcel, or any other person 298
entitled to redeem that parcel, may redeem the parcel by paying 299
to the county treasurer an amount equal to the total of the 300
certificate redemption prices of all tax certificates respecting 301
that parcel plus the sum of taxes, assessments, penalties, 302
charges, and interest charged against the parcel that have become 303
due and payable since the date the last certificate was sold. 304
(B) At any time after the commencement of foreclosure 306
proceedings under section 5721.37 of the Revised Code by the 308
submitting of the payment to the county treasurer by the
certificate holder under division (B) of that section and prior 310
to the filing of the entry of confirmation of sale of a 311
certificate parcel under foreclosure proceedings filed by the
county prosecuting attorney or prior to the decree conveying 313
title to the certificate holder as provided for in division (F) 314
of section 5721.37 of the Revised Code, the owner of record of 315
the certificate parcel or any other person entitled to redeem 316
that parcel may redeem the parcel by paying to the county 317
treasurer the SUM OF THE FOLLOWING AMOUNTS: 318
(1) THE amount described in division (A) of this section 320
plus interest; 321
(2) INTEREST on the certificate purchase price for each 323
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tax certificate sold respecting the parcel at the rate of 325
eighteen per cent per year for the period beginning on the day on 326
which the payment was submitted by the certificate holder,
together with an AND ENDING ON THE DAY THE PARCEL IS REDEEMED 328
UNDER THIS DIVISION, EXCEPT THAT SUCH INTEREST SHALL NOT ACCRUE 329
FOR MORE THAN THREE YEARS AFTER THE DAY THE CERTIFICATE WAS 330
PURCHASED IF THE CERTIFICATE HOLDER DID NOT SUBMIT PAYMENT UNDER 331
DIVISION (B) OF SECTION 5721.37 OF THE REVISED CODE BEFORE THE 332
END OF THAT THREE-YEAR PERIOD;
(3) AN amount equal to the sum of the prosecuting 335
attorney's fee under division (C)(1) of section 5721.37 of the 336
Revised Code if the tax certificate was purchased under section 337
5721.32 of the Revised Code, and any;
(4) ANY other costs and fees of the proceeding allocable 339
to the certificate parcel as determined by the court. 340
(C)(1) During the period beginning on the date a tax 342
certificate is sold under section 5721.32 of the Revised Code and 343
ending one year from that date, the owner of record of the 346
certificate parcel, or any other person entitled to redeem that 347
parcel, may enter into a redemption payment plan with the county 348
treasurer. The plan shall require the owner or other person to 349
pay the certificate redemption price for the tax certificate in 350
installments, with the final installment due no later than one 351
year after the date the tax certificate is sold. 352
(2) During the period beginning on the date a tax 354
certificate is sold under section 5721.33 of the Revised Code and 355
ending on the date the decree is rendered on the foreclosure 357
proceeding under division (F) of section 5721.37 of the Revised 358
Code, the owner of record of the certificate parcel, or any other 359
person entitled to redeem that parcel, may enter into a 360
redemption payment plan with the certificate holder and all 361
secured parties of the certificate holder. The plan shall 362
require the owner or other person to pay the certificate 363
redemption price for the tax certificate, an administrative fee 364
10
not to exceed one hundred dollars per year, and the actual fees 365
and costs incurred, in installments, with the final installment
due no later than three years after the date the tax certificate 366
is sold. The certificate holder shall give written notice of the 367
plan to the applicable county treasurer within sixty days after 368
entering into the plan and written notice of default under the 369
plan within ninety days after the default. If such a plan is 370
entered into, the time period for filing a notice of intent to
foreclose under section 5721.37 of the Revised Code is extended 371
by the length of time the plan is in effect and not in default. 372
(D)(1) Immediately upon receipt of full payment under 375
division (A) or (B) of this section, the county treasurer shall 376
make an entry to that effect in the tax certificate register and 377
notify each certificate holder by certified mail, return receipt 378
requested, that the parcel has been redeemed and the lien 379
canceled and that the tax certificates may be redeemed. The 380
county treasurer shall deposit into the tax certificate 381
redemption fund created in the county treasury an amount equal to 382
the total of the certificate redemption prices, together with 383
interest on the certificate purchase price for each tax 384
certificate sold respecting the parcel at the rate of eighteen 385
per cent per year paid under division (B) of this section for the 386
period beginning when the payment was submitted by the
certificate holder under division (B) of section 5721.37 of the 387
Revised Code and ending when the parcel was redeemed. The county 388
treasurer shall administer the fund for the purpose of redeeming 389
tax certificates. Interest earned on the fund shall be credited 390
to the county general fund.
(2) If a redemption payment plan is entered into pursuant 392
to division (C)(1) of this section, the county treasurer 393
immediately shall notify each certificate holder by certified 394
mail, return receipt requested, of the terms of the plan. 395
Installment payments made pursuant to the plan shall be deposited 396
in the tax certificate redemption fund. Any overpayment of the 398
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installments shall be refunded to the person responsible for
causing the overpayment if the person applies for a refund under 399
this section. If the person responsible for causing the 400
overpayment fails to apply for a refund under this section within 401
five years from the date the plan is satisfied, an amount equal 402
to the overpayment shall be deposited into the general fund of 403
the county.
Upon satisfaction of the plan, the county treasurer shall 406
indicate in the tax certificate register that the plan has been 407
satisfied, and shall notify each certificate holder by certified 408
mail, return receipt requested, that the plan has been satisfied 409
and that tax certificates may be redeemed. 410
If a plan becomes void, the county treasurer immediately 413
shall notify each certificate holder by certified mail, return 414
receipt requested. If a certificate holder files a request for
foreclosure under section 5721.37 of the Revised Code, upon the 415
confirmation of sale resulting from the foreclosure, any money 416
paid under the plan prior to its becoming void shall be applied 417
to payment as prescribed under divisions (A), (B), and (C) of 419
section 5721.39 of the Revised Code. Any residue remaining after 420
such payment shall be disposed of under section 5721.20 of the 421
Revised Code. 422
(E) To redeem a tax certificate with respect to which 424
payment has been made in full under division (A), (B), or (C)(1) 426
of this section, the certificate holder shall present the tax 428
certificate to the county treasurer, who shall prepare the 429
redemption information. Upon presentation, the county auditor 430
shall draw a warrant on the tax certificate redemption fund in 431
the amount of the certificate redemption price. For a parcel 432
that was redeemed under division (B) of this section, the 433
certificate holder who paid the amounts under division (B) of 435
section 5721.37 of the Revised Code shall be reimbursed for those 437
amounts, together with interest at the rate of eighteen per cent 438
per year on the amount paid under division (B)(1) of that section 439
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for the period beginning when the payment was submitted by the 440
certificate holder under division (B) of that section and ending 442
when the parcel was redeemed. The treasurer shall mark all 443
copies of the tax certificate "redeemed" and return the 444
certificate to the certificate holder. The canceled certificate 445
shall serve as a receipt evidencing redemption of the tax 446
certificate. If a certificate holder fails to redeem a tax 447
certificate within five years after notice is served under 448
division (D) of this section that tax certificates may be
redeemed, an amount equal to the certificate redemption price 450
shall be deposited into the general fund of the county. 451
Sec. 5721.39. In its judgment of foreclosure rendered with 461
respect to actions filed pursuant to section 5721.37 of the
Revised Code, the court shall enter a finding with respect to the 463
certificate parcel of the amount of the sum of the certificate 464
redemption prices respecting all the tax certificates sold
against the parcel; interest on the certificate purchase prices 466
of those certificates at the rate of eighteen per cent per year
for the period beginning on the day on which the payment was 467
submitted by the certificate holder under division (B) of section 468
5721.37 of the Revised Code; any delinquent taxes, assessments, 471
penalties, interest, and charges on the parcel that are not 472
covered by a tax certificate; and fees and costs incurred in the
foreclosure proceeding instituted against the parcel, including, 473
without limitation, the fees and costs of the prosecuting 475
attorney represented by the fee paid under division (B)(3) of 476
section 5721.37 of the Revised Code or the fees and costs of the 478
private attorney representing the certificate holder, and charges 479
paid or incurred in procuring title searches and abstracting 480
services relative to the subject premises. The court may order
the certificate parcel to be sold, without appraisal, in the 482
manner provided for in division (F) of section 5721.37 of the 483
Revised Code and as set forth in the prayer of the complaint, for 484
not less than the amount of its finding, or, in the event that 485
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the court finds that the value of the certificate parcel is less 487
than the certificate purchase price, the court may, as prayed for 488
in the complaint, issue a decree transferring fee simple title
free and clear of all subordinate liens to the certificate 489
holder. A decree of the court transferring such fee simple title 490
to the certificate holder is forever a bar to all rights of 491
redemption with respect to the certificate parcel.
Each certificate parcel shall be advertised and sold by the 494
officer to whom the order of sale is directed in the manner
provided by law for the sale of real property on execution. The 495
advertisement for sale of certificate parcels shall be published 496
once a week for three consecutive weeks and shall include the 497
date on which a second sale will be conducted if no bid is 498
accepted at the first sale. Any number of parcels may be 499
included in one advertisement. 500
Whenever the officer charged to conduct the sale offers a 503
certificate parcel for sale and no bids are made equal to at 504
least the amount of the court's finding, the officer shall 505
adjourn the sale of the parcel to the second date that was
specified in the advertisement of sale. The second sale shall be 507
held at the same place and commence at the same time as set forth 508
in the advertisement of sale. The officer shall offer any parcel 509
not sold at the first sale. Upon the conclusion of any sale, or 510
if any parcel remains unsold after being offered at two sales, 511
the officer conducting the sale shall report the results to the 512
court.
Upon the confirmation of a sale, the proceeds of the sale 515
shall be applied as follows:
(A) The fees and costs incurred in the proceeding filed 517
against the parcel pursuant to section 5721.37 of the Revised 519
Code, not including the county prosecutor's costs covered by the 520
fee paid by the certificate holder under division (B)(3) of that 521
section, shall be paid first.
(B) Following the payment required by division (A) of this 524
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section, the certificate holder that requested the foreclosure 525
shall be paid the sum of the FOLLOWING AMOUNTS:
(1) THE SUM OF THE amount found due for the certificate 528
redemption prices of all the tax certificates sold against the
parcel; any 529
(2) ANY premium paid by the certificate holder at the time 531
of purchase; interest 533
(3) INTEREST on the certificate purchase prices of those 536
certificates at the rate of eighteen per cent per year beginning
on the day on which the payment was submitted by the certificate 537
holder under division (B) of section 5721.37 of the Revised Code 538
and ending on the day of the sale, EXCEPT THAT SUCH INTEREST 539
SHALL NOT ACCRUE FOR MORE THAN THREE YEARS AFTER THE DAY THE 540
CERTIFICATE WAS PURCHASED IF THE CERTIFICATE HOLDER DID NOT 541
SUBMIT THAT PAYMENT BEFORE THE END OF THAT THREE-YEAR PERIOD; and 542
the
(4) THE amounts paid by the certificate holder under 544
divisions (B)(2) and (3) of section 5721.37 of the Revised Code. 545
(C) Following the payment required by division (B) of this 548
section, any amount due for taxes, assessments, charges, 549
penalties, and interest not covered by the tax certificate 550
holder's payment under division (B)(2) of section 5721.37 of the 551
Revised Code shall be paid, including all taxes, assessments,
charges, penalties, and interest payable subsequent to the entry 552
of the finding and prior to the transfer of the deed of the 553
parcel to the purchaser following confirmation of sale. If the 554
proceeds available for distribution pursuant to this division are 555
insufficient to pay the entire amount of those taxes, 556
assessments, charges, penalties, and interest, the proceeds shall 557
be paid to each claimant in proportion to the amount of those 558
taxes, assessments, charges, penalties, and interest that each is 559
due, and those taxes, assessments, charges, penalties, and 560
interest are deemed satisfied. 561
Any residue of money from proceeds of the sale shall be 563
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disposed of as prescribed by section 5721.20 of the Revised Code. 565
Unless the parcel previously was redeemed pursuant to 567
section 5721.25 or 5721.38 of the Revised Code, upon the filing 569
of the entry of confirmation of sale, the title to the parcel is 570
incontestable in the purchaser and is free and clear of all liens 571
and encumbrances, except a federal tax lien notice of which is 572
properly filed in accordance with section 317.09 of the Revised 573
Code prior to the date that a foreclosure proceeding is 574
instituted pursuant to section 5721.37 of the Revised Code, which 575
lien was foreclosed in accordance with 28 U.S.C.A. 2410(c), and 576
the easements and covenants of record running with the land or 577
lots that were created prior to the time the taxes or 578
assessments, for the nonpayment of which a tax certificate was 579
issued and the parcel sold at foreclosure, became due and 580
payable.
The title shall not be invalid because of any irregularity, 583
informality, or omission of any proceedings under this chapter, 584
or in any processes of taxation, if such irregularity, 585
informality, or omission does not abrogate the provision for 586
notice to holders of title, lien, or mortgage to, or other 587
interests in, such foreclosed parcels, as prescribed in this 588
chapter.
Section 2. That existing sections 5721.37, 5721.38, and 590
5721.39 of the Revised Code are hereby repealed. 591