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(127th General Assembly)
(Substitute House Bill Number 138)
AN ACT
To amend sections 323.25, 323.28, 323.47, 2303.11,
2323.07,
2327.01, 2327.02, 2329.17, 2329.18,
2329.19, 2329.23,
2329.26, 2329.27, 2329.30,
2329.31, 2329.36, 2703.26, 5309.64,
5721.18,
5721.19, and 5723.01 and to enact sections
2323.06,
2329.191,
2329.271, 2329.272, and
2703.141 of the
Revised Code to require
purchasers
of real
property at a judicial sale
to provide
certain
identifying information, to
require purchasers to
pay the balance due on the
purchase price within
thirty days of the
confirmation of the sale, to
allow
municipal
corporations to conduct
inspections of
property
subject to a writ of
execution, to
require
judicial sales to be
confirmed within
thirty
days of sale, to require
officers who sell
real
property at a judicial
sale to file a deed
within fourteen days of
payment of the balance
due on the purchase price,
to authorize
courts
and county boards of revision
to transfer
certain tax delinquent lands subject
to judicial
foreclosure without appraisal or
sale, to permit
a
summary property description to
be read at a
judicial sale, to allow the courts to perform
mediation in an action for the foreclosure of a
mortgage, and to offer property
that did not
sell at a judicial sale to a
political
subdivision
before forfeiture to the
state.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1. That sections 323.25, 323.28, 323.47, 2303.11,
2323.07,
2327.01, 2327.02, 2329.17, 2329.18, 2329.19, 2329.23,
2329.26, 2329.27, 2329.30,
2329.31, 2329.36, 2703.26, 5309.64,
5721.18, 5721.19, and 5723.01 be
amended and sections 2323.06,
2329.191,
2329.271, 2329.272, and 2703.141 of the Revised Code be
enacted to
read as follows:
Sec. 323.25. When taxes charged against an entry on the
tax
duplicate, or any part of such those taxes, are not paid within
sixty days after delivery of the delinquent land duplicate to the
county treasurer as prescribed by section 5721.011 of the Revised
Code,
the county treasurer shall enforce the lien for such the
taxes by
civil action in the treasurer's official capacity as
treasurer, for the sale of such
premises in the same way mortgage
liens are enforced or for the transfer of such premises to an
electing subdivision pursuant to section 323.28 of the Revised
Code, in the court of common pleas of the county in the same
way
mortgage liens are enforced, in a municipal court with
jurisdiction, or in the county board of revision with jurisdiction
pursuant to section 323.66 of the Revised Code.
After the civil
action has been instituted, but before the filing of an entry of
confirmation of sale or transfer pursuant to the action, any
person entitled to redeem the land may do so by tendering to the
county treasurer an amount sufficient, as determined by the court
or board of revision, to pay the taxes, assessments, penalties,
interest, and charges then due and unpaid, and the costs incurred
in the civil action, and by demonstrating that the property is in
compliance with all applicable zoning regulations, land use
restrictions, and building, health, and safety codes.
If the delinquent land duplicate lists minerals or rights to
minerals
listed pursuant to sections 5713.04, 5713.05, and 5713.06
of the
Revised Code,
the county treasurer may enforce the lien for
taxes against such minerals or
rights to minerals by civil action,
in the treasurer's official capacity as
treasurer, in the manner
prescribed by this section, or proceed as provided
under section
5721.46 of the
Revised Code.
If service by publication is
necessary, such publication
shall be made once a week for three
consecutive weeks instead of
as provided by the Rules of Civil
Procedure, and the service shall
be complete at the expiration of
three weeks after the date of the
first publication. If the
prosecuting attorney determines that
service upon a defendant may
be obtained ultimately only by
publication, the prosecuting
attorney may cause service
to be made
simultaneously by certified mail, return receipt
requested,
ordinary
mail, and publication. The county treasurer
shall not
enforce the lien for taxes against real property to which any
of
the following applies:
(A) The real property is the
subject of an application for
exemption from taxation under
section 5715.27 of the Revised Code
and does not appear on
the delinquent land duplicate;
(B) The real property is the subject of a valid
delinquent
tax contract under
section 323.31 of the Revised Code for which
the county treasurer has not made
certification
to the county
auditor that the delinquent tax
contract
has become void in
accordance with
that section;
(C) A tax certificate respecting that property has been sold
under section 5721.32 or 5721.33 of the Revised Code; provided,
however, that
nothing in
this division shall prohibit the
county
treasurer or the county prosecuting attorney from enforcing the
lien of
the state and its political subdivisions for taxes against
a certificate
parcel with respect to any or all of such taxes that
at the time of
enforcement of such lien are not the subject of a
tax certificate.
Upon application of the plaintiff, the court shall advance
such cause on the docket, so that it may be first heard.
Sec. 323.28. (A) A finding shall be entered in a
proceeding
under section 323.25 of the Revised Code for taxes,
assessments,
penalties, interest, and charges due and payable at
the time the
deed of real property sold or transferred under this section is
transferred to the purchaser or transferee, plus the cost of the
proceeding.
For purposes of determining such amount, the county
treasurer may
estimate the amount of taxes, assessments, interest,
penalties, and costs that
will be payable at the time the deed of
the
property is transferred to the purchaser or transferee.
The court of common pleas, a municipal court with
jurisdiction, or the county board of revision with jurisdiction
pursuant to section 323.66 of the Revised Code shall order such
premises to be transferred pursuant to division (E) of this
section or shall order such premises to be
sold for payment of the
finding, but for not less than either of
the following, unless the
county treasurer applies for an
appraisal:
(1) The total amount of such finding;
(2) The fair market value of the premises, as determined
by
the county auditor, plus the cost of the proceeding.
If the county treasurer applies for an appraisal, the
premises shall be appraised in the manner provided by section
2329.17 of the Revised Code, and shall be sold for at least
two-thirds of the appraised value.
Notwithstanding the minimum sales price provisions of
divisions (A)(1) and (2)
of this section to the contrary, a parcel
sold pursuant to this section shall
not be sold for less than the
amount described in division (A)(1) of this
section if the highest
bidder is the owner of record of the parcel immediately
prior to
the judgment of foreclosure or a member of the following class of
parties connected to that owner: a member of that owner's
immediate family, a
person with a power of attorney appointed by
that owner who subsequently
transfers the parcel to the owner, a
sole proprietorship owned by that owner
or a member of his the
owner's immediate family, or partnership,
trust, business trust,
corporation, or association in which the owner or a member of his
the owner's immediate
family owns or controls directly or
indirectly more than fifty per cent. If a
parcel sells for less
than the amount described in division (A)(1) of this
section, the
officer conducting the sale shall require the buyer to complete
an
affidavit stating that the buyer is not the owner of record
immediately
prior to the judgment of foreclosure or a member of
the specified class of
parties connected to that owner, and the
affidavit shall become part of the
court records of the
proceeding. If the county auditor discovers within three
years
after the date of the sale that a parcel was sold to that owner or
a
member of the specified class of parties connected to that owner
for a price
less than the amount so described, and if the parcel
is still owned by that
owner or a member of the specified class of
parties connected to that owner,
the auditor within thirty days
after such discovery shall add the difference
between that amount
and the sale price to the amount of taxes that then stand
charged
against the parcel and is payable at the next succeeding date for
payment of real property taxes. As used in this paragraph,
"immediate family"
means a spouse who resides in the same
household and children.
(B) From the proceeds of the sale the costs shall be first
paid, next the amount found due for taxes, then the amount of any
taxes accruing after the entry of the finding and before the deed
of the property is transferred to the purchaser following the
sale, all of which taxes shall be deemed satisfied, though the
amount applicable to them is deficient, and any balance shall be
distributed according to section 5721.20 of the Revised Code. No
statute of limitations shall apply to such action. Upon sale,
all
liens for taxes due at the time the deed of the property is
transferred to the purchaser following the sale, and liens
subordinate to liens for taxes, shall be deemed satisfied and
discharged unless otherwise provided by the order of sale.
(C) If the county treasurer's estimate of the amount of
the
finding under division (A) of this section exceeds the amount
of
taxes, assessments, interest, penalties, and costs actually
payable
when the deed is transferred to the purchaser, the officer
who
conducted the sale shall refund to the purchaser the
difference
between the estimate and the amount actually payable.
If the
amount of taxes, assessments, interest, penalties, and
costs actually
payable when the deed is transferred to the
purchaser exceeds the
county treasurer's estimate, the officer
shall certify the amount
of the excess to the treasurer, who shall
enter that amount on
the real and public utility property tax
duplicate opposite the
property; the amount of the excess shall be
payable at the next
succeeding date prescribed for payment of
taxes in section 323.12
of the Revised Code.
(D) Premises ordered to be sold under this section but
remaining unsold for want of bidders after being offered for sale
on two separate occasions, not less than two weeks apart, shall
be
forfeited to the state or to a political subdivision pursuant to
section 5723.01 of the Revised Code and shall be disposed of
pursuant to Chapter
5723. of the Revised Code.
(E) Notwithstanding section 5722.03 of the Revised Code, if
the complaint alleges that the property is delinquent vacant land
as defined in section 5721.01 of the Revised Code, abandoned lands
as defined in section 323.65 of the Revised Code, or lands
described in division (E) of section 5722.01 of the Revised Code,
and the value of the taxes, assessments, penalties, interest, and
all other charges and costs of the action exceed the auditor's
fair market value of the parcel, then the court or board of
revision having jurisdiction over the matter on motion of the
plaintiff, or on the court's or board's own motion, shall, upon
any adjudication of foreclosure, order, without appraisal and
without sale, the fee simple title of the property to be
transferred to and vested in an electing subdivision as defined in
division (A) of section 5722.01 of the Revised Code. For purposes
of determining whether the taxes, assessments, penalties,
interest,
and all other charges and costs of the action exceed
the actual
fair market value of the parcel, the auditor's most
current
valuation shall be rebuttably presumed to be, and
constitute prima-facie evidence of, the fair market value of the
parcel. In such
case, the filing for journalization of a decree
of foreclosure
ordering that direct transfer without appraisal or
sale shall
constitute confirmation of the transfer and thereby
terminate any
further statutory or common law right of
redemption.
(F) Whenever the officer charged to conduct the sale offers
any parcel for sale, the officer first shall read aloud a complete
legal description of the parcel, or in the alternative, may read
aloud only a summary description and a parcel number if the county
has adopted a permanent parcel number system and if the
advertising notice published prior to the sale includes a complete
legal description or indicates where the complete legal
description may be obtained.
Sec. 323.47. (A) If land held by tenants in common is sold
upon
proceedings in partition, or taken by the election of any of
the
parties to such proceedings, or real estate is sold at
judicial
sale, or by administrators, executors, guardians, or
trustees, the
court shall order that the taxes, penalties, and
assessments then
due and payable, and interest thereon on those
taxes, penalties, and assessments, that are
or will be a lien
on
such land or real estate at the time the
deed is transferred
following the sale, be discharged out of the
proceeds of such sale
or election. For purposes of determining
such amount,
the county
treasurer may shall estimate the amount of
taxes,
assessments,
interest, and penalties that will be payable
at the
time the deed
of the property is transferred to the
purchaser. If
the county
treasurer's estimate exceeds the amount
of taxes,
assessments,
interest, and penalties actually payable
when the
deed is
transferred to the purchaser, the officer who
conducted
the sale
shall refund to the purchaser the difference
between the
estimate
and the amount actually payable. If the
amount of taxes,
assessments, interest, and penalties actually
payable when the
deed is transferred to the purchaser exceeds the
county
treasurer's estimate, the officer shall certify the amount
of the
excess to the treasurer, who shall enter that amount on
the real
and public utility property tax duplicate opposite the
property;
the amount of the excess shall be payable at the next
succeeding
date prescribed for payment of taxes in section 323.12
of the
Revised Code.
(B)(1) If real estate is sold at judicial sale, the court
shall
order that the total of the following amounts shall be
discharged out of the proceeds of the sale:
(a) Taxes and assessments the lien for which attaches before
the confirmation of sale but that are not yet determined,
assessed, and levied for the year in which confirmation occurs,
apportioned pro rata to the part of that year that precedes
confirmation, and any penalties and interest on those taxes and
assessments;
(b) All other taxes, assessments, penalties, and interest the
lien for which attached for a prior tax year but that have not
been paid on or before the date of confirmation.
(2) Upon the request of the officer who conducted the sale,
the county treasurer shall estimate the amount in division
(B)(1)(a) of this section. If the county treasurer's estimate
exceeds that amount, the officer who conducted the sale shall
refund to the purchaser the difference between the estimate and
the actual amount. If the actual amount
exceeds the county
treasurer's estimate, the officer shall certify the amount of the
excess to the treasurer, who shall enter that amount on the real
and public utility property tax duplicate opposite the property;
the amount of the excess shall be payable at the next succeeding
date prescribed for payment of taxes in section 323.12 of the
Revised Code.
Sec. 2303.11. All writs and orders for provisional remedies,
and process of
every kind, shall be issued by the clerk of the
court of common pleas, or directly by an order or local rule of a
court, or by a county board of revision with jurisdiction pursuant
to section 323.66 of the Revised Code; but
before they are issued
a praecipe shall be filed with the clerk demanding the
same.
Sec. 2323.06. In an action for the foreclosure of a mortgage,
the court may at any stage in the action require the mortgagor and
the mortgagee to participate in mediation as the court considers
appropriate and may include a stipulation that requires the
mortgagor and the mortgagee to appear at the mediation in person.
Sec. 2323.07. When a mortgage is foreclosed or a specific
lien enforced, a
sale of the property, or a transfer of property
pursuant to sections 323.28, 323.65 to 323.78, and 5721.19 of the
Revised Code, shall be ordered by the court having jurisdiction or
the county board of revision with jurisdiction pursuant to section
323.66 of the Revised Code.
When the real property to be sold is in one or more tracts,
the court may
order the officer who makes the sale to subdivide,
appraise, and sell them in
parcels, or sell any one of the tracts
as a whole.
When the mortgaged property is situated in more than one
county, the court may
order the sheriff or master of each county
to make sale of the property in
his the sheriff's or master's
county, or may direct one officer to sell the whole. When it
consists of a
single tract, the court
may direct that it be sold
as one tract or in separate parcels, and shall
direct whether
appraisers shall be selected for each county or one set for
all;
and whether publication of the sale shall be made in all the
counties, or
in one county only.
Sec. 2327.01. An execution is a process of a court, issued
by its clerk, the court itself, or the county board of revision
with jurisdiction pursuant to section 323.66 of the Revised Code,
and
directed to the sheriff of the county. Executions may be
issued to the
sheriffs of different counties at the same time.
Sec. 2327.02. (A) Executions are of three kinds:
(A)(1) Against the property of the judgment debtor, including
orders of sale or orders to transfer property pursuant to sections
323.28, 323.65 to 323.78, and 5721.19 of the Revised Code;
(B)(2) Against the person of the judgment debtor;
(C)(3) For the delivery of the possession of real property,
including real
property sold under orders of sale or transferred
under orders to transfer property pursuant to sections 323.28,
323.65 to 323.78, and 5721.19 of the Revised Code.
(B) The writ must shall contain a specific description of the
property, and a command to
the sheriff to deliver it to the person
entitled thereto to the property. It also may require
such the
sheriff to make the damages recovered for withholding the
possession and
costs, or costs alone, out of the property of the
person who so withholds it.
(C) In the case of foreclosures of real property, including
foreclosures for taxes, mortgages, judgment liens, and other valid
liens, the description of the property, the order of sale, order
to transfer, and any deed or deed forms may be prepared, adopted,
and otherwise approved in advance by the court having jurisdiction
or the county board of revision with jurisdiction pursuant to
section 323.66 of the Revised Code, directly commanding the
sheriff to sell, convey, or deliver possession of the property as
commanded in that order. In those cases, the clerk shall
journalize the order and deliver that writ or order to the sheriff
for execution. If the property is sold under an order of sale or
transferred under an order to transfer, the officer who conducted
the sale or made the transfer of the property shall collect the
recording fee and any associated costs to cover the recording from
the purchaser or transferee at the time of the sale or transfer
and, following confirmation of the sale or transfer and the
payment of the balance due on the purchase price of the property,
shall execute
and record the deed conveying title to the property
to the
purchaser or transferee. For purposes of recording that
deed, by
placement of a bid or making a statement of interest by
any party
ultimately awarded the property, the purchaser or
transferee
thereby appoints the officer who makes the sale or is
charged with
executing and delivering the deed as agent for that
purchaser or
transferee for the sole purpose of accepting
delivery of the deed.
Sec. 2329.17. (A) When execution is levied upon lands and
tenements, the officer
who makes the levy shall call an inquest of
three disinterested freeholders,
residents of the county where the
lands taken in execution are situated, and
administer to them an
oath impartially to appraise the property so levied
upon, upon
actual view. They forthwith shall return to such officer, under
their hands, an estimate of the real value of the property in
money.
(B) The municipal corporation or township in which the real
property is situated may inspect prior to the judicial sale any
structures located on lands
subject to a writ of execution.
Sec. 2329.18. When an officer receives the return provided
for in division (A) of section
2329.17 of the Revised Code, he the
officer forthwith shall
deposit a copy of it with the
clerk of the
court from which the writ issued, and immediately advertise and
sell such real estate in conformity with sections 2329.01 to
2329.61,
inclusive, of the Revised Code.
Sec. 2329.19. Upon the return of the estimate provided for
in division (A) of section 2329.17 of the Revised
Code, if it
appears by the inquisition that two thirds of the appraised value
of the lands and tenements levied upon is sufficient to satisfy
the execution,
with costs, the judgment on which the execution
issued shall not operate as a
lien on the residue of the debtor's
estate to the prejudice of any other
judgment creditor.
Sec. 2329.191. (A) As used in this section, "title insurance
company" has the same meaning as in section 3953.01 of the Revised
Code.
(B) In every action demanding the judicial sale of
residential real estate consisting of one to four single-family
units, the party seeking that judicial sale shall file with the
clerk of the court of common pleas within fourteen days after
filing the pleadings requesting relief a preliminary judicial
report on a form that is approved by the department of insurance
that is prepared and issued by a duly licensed title insurance
agent on behalf of a licensed title insurance company or by a
title insurance company that is authorized by the department of
insurance to transact business in this state. The preliminary
judicial report shall be effective within thirty days prior to the
filing of the complaint or other pleading requesting a judicial
sale and shall include at least all of the following:
(1) A legal description of each parcel of real estate to be
sold at the judicial sale;
(2) The street address of the real estate or, if there is no
street address, the name of the street or road upon which the real
estate fronts together with the names of the streets or roads
immediately to the north and south or east and west of the real
estate;
(3) The county treasurer's permanent parcel number or other
tax identification number of the real estate;
(4) The name of the owners of record of the real estate to be
sold;
(5) A reference to the volume and page or instrument number
of the recording by which the owners acquired title to the real
estate;
(6) A description of the record title to the real estate;
however, easements, restrictions, setback lines, declarations,
conditions, covenants, reservations, and rights-of-way that were
filed for record prior to the lien being foreclosed are not
required to be included;
(7) The name and address of each lienholder and the name and
address of each lienholder's attorney, if any, as shown on the
recorded lien of the
lienholder.
Prior to submitting any order or judgment entry to a court
that would order the sale of the residential real estate, the
party submitting the order or judgment entry shall file with the
clerk of the court of common pleas a final judicial report that
updates the state of the record title to that real estate from the
effective date of the preliminary judicial report through the date
of lis pendens and includes a copy of the court's docket for the
case. The cost of the title examination necessary for the
preparation of both the preliminary judicial report and the final
judicial report together with the premiums for those reports
computed as required by the department of insurance, based on the
fair market value of the real estate, or in the case of a
foreclosure, the principal balance of the mortgage or other lien
being foreclosed on or any other additional amount as may be
ordered by the court shall be taxed as costs in the case.
(C) In every action demanding the judicial sale of
residential real estate consisting of more than four single-family
units or of commercial real estate, the party seeking that
judicial sale shall file with the clerk of the court of common
pleas within fourteen days after filing the pleadings requesting
relief either a preliminary judicial report or a commitment for an
owner's fee policy of title insurance on the form approved by the
department of insurance that is prepared and issued by a duly
licensed title insurance agent on behalf of a licensed title
insurance company. Division (B) of this section applies if the
party seeking the judicial sale files a preliminary judicial
report. If the party seeking the judicial sale files a commitment
for an owner's fee policy of title insurance, the commitment shall
have an effective date
within fourteen days prior to the filing
of the complaint or other
pleading requesting a judicial sale and
shall contain at least all
of the information required in
divisions (B)(1) to (7) of this
section. The commitment shall
cover each parcel of real estate to
be sold, shall include the
amount of the successful bid at the
judicial sale, shall show the
purchaser at the judicial sale as
the proposed insured, and shall
not expire until thirty days after
the recordation of the deed by
the officer who makes the sale to
that purchaser. After the
officer's return of the order of sale
and prior to the
confirmation of the sale, the party requesting
the order of sale
shall cause an invoice for the cost of the title
insurance
policy, commitment cost related expenses, and
cancellation fees,
if any, to be filed with the clerk of the court
of common pleas.
The amount of the invoice shall be taxed as costs
in the case.
The purchaser at the judicial sale may, by paying the
premium for
the title insurance policy, obtain the issuance of
title
insurance in accordance with the commitment.
Sec. 2329.23. All notices and advertisements for the sale of
lands and
tenements located in a municipal corporation, made by
virtue of the
proceedings in a court of record therein, in
addition to a description of such the
lands and tenements, shall
contain the street number of the buildings erected
on the lands,
or the street number of the lots offered for sale. If no such
number exists, then the notice or advertisement must shall contain
the name of the
street or road upon which such the lands and
tenements are located, together with
the names of the streets or
roads immediately north and south or east and west
of such the
lands and tenements that cross or intersect the street or road
upon
which they are located. The notice or advertisement shall, if
applicable, include the web site address of the officer who makes
the sale that allows a person to obtain a complete legal
description of the lands and tenements.
Sec. 2329.26. (A) Lands and tenements taken in execution
shall not
be sold until both all of the following occur:
(1)(a) Except as otherwise provided
in division
(A)(1)(b)
of
this section, the judgment creditor who seeks the sale of the
lands and tenements or the judgment creditor's attorney does
both
of the following:
(i) Causes a written notice of the
date, time, and place of
the sale to be served in accordance
with divisions (A) and
(B) of
Civil
Rule 5 upon the judgment debtor
and upon each other party to
the action in which the judgment giving
rise to the execution was
rendered;
(ii) At least seven calendar days
prior to the date of the
sale, files with the
clerk of the court that rendered the judgment
giving rise to the
execution a copy of the written notice
described in division
(A)(1)(a)(i)
of this section with proof of
service endorsed on the copy in
the form described in division
(D)
of
Civil
Rule 5.
(b) Service of the written notice
described in division
(A)(1)(a)(i)
of this section is not required to be made upon any
party who is in default for failure to appear in the
action in
which the judgment giving rise to the execution was
rendered.
(2) The officer taking the lands and tenements
gives
public
notice of the date, time, and place of the
sale for
at least
thirty days three weeks before the day of sale by advertisement in
a
newspaper
published in and of general circulation in the county.
The court
ordering
the sale may designate in the order of sale
the newspaper
in which
this public notice
shall be published, and
this public
notice is subject to
division (A) of section 2329.27
of the
Revised
Code.
(3) The officer taking the lands and tenements shall collect
the purchaser's information required by section 2329.271 of the
Revised Code.
(B) A sale of lands and tenements
taken in execution may be
set aside in accordance
with division (B) of section
2329.27 of
the Revised
Code.
Sec. 2329.27. (A) When the
public notice required by
division (A)(2) of
section 2329.26 of the Revised Code is made in
a newspaper
published weekly, it is sufficient to insert it for
three
consecutive weeks. If both a daily and weekly edition
of the
paper are published and the circulation of the
daily in the
county
exceeds that of the weekly in the county, or if the lands and
tenements
taken in execution are situated in a city, both a daily
and weekly edition of
the paper
are published,
and the circulation
of the daily in that city exceeds
the circulation of the
weekly in
that city, it is sufficient to publish the
public notice in the
daily once a week for three consecutive weeks before the day of
sale, each insertion to be on the same day of the week. The
expense of that publication in a daily shall not exceed the
cost
of publishing it in a weekly.
(B)(1) Subject to divisions (B)(2) and (3) of this
section,
all sales of lands and tenements taken in execution that
are made
without compliance with the written notice requirements of
division (A)(1)(a) of section 2329.26 of the Revised Code and, the
public notice requirements of division (A)(2) of that section, the
purchaser information requirements of section 2329.271 of the
Revised Code, and
division (A) of this section shall be set aside,
on motion by any interested party, by
the court to which the
execution is returnable.
(2) Proof of service endorsed upon a
copy of the written
notice required by division
(A)(1)(a)
of section 2329.26 of the
Revised
Code shall be conclusive
evidence of the service of the
written notice in compliance with
the requirements of that
division, unless a party files a motion
to set aside the sale of
the lands and tenements pursuant to
division (B)(1) of this
section
and establishes by a preponderance of the evidence that
the
proof of service is fraudulent.
(3) If the court to which the execution is returnable
enters
its order confirming the sale of the lands and tenements,
the
order shall have both of the following effects:
(a) The order shall be deemed to
constitute a judicial
finding as follows:
(i) That the sale of the lands and tenements
complied with
the written notice requirements of division
(A)(1)(a)
of section
2329.26 of the
Revised
Code and the public notice
requirements of
division (A)(2)
of that section and division
(A) of this section,
or that
compliance of that nature did not occur but the failure to
give
a written notice to a party entitled to notice under division
(A)(1)(a)
of section 2329.26 of the
Revised
Code has not
prejudiced that
party;
(ii) That all parties entitled to notice
under division
(A)(1)(a)
of section 2329.26 of the
Revised
Code received adequate
notice
of the date, time, and place of the sale of the lands and
tenements;
(iii) That the purchaser has submitted the contact
information required by section 2329.271 of the Revised Code.
(b) The order bars the
filing of any further motions to set
aside the sale of the lands
and tenements.
Sec. 2329.271. (A)(1) Subject to division (A)(2) of this
section, the purchaser of lands and tenements
taken in execution
shall submit to the officer who makes the sale
the following
information:
(a) The name, address, and telephone number of the purchaser;
(b) If the lands and tenements taken in execution are
residential rental property and the residential rental property is
purchased by a trust, business trust, estate, partnership, limited
partnership, limited liability company, association, corporation,
or any other business entity, the name, address, and telephone
number of the following with the provision that the purchaser be
readily accessible through the identified contact person:
(i) A trustee, in the case of a trust or business trust;
(ii) The executor or administrator, in the case of an estate;
(iii) A general partner, in the case of a partnership or a
limited partnership;
(iv) A member, manager, or officer, in the case of a limited
liability company;
(v) An associate, in the case of an association;
(vi) An officer, in the case of a corporation;
(vii) A member, manager, or officer, in the case of any other
business entity.
(c) A statement indicating whether the purchaser will occupy
the lands and tenements.
(2) If the lands and tenements taken in execution are not
residential rental property and the purchaser of those lands and
tenements is a corporation, partnership, association, estate,
trust, or other business organization the only place of business
of which is in the county in which the real property is located,
the information required by divisions (A)(1)(a) and (c) of this
section shall
be the contact information for the office of an
employee of the
purchasing entity that is located in
that county
and that the
purchasing entity has designated to
receive notices
or inquiries
about the property. If the purchasing
entity has a
place of
business outside the county in which the
real property
is located
and the purchasing entity's principal
place of
business is
located in this state, the information
required by
divisions
(A)(1)(a) and (c) of this section shall be the contact
information for the
office of an employee of the purchasing
entity that is located in
this state and
that the purchasing
entity has designated to
receive notices or inquiries about the
property. If the
purchasing entity's principal place of business
is
not located in
this state, the information required by
divisions
(A)(1)(a) and (c) of this
section shall be the contact
information for a natural person who
is
employed by the
purchasing entity at the purchasing entity's
principal place of
business outside of this state and whom the
purchasing entity has
designated to receive notices or inquiries
about the property.
(B) The information required by division (A) of this section
shall be part of the sheriff's record of proceedings and shall be
part of the record of the court of common pleas. The information
is a public record and open to public inspection.
Sec. 2329.272. (A) The officer who will make the sale of
lands and tenements that are delinquent vacant tenements or
premises or abandoned
tenements or premises may hold an open
house of the delinquent vacant tenements or premises or
abandoned
tenements or premises to allow any person to view the delinquent
vacant
tenements or premises or abandoned tenements or premises
prior to the sale. The officer may include
a notice of the open
house in the public notice of the date, time,
and place of the
sale pursuant to section 2329.26 of the Revised
Code. The officer
is not required to give those persons who view
the delinquent
vacant tenements or premises or abandoned tenements or premises
any advice regarding
the tenements or premises.
(B) The officer who makes the sale of lands and tenements
shall deduct any costs associated with holding the open house from
the proceeds of the sale of the lands and tenements.
(C) The officer who holds the open house is not liable as
provided in Chapter 2744. of the Revised Code for injury, death,
or loss to person or property that occurs at the open house.
Sec. 2329.30. The court from which an execution or order of
sale issues, upon
notice and motion of the officer who makes the
sale, or of an interested
party, shall may punish as for contempt
any
purchaser of real property lands and tenements who fails
to
pay
within thirty days of the confirmation of the sale the
purchase
money therefor balance due on the purchase price of the
lands and
tenements by forfeiting the sale of the lands and
tenements and returning any deposit paid in connection with the
sale of the lands and tenements, by forfeiting any deposit paid in
connection with the sale of the lands and tenements, as
for
contempt, or in any other manner the court considers
appropriate.
Sec. 2329.31. (A) Upon the return of any writ of execution
for
the satisfaction
of
which lands and tenements have been sold,
on
careful examination of the
proceedings of the officer making
the
sale, if the court of common pleas finds
that the sale was
made,
in all respects, in conformity with sections 2329.01
to
2329.61,
inclusive, of the Revised Code, it shall, within thirty
days of
the return of the writ, direct the clerk of the
court of
common
pleas to make an entry on the journal that the court is
satisfied
of the legality of such sale, and that the officer
attorney who filed the writ of execution make to the
purchaser a
deed for the lands and tenements. Nothing in this
section
prevents the court of common pleas from staying the
confirmation
of the sale to permit a property owner time to redeem
the
property or for any other reason that it determines is
appropriate. In those instances, the sale shall be confirmed
within thirty days after the termination of any stay of
confirmation.
(B) The officer making the sale shall require the purchaser,
including a lienholder, to pay within thirty days of the
confirmation of the sale the balance due on the purchase price of
the lands and tenements.
Sec. 2329.36. An officer, including a master
commissioner
and a special
master, who sells real property, on
confirmation of
the sale, must (A) The attorney who files the writ of execution
shall, not later than seven days after the filing of the order of
confirmation of sale pursuant to section 2329.31 of the Revised
Code, make to the
purchaser a deed,
containing the names of the
parties to the judgment, the
names of
the owners of the property
sold, a reference to the volume and
page
of the recording of the
next preceding recorded instrument by
or through which
the owners
claim title, the date and amount of
the judgment, the substance
of
the execution or order on which the
property was sold, the
substance of the
officer's return thereon,
and the order of
confirmation and deliver the deed to the officer who sold the real
property. The deed shall be
executed,
acknowledged,
and recorded
as other deeds. The officer or the officer's legal representative
may review
and approve or reject the deed for form and substance.
(B) By placing a bid at a sale conducted pursuant to this
chapter, the purchaser appoints the officer who makes the sale as
agent of the purchaser for the sole purpose of accepting delivery
of the deed described in division (A) of this section.
(C) The officer who sells the real property shall record the
deed, or
for registered land file the documents required by
section 5309.64
of the Revised Code, with the county recorder
within fourteen business days
of the date the purchaser pays the
balance
due on the purchase price of the lands and tenements. The
officer
shall charge
the purchaser a fee to cover the actual
costs of
recording the
deed or filing the documents.
Sec. 2703.141. (A) If service by publication is necessary in
an action to foreclose a mortgage or to enforce a lien or other
encumbrance or charge on real property, the party seeking service
by publication shall cause the publication to be made once a week
for three consecutive weeks instead of as provided by Civil Rule
4.4.
(B) In any county that has
adopted a permanent parcel
system, the parcel may be described in
the notice described in
division (A) of this section by listing the complete street
address and the
parcel number, instead of
also with a complete
legal
description, or the parcel may be described in the notice
by listing the complete street address of the parcel and by
indicating that the complete legal description of the parcel may
be obtained from the county auditor.
Sec. 2703.26. When summons has been served or publication
made a complaint is filed, the action is
pending so as to charge a
third person with notice of its pendency. While
pending, no
interest can be acquired by third persons in the subject of the
action, as against the plaintiff's title.
Sec. 5309.64. (A) Whenever registered land is sold to
satisfy any judgment,
decree, or order of a court, or the title is
transferred or affected by a
decree or judgment of a court, the
purchaser, or the person in whose favor
such
decree was rendered,
on filing with the county recorder a certificate that the
terms of
sale have been complied with and a certified copy of the order of
sale
and return thereof and confirmation, or a certified copy of
the decree of the
court transferring or affecting the title, as
the case may be, is entitled to
have the property transferred to
him the purchaser or person in
whose favor the decree was rendered
and his the title registered accordingly and
a
new certificate of
title issued therefor.
(B) When registered land is sold by the sheriff under order
of a court, the sheriff shall file with the county recorder a
certificate that the terms of sale have been complied with and a
certified copy of the order of sale and return thereof and
confirmation. The purchaser is thereafter entitled to have the
property transferred to the purchaser and the title registered
accordingly and a new certificate of title issued therefor.
Sec. 5721.18. The county prosecuting attorney, upon the
delivery to the prosecuting attorney by the county auditor
of a
delinquent land or
delinquent vacant land tax certificate, or of a
master list of
delinquent or delinquent vacant tracts, shall
institute a
foreclosure proceeding under this section in the name
of the
county treasurer to foreclose the lien of the state, in any
court
with jurisdiction or in the county board of revision with
jurisdiction pursuant to section 323.66 of the Revised Code,
unless the taxes, assessments, charges,
penalties, and interest
are paid prior to the time a complaint is
filed, or unless a
foreclosure or foreclosure and forfeiture
action has been or will
be instituted under section 323.25 or
5721.14 of the Revised Code.
If the delinquent land or delinquent vacant land tax certificate
or the
master list of delinquent or delinquent vacant tracts lists
minerals or rights
to minerals listed pursuant to sections
5713.04, 5713.05, and 5713.06 of the
Revised Code,
the county
prosecuting attorney may institute a foreclosure proceeding in the
name of the county treasurer, in any court with jurisdiction, to
foreclose the
lien of the state against such minerals or rights to
minerals, unless the
taxes, assessments, charges, penalties, and
interest are paid prior to the
time
the complaint is filed, or
unless a foreclosure or foreclosure and forfeiture
action has been
or will be instituted under section 323.25 or 5721.14 of the
Revised Code.
The prosecuting attorney shall
prosecute the proceeding
to
final judgment and satisfaction. Within ten days after obtaining a
judgment, the prosecuting attorney shall notify the treasurer in
writing that
judgment has been rendered. If there is a copy of a
written delinquent tax contract attached to the
certificate or an
asterisk
next to an entry on the master list, or if a copy of a
delinquent tax
contract is received from the auditor
prior to the
commencement of the proceeding under this section, the
prosecuting
attorney shall not institute the proceeding under
this section,
unless the prosecuting attorney receives a
certification of the
treasurer
that the delinquent tax contract has become void.
(A) This division applies to all foreclosure proceedings
not
instituted and prosecuted under section 323.25 of the Revised
Code
or division (B) or (C) of this section. The foreclosure
proceedings shall be instituted and prosecuted in the same manner
as is provided by law for the foreclosure of mortgages on land,
except that, if service by publication is necessary, such
publication shall be made once a week for three consecutive weeks
instead of as provided by the Rules of Civil Procedure, and the
service shall be complete at the expiration of three weeks after
the date of the first publication. In any proceeding prosecuted
under this section, if the prosecuting attorney determines that
service upon a defendant may be obtained ultimately only by
publication, the prosecuting attorney may cause service to be
made
simultaneously by certified mail,
return receipt requested,
ordinary mail, and
publication.
In any county that has adopted a permanent parcel number
system, the parcel may be described in the notice by parcel
number
only, instead of also with a complete legal description,
if the
prosecuting attorney determines that the publication of
the
complete legal description is not necessary to provide
reasonable
notice of the foreclosure proceeding to the interested
parties. If
the complete legal description is not published, the
notice shall
indicate where the complete legal description may be
obtained.
It is sufficient, having been made a proper party to the
foreclosure proceeding, for the treasurer to allege in the
treasurer's
complaint that the certificate or master list has been
duly filed
by the auditor, that the amount of money appearing to
be due and
unpaid is due and unpaid, and that there is a lien
against the
property described in the certificate or master list,
without
setting forth in the complaint any other or special matter
relating to the foreclosure proceeding. The prayer of the
complaint shall be that the court or the county board of revision
with jurisdiction pursuant to section 323.66 of the Revised Code
issue an order that the
property be sold or conveyed by the
sheriff, or if the action is in the
municipal court by the
bailiff, in the manner provided in section
5721.19 of the Revised
Code.
In the foreclosure proceeding, the treasurer may join in
one
action any number of lots or lands, but the decree shall be
rendered separately, and any proceedings may be severed, in the
discretion of the court or board of revision, for the purpose of
trial or appeal, and
the court or board of revision shall make
such order for the payment of costs as is
considered proper. The
certificate or master list filed by the
auditor with the
prosecuting attorney is prima-facie evidence at
the trial of the
foreclosure action of the amount and validity of
the taxes,
assessments, charges, penalties, and interest
appearing due and
unpaid and of their nonpayment.
(B) Foreclosure proceedings constituting an action in rem
may
be commenced by the filing of a complaint after the end of
the
second year from the date on which the delinquency was first
certified by the auditor. Prior to filing such an action in rem,
the prosecuting attorney shall cause a title search to be
conducted for the purpose of identifying any lienholders or other
persons with interests in the property subject to foreclosure.
Following the title search, the action in rem shall be instituted
by filing in the office of the clerk of a court with jurisdiction
a complaint bearing a caption substantially in the form set forth
in division (A) of section 5721.181 of the Revised Code.
Any number of parcels may be joined in one action. Each
separate parcel included in a complaint shall be given a serial
number and shall be separately indexed and docketed by the clerk
of the court in a book kept by the clerk for such purpose. A
complaint shall contain the permanent parcel number of each
parcel
included in it, the full street address of the parcel when
available, a description of the parcel as set forth in the
certificate or master list, the name and address of the last
known
owner of the parcel if they appear on the general tax list,
the
name and address of each lienholder and other person with an
interest in the parcel identified in the title search relating to
the parcel that is required by this division, and the amount of
taxes, assessments, charges, penalties, and interest due and
unpaid with respect to the parcel. It is sufficient for the
treasurer to allege in the complaint that the
certificate or
master list has been duly filed by the auditor with respect to
each parcel listed, that the amount of money with respect to each
parcel appearing to be due and unpaid is due and unpaid, and that
there is a lien against each parcel, without setting forth any
other or special matters. The prayer of the complaint shall be
that the court issue an order that the land described in the
complaint be sold in the manner provided in section 5721.19 of
the
Revised Code.
(1) Within thirty days after the filing of a complaint,
the
clerk of the court in which the complaint was filed shall
cause a
notice of foreclosure substantially in the form of the
notice set
forth in division (B) of section 5721.181 of the
Revised Code to
be published once a week for three consecutive
weeks in a
newspaper of general circulation in the county. In
any county that
has adopted a permanent parcel number system, the
parcel may be
described in the notice by parcel number only,
instead of also
with a complete legal description, if the
prosecuting attorney
determines that the publication of the
complete legal description
is not necessary to provide reasonable
notice of the foreclosure
proceeding to the interested parties.
If the complete legal
description is not published, the notice
shall indicate where the
complete legal description may be
obtained.
After the third publication, the publisher shall file with
the clerk of the court an affidavit stating the fact of the
publication and including a copy of the notice of foreclosure as
published. Service of process for purposes of the action in rem
shall be considered as complete on the date of the last
publication.
Within thirty days after the filing of a complaint and
before
the final date of publication of the notice of
foreclosure, the
clerk of the court also shall cause a copy of a
notice
substantially in the form of the notice set forth in
division (C)
of section 5721.181 of the Revised Code to be mailed
by certified
mail, with postage prepaid, to each person named in
the complaint
as being the last known owner of a parcel included
in it, or as
being a lienholder or other person with an interest
in a parcel
included in it. The notice shall be sent to the
address of each
such person, as set forth in the complaint, and
the clerk shall
enter the fact of such mailing upon the
appearance docket. If the
name and address of the last known
owner of a parcel included in a
complaint is not set forth in it,
the auditor shall file an
affidavit with the clerk stating that
the name and address of the
last known owner does not appear on
the general tax list.
(2)(a) An answer may be filed in an action in rem under
this
division by any person owning or claiming any right, title,
or
interest in, or lien upon, any parcel described in the
complaint.
The answer shall contain the caption and number of
the action and
the serial number of the parcel concerned. The
answer shall set
forth the nature and amount of interest claimed
in the parcel and
any defense or objection to the foreclosure of
the lien of the
state for delinquent taxes, assessments, charges,
penalties, and
interest as shown in the complaint. The answer
shall be filed in
the office of the clerk of the court, and a
copy of the answer
shall be served on the prosecuting attorney,
not later than
twenty-eight days after the date of final
publication of the
notice of foreclosure. If an answer is not
filed within such time,
a default judgment may be taken as to any
parcel included in a
complaint as to which no answer has been
filed. A default judgment
is valid and effective with respect to
all persons owning or
claiming any right, title, or interest in,
or lien upon, any such
parcel, notwithstanding that one or more
of such persons are
minors, incompetents, absentees or
nonresidents of the state, or
convicts in confinement.
(b)(i) A receiver appointed pursuant to divisions (C)(2)
and
(3) of section 3767.41 of the Revised Code may file an answer
pursuant to division (B)(2)(a) of this section, but is not
required to do so as a condition of receiving proceeds in a
distribution under division (B)(1) of section 5721.17 of the
Revised Code.
(ii) When a receivership under section 3767.41 of the
Revised
Code is associated with a parcel, the notice of
foreclosure set
forth in division (B) of section 5721.181 of the
Revised Code and
the notice set forth in division (C) of that
section shall be
modified to reflect the provisions of division
(B)(2)(b)(i) of
this section.
(3) At the trial of an action in rem under this division,
the
certificate or master list filed by the auditor with the
prosecuting attorney shall be prima-facie evidence of the amount
and validity of the taxes, assessments, charges, penalties, and
interest appearing due and unpaid on the parcel to which the
certificate or master list relates and their nonpayment. If an
answer is properly filed, the court may, in its discretion, and
shall, at the request of the person filing the answer, grant a
severance of the proceedings as to any parcel described in such
answer for purposes of trial or appeal.
(C) In addition to the actions in rem authorized under
division (B) of this section and section 5721.14 of the Revised
Code, an action in rem may be commenced under this division. An
action commenced under this division shall conform to all of the
requirements of division (B) of this section except as follows:
(1) The prosecuting attorney shall not cause a title
search
to be conducted for the purpose of identifying any
lienholders or
other persons with interests in the property
subject to
foreclosure, except that the prosecuting attorney
shall cause a
title search
to be conducted to identify any receiver's lien.
(2) The names and addresses of lienholders and persons
with
an interest in the parcel shall not be contained in the
complaint,
and notice shall not be mailed to lienholders and
persons with an
interest as provided in division (B)(1) of this
section, except
that the name and address of a receiver under
section 3767.41 of
the Revised Code shall be contained in the
complaint and notice
shall be mailed to the receiver.
(3) With respect to the forms applicable to actions
commenced
under division (B) of this section and contained in
section
5721.181 of the Revised Code:
(a) The notice of foreclosure prescribed by division (B)
of
section 5721.181 of the Revised Code shall be revised to
exclude
any reference to the inclusion of the name and address of
each
lienholder and other person with an interest in the parcel
identified in a statutorily required title search relating to the
parcel, and to exclude any such names and addresses from the
published notice, except that the revised notice shall refer to
the inclusion of the name and address of a receiver under section
3767.41 of the Revised Code and the published notice shall
include
the receiver's name and address. The notice of
foreclosure also
shall include the following in boldface type:
"If pursuant to the action the parcel is sold, the sale
shall
not affect or extinguish any lien or encumbrance with
respect to
the parcel other than a receiver's lien and other than
the lien
for land taxes, assessments, charges, interest, and
penalties for
which the lien is foreclosed and in satisfaction of
which the
property is sold. All other liens and encumbrances
with respect to
the parcel shall survive the sale."
(b) The notice to the owner, lienholders, and other
persons
with an interest in a parcel shall be a notice only to
the owner
and to any receiver under section 3767.41 of the
Revised Code, and
the last two sentences of the notice shall be omitted.
(4) As used in this division, a "receiver's lien" means
the
lien of a receiver appointed pursuant to divisions (C)(2) and
(3)
of section 3767.41 of the Revised Code that is acquired
pursuant
to division (H)(2)(b) of that section for any
unreimbursed
expenses and other amounts paid in accordance with
division (F) of
that section by the receiver and for the fees of
the receiver
approved pursuant to division (H)(1) of that
section.
(D) If the prosecuting attorney determines that an action
in
rem under division (B) or (C) of this section is precluded by
law,
then foreclosure proceedings shall be filed pursuant to
division
(A) of this section, and the complaint in the action in
personam
shall set forth the grounds upon which the action in rem
is
precluded.
(E) The conveyance by the owner of any parcel against
which a
complaint has been filed pursuant to this section at any
time
after the date of publication of the parcel on the
delinquent tax
list but before the date of a judgment of
foreclosure pursuant to
section 5721.19 of the Revised Code shall
not nullify the right of
the county to proceed with the
foreclosure.
Sec. 5721.19. (A) In its judgment of foreclosure rendered
with respect to actions filed pursuant to section 5721.18 of the
Revised Code, the court or the county board of revision with
jurisdiction pursuant to section 323.66 of the Revised Code shall
enter a finding with respect to
each
parcel of the amount of the
taxes, assessments, charges,
penalties, and interest, and the
costs incurred in the
foreclosure
proceeding instituted against
it, which that are due and
unpaid. The
court or the county board
of revision shall order such premises to be transferred pursuant
to division (I) of this section or may order each parcel to be
sold, without
appraisal, for not
less than either of the
following:
(1) The fair market value of the parcel, as determined by
the
county auditor, plus the costs incurred in the foreclosure
proceeding;
(2) The total amount of the finding entered by the court, or
the county board of revision,
including all taxes, assessments,
charges, penalties, and
interest
payable subsequent to the
delivery to the county
prosecuting
attorney of the delinquent land
tax certificate or
master list of
delinquent tracts and prior to
the transfer of the
deed of the
parcel to the purchaser following
confirmation of
sale, plus the
costs incurred in the foreclosure
proceeding. For purposes of
determining such amount, the county
treasurer may estimate the
amount of taxes, assessments,
interest,
penalties, and costs that
will be payable at the time the deed
of
the property is
transferred to the purchaser.
Notwithstanding the minimum sales price provisions of
divisions (A)(1) and (2)
of this section to the contrary, a parcel
sold pursuant to this section shall
not be sold for less than the
amount described in division (A)(2) of this
section if the highest
bidder is the owner of record of the parcel immediately
prior to
the judgment of foreclosure or a member of the following class of
parties connected to that owner: a member of that owner's
immediate family, a
person with a power of attorney appointed by
that owner who subsequently
transfers the parcel to the owner, a
sole proprietorship owned by that owner
or
a member of that
owner's immediate family, or a partnership,
trust, business trust,
corporation, or association in which the owner or a member of
the
owner's immediate
family owns or controls directly or indirectly
more than fifty per cent. If a
parcel sells for less than the
amount described in division (A)(2) of this
section, the officer
conducting the sale shall require the buyer to complete
an
affidavit stating that the buyer is not the owner of record
immediately prior
to the judgment of foreclosure or a member of
the specified class of parties
connected to that owner, and the
affidavit shall become part of the court
records of the
proceeding. If the county auditor discovers within three years
after the date of the sale that a parcel was sold to that owner or
a member of
the specified class of parties connected to that owner
for a price less than
the amount so described, and if the parcel
is still owned by that owner or a
member of the specified class of
parties connected to that owner, the auditor
within thirty days
after such discovery shall add the difference between that
amount
and the sale price to the amount of taxes that then stand charged
against the parcel and is payable at the next succeeding date for
payment of
real property taxes. As used in this paragraph,
"immediate family" means a
spouse who resides in the same
household and children.
(B) Each parcel affected by the court's finding and order of
sale shall be
separately sold, unless the court orders any of such
parcels to
be
sold together.
Each parcel shall be advertised and sold by the officer to
whom the order of sale is directed in the manner provided by law
for the sale of real property on execution. The advertisement
for
sale of each parcel shall be published once a week for three
consecutive weeks and shall include the date on which a second
sale will be conducted if no bid is accepted at the first sale.
Any number of parcels may be included in one advertisement.
The notice of the advertisement shall be substantially in
the
form of the notice set forth in section 5721.191 of the
Revised
Code. In any county that has adopted a permanent parcel
number
system, the parcel may be described in the notice by
parcel number
only, instead of also with a complete legal
description, if the
prosecuting attorney determines that the
publication of the
complete legal description is not necessary to
provide reasonable
notice of the foreclosure sale to potential
bidders. If the
complete legal description is not published, the
notice shall
indicate where the complete legal description may be
obtained.
(C)(1) Whenever the officer charged to conduct the sale
offers any parcel for sale the officer first shall read aloud a
complete legal description of the parcel, or in the alternative,
may read aloud only a summary description, including the complete
street address of the parcel, if any, and a parcel number if
the
county has adopted a permanent parcel number system and if the
advertising notice prepared pursuant to this section includes a
complete legal description or indicates where the complete legal
description may be obtained. Whenever the officer charged to
conduct the sale
offers any parcel for sale and no bids are made
equal to the
lesser of the amounts described in divisions (A)(1)
and (2) of
this section, the officer shall adjourn the sale of the
parcel to
the
second date that was specified in the advertisement
of sale.
The
second date shall be not less than two weeks or more
than six
weeks from the day on which the parcel was first offered
for
sale.
The second sale shall be held at the same place and
commence at
the same time as set forth in the advertisement of
sale. The
officer shall offer any parcel not sold at the first
sale. Upon
the conclusion of any sale, or if any parcel remains
unsold after
being offered at two sales, the officer conducting
the sale shall
report the results to the court.
(2)(a) If a parcel remains unsold after being offered at
two
sales, or if a parcel sells at any sale but the amount of the
price is less than the costs incurred in the proceeding
instituted
against the parcel under section 5721.18 of the
Revised Code, then
the clerk of the court shall certify to the
county auditor the
amount of those costs that remains unpaid. At
the next semiannual
apportionment of real property taxes that
occurs following any
such certification, the auditor shall reduce
the real property
taxes that the auditor otherwise would
distribute to
each taxing
district. In making the reductions, the auditor
shall subtract
from the otherwise distributable real property
taxes to a taxing
district an amount that shall be determined by
multiplying the
certified costs by a fraction the numerator of
which shall be the
amount of the taxes, assessments, charges,
penalties, and interest
on the parcel owed to that taxing
district at the time the parcel
first was offered for sale
pursuant to this section, and the
denominator of which shall be
the total of the taxes, assessments,
charges, penalties, and
interest on the parcel owed to all the
taxing districts at that
time. The auditor promptly shall pay to
the clerk of the court
the amounts of the reductions.
(b) If reductions occur pursuant to division (C)(2)(a) of
this section, and if at a subsequent time a parcel is sold at a
foreclosure sale or a forfeiture sale pursuant to Chapter 5723.
of
the Revised Code, then, notwithstanding other provisions of
the
Revised Code, except section 5721.17 of the Revised Code,
governing the distribution of the proceeds of a foreclosure or
forfeiture sale, the proceeds first shall be distributed to
reimburse the taxing districts subjected to reductions in their
otherwise distributable real property taxes. The distributions
shall be based on the same proportions used for purposes of
division (C)(2)(a) of this section.
(3) The court, in its discretion, may order any parcel not
sold pursuant to the original order of sale to be advertised and
offered for sale at a subsequent foreclosure sale. For such
purpose, the court may direct the parcel to be appraised and fix
a
minimum price for which it may be sold.
(D) Except as otherwise provided in division (B)(1) of
section 5721.17 of the Revised Code, upon the confirmation of a
sale, the proceeds of the sale shall be applied as follows:
(1) The costs incurred in any proceeding filed against the
parcel pursuant to section 5721.18 of the Revised Code shall be
paid first.
(2) Following the payment required by division (D)(1) of
this
section, the part of the proceeds that is equal to five per
cent
of the taxes and assessments due shall be deposited in the
delinquent tax and assessment collection fund created pursuant to
section 321.261 of the Revised Code.
(3) Following the payment required by division (D)(2) of
this
section, the amount found due for taxes, assessments,
charges,
penalties, and interest shall be paid, including all
taxes,
assessments, charges, penalties, and interest payable
subsequent
to the delivery to the county prosecuting attorney of
the
delinquent land tax certificate or master list of delinquent
tracts and prior to the transfer of the deed of the parcel to the
purchaser following confirmation of sale. If the proceeds
available for distribution pursuant to division (D)(3) of this
section are
sufficient to pay the entire amount of
those taxes,
assessments, charges, penalties, and interest,
the
portion of the
proceeds
representing taxes, interest, and
penalties shall be paid
to each claimant in
proportion to the
amount of taxes levied by
the claimant in the preceding
tax year,
and the amount
representing assessments and other charges shall be
paid to each
claimant in the order in which they became due. If
the proceeds
are not sufficient to pay that entire amount, the
proportion of
the
proceeds
representing taxes, penalties, and
interest shall
be
paid to each claimant in
the same proportion
that
the amount of
taxes
levied by the claimant against the
parcel in the preceding
tax year
bears to the taxes levied by all
such claimants against
the parcel
in the preceding tax year, and
the proportion of the
proceeds
representing items of assessments
and other charges shall
be
credited to those items in the order in
which they became due.
(E) If the proceeds from the sale of a parcel are
insufficient to pay in full the amount of the taxes, assessments,
charges, penalties, and interest which are due and unpaid; the
costs incurred in the foreclosure proceeding instituted against
it
which are due and unpaid; and, if division (B)(1) of section
5721.17 of the Revised Code is applicable, any notes issued by a
receiver pursuant to division (F) of section 3767.41 of the
Revised Code and any receiver's lien as defined in division
(C)(4)
of section 5721.18 of the Revised Code, the court,
pursuant to
section 5721.192 of the Revised Code, may enter a
deficiency
judgment against the owner of record of the parcel for
the unpaid
amount. If that owner of record is a corporation, the
court may
enter the deficiency judgment against the stockholder
holding a
majority of that corporation's stock.
If after distribution of proceeds from the sale of the
parcel
under division (D) of this section the amount of proceeds
to be
applied to pay the taxes, assessments, charges, penalties,
interest, and costs is insufficient to pay them in full, and the
court does not enter a deficiency judgment against the owner of
record pursuant to this division, the taxes, assessments,
charges,
penalties, interest, and costs shall be deemed
satisfied.
(F)(1) Upon confirmation of a sale, a spouse of the party
charged with the delinquent taxes or assessments shall thereby be
barred of the right of dower in the property sold, though such
spouse was not a party to the action. No statute of limitations
shall apply to such action. When the land or lots stand charged
on
the tax duplicate as certified delinquent, it is not necessary
to
make the state a party to the foreclosure proceeding, but the
state shall be deemed a party to such action through and be
represented by the county treasurer.
(2) Except as otherwise provided in divisions (F)(3) and
(G)
of this section, unless such land or lots were previously
redeemed
pursuant to section 5721.25 of the Revised Code, upon
the filing
of the entry of confirmation of sale, the title to
such land or
lots shall be incontestable in the purchaser and
shall be free and
clear of all liens and encumbrances, except a
federal tax lien
notice of which is properly filed in accordance
with section
317.09 of the Revised Code prior to the date that a
foreclosure
proceeding is instituted pursuant to division (B) of
section
5721.18 of the Revised Code and the easements and
covenants of
record running with the land or lots that were
created prior to
the time the taxes or assessments, for the
nonpayment of which the
land or lots are sold at foreclosure,
became due and payable.
(3) When proceedings for foreclosure are instituted under
division (C) of section 5721.18 of the Revised Code, unless the
land or lots were previously redeemed pursuant to section 5721.25
of the Revised Code, upon the filing of the entry of confirmation
of sale, the title to such land or lots shall be incontestable in
the purchaser and shall be free of any receiver's lien as defined
in division (C)(4) of section 5721.18 of the Revised Code and,
except as otherwise provided in division (G) of this section, the
liens for land taxes, assessments, charges, interest, and
penalties for which the lien was foreclosed and in satisfaction
of
which the property was sold. All other liens and encumbrances
with
respect to the land or lots shall survive the sale.
(4) The title shall not be invalid because of any
irregularity, informality, or omission of any proceedings under
this chapter, or in any processes of taxation, if such
irregularity, informality, or omission does not abrogate the
provision for notice to holders of title, lien, or mortgage to,
or
other interests in, such foreclosed lands or lots, as
prescribed
in this chapter.
(G) If a parcel is sold under this section for the amount
described in division (A)(2) of this section, and the county
treasurer's estimate exceeds the amount of taxes, assessments,
interest, penalties, and costs actually payable when the deed is
transferred to the purchaser, the officer who conducted the sale
shall refund to the purchaser the difference between the estimate
and the amount actually payable. If the amount of taxes,
assessments, interest, penalties, and costs actually payable when
the
deed is transferred to the purchaser exceeds the county
treasurer's estimate, the officer shall certify the amount of the
excess to the treasurer, who shall enter that amount on the real
and public utility property tax duplicate opposite the property;
the amount of the excess shall be payable at the next succeeding
date prescribed for payment of taxes in section 323.12 of the
Revised Code.
(H) If a parcel is sold or transferred under this section or
sections 323.28 and 323.65 to 323.78 of the Revised Code, the
officer who
conducted the sale or made the transfer of the
property shall collect the recording fee and any associated costs
to cover the recording from the
purchaser or transferee at the
time of the sale or transfer and, following confirmation of
the
sale or transfer, shall prepare execute and
record the deed
conveying title to the
parcel to the purchaser or transferee. For
purposes of recording such deed, by placement of a bid or making a
statement of interest by any party ultimately awarded the parcel,
that purchaser or transferee thereby appoints the officer who
makes the sale or is charged with executing and delivering the
deed as agent for the purchaser or transferee for the sole purpose
of accepting delivery of the deed. For such purposes, the
confirmation of any such sale or order to transfer the parcel
without appraisal or sale shall be deemed delivered upon the
confirmation of such sale or transfer.
(I) Notwithstanding section 5722.03 of the Revised Code, if
the complaint alleges that the property is delinquent vacant land
as defined in section 5721.01 of the Revised Code, abandoned lands
as defined in section 323.65 of the Revised Code, or lands
described in division (E) of section 5722.01 of the Revised Code,
and the value of the taxes, assessments, penalties, interest, and
all other charges and costs of the action exceed the auditor's
fair market value of the parcel, then the court or board of
revision having jurisdiction over the matter on motion of the
plaintiff, or on the court's or board's own motion, shall, upon
any adjudication of foreclosure, order, without appraisal and
without sale, the fee simple title of the property to be
transferred to and vested in an electing subdivision as defined in
division (A) of section 5722.01 of the Revised Code. For purposes
of determining whether the taxes, assessments, penalties,
interest,
and all other charges and costs of the action exceed
the actual
fair market value of the parcel, the auditor's most
current
valuation shall be rebuttably presumed to be, and
constitute prima-facie evidence of, the fair market value of the
parcel. In such
case, the filing for journalization of a decree
of foreclosure
ordering that direct transfer without appraisal or
sale shall
constitute confirmation of the transfer and thereby
terminate any
further statutory or common law right of
redemption.
Sec. 5723.01. (A)(1) Every tract of land and town lot,
which, pursuant to foreclosure proceedings under section 323.25
or
5721.18 of the Revised Code, has been advertised and offered
for
sale on two separate occasions, not less than two weeks
apart, and
not sold for want of bidders, shall be forfeited to
the state or
to a political subdivision pursuant to division (A)(3) of this
section.
(2) The county prosecuting attorney shall certify to the
court that such tract of land or town lot has been twice offered
for sale and not sold for want of a bidder. Such forfeiture of
lands and town lots shall be effective when the court by entry
orders such lands and town lots forfeited to the state or to a
political subdivision pursuant to division (A)(3) of this section.
A copy
of such entry shall be certified to the county auditor and,
after
the date of the certification, all the right, title, claim,
and
interest of the former owner is transferred to and vested in
the
state to be disposed of in compliance with this chapter.
(3) After having been notified pursuant to division (A)(2) of
this section that the tract of land or town lot has been twice
offered for sale and not sold for want of bidders, the court shall
notify the political subdivision in which the property is located
and offer to forfeit the property to the political subdivision, or
to an electing subdivision as defined in section 5722.01 of the
Revised Code, upon a petition from the political subdivision. If
the political subdivision does not petition the court within ten
days of the notification by the court, the court shall forfeit the
property to the state. If the political subdivision requests
through a petition to receive the property through forfeiture, the
forfeiture of land and town lots is effective when, by entry, the
court orders such lands and town lots forfeited to the political
subdivision. The court shall certify a copy of the entry to the
county auditor and, after the date of certification, all the
right, title, claim, and interest of the former owner is
transferred to and vested in the political subdivision.
(B) Every parcel against which a judgment of foreclosure
and
forfeiture is made in accordance with section 5721.16 of the
Revised Code is forfeited to the state on the date the court
enters a finding under that section. After that date, all the
right, title, claim, and interest of the former owner is
transferred to the state to be disposed of in compliance with the
relevant provisions of this chapter.
SECTION 2. That existing sections 323.25, 323.28, 323.47,
2303.11,
2323.07, 2327.01, 2327.02, 2329.17, 2329.18, 2329.19,
2329.23, 2329.26,
2329.27, 2329.30, 2329.31, 2329.36, 2703.26,
5309.64, 5721.18, 5721.19, and 5723.01
of the Revised Code are
hereby repealed.
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