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H. B. No. 138 As IntroducedAs Introduced
127th General Assembly | Regular Session | 2007-2008 |
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Representatives Foley, Blessing
Cosponsors:
Representatives Domenick, Skindell, Hagan, R., McGregor, J., Ujvagi, Budish, Lundy, Stebelton, Raussen, Yuko, DeGeeter, Collier, Combs, Letson, Luckie, Harwood, Strahorn, Stewart, D., Driehaus, White, Garrison, Miller, Bolon, Brady, Boyd, Seitz
A BILL
To amend sections 323.25, 323.28, 2303.11, 2323.07, 2327.01, 2327.02, 2329.17, 2329.18, 2329.19, 2329.26, 2329.27, 2329.31, 2329.36, 5309.64, 5721.18, 5721.19, and 5723.01 and to enact section 2329.271 of the Revised Code to require purchasers of real property at a judicial sale to provide certain identifying information, 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 confirmation, 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, 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, 2303.11, 2323.07, 2327.01, 2327.02, 2329.17, 2329.18, 2329.19, 2329.26, 2329.27, 2329.31, 2329.36, 5309.64, 5721.18, 5721.19, and 5723.01 be amended and section 2329.271 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 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 taxes by
civil action in the treasurer's official capacity as
treasurer, for the sale of such
premises or 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 a municipal court with jurisdiction, or in the county board of revision pursuant to section 323.66 of the Revised Code in the same
way mortgage liens are enforced.
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, 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. The court of common pleas, a municipal court with jurisdiction, or the county board of revision 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 and 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 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 thereof. In such case, the filing for journalization of a decree of foreclosure ordering such direct transfer without appraisal or sale shall constitute confirmation of such 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, 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. 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 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. 2323.07. 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 or county board of revision having jurisdiction. 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, or the court itself, or the county board of revision having jurisdiction, 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. Executions are of three kinds: (A) 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) Against the person of the judgment debtor; (C) For the delivery of the possession of real property, including real
property sold under 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. The writ must contain a specific description of the property, and a command to
the sheriff to deliver it to the person entitled thereto. It also may require
such 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.
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 or county board of revision having jurisdiction, directly commanding the sheriff to sell, convey, or deliver possession of said property as commanded in such order. In such cases, the clerk shall journalize the order and deliver such writ or order to the sheriff for execution.
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 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. 2329.26. (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 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) The purchaser of lands and tenements taken in execution shall submit to the officer who makes the sale the following information:
(a) The name of the purchaser;
(b) The address of the purchaser which shall not be a post office box but shall be the primary residence of the purchaser, purchasing entity, or designated agent;
(c) The telephone number of the purchaser;
(d) A statement indicating whether the purchaser will occupy the lands and tenements.
(2) If the purchaser of lands and tenements taken in execution is a corporation, partnership, association, estate, trust, or other business organization, the information required by division (A)(1) of this section shall be the contact information for a person with an ownership interest in the real property who resides in the county where the land is located. If no person with an ownership interest resides in the county, the purchasing entity shall comply with division (A)(1) of this section by providing the information for a person who resides in the county that the entity has designated to be responsible for 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. 2329.31. 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 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 such instances, the sale shall be confirmed within thirty days after the termination of any stay of confirmation.
Sec. 2329.36. (A) An officer, including a master commissioner and a special
master, who sells real property, on confirmation of the sale, must 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. The deed shall be
executed, acknowledged,
and recorded as other deeds.
(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 and makes the deed under division (A) of this section 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 days of the date the officer makes the deed. The officer shall charge the purchaser a fee to cover the actual costs of recording the deed or filing the documents.
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) Where 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 or county board of revision
with jurisdiction, 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 county board of revision with jurisdiction 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, for the purpose of trial or appeal, and
the court 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 county board of revision with jurisdiction 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 are due and
unpaid. The
court or the county board of revision pursuant to section 323.66 of the Revised Code 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 county board of revision having jurisdiction,
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 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, 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 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, or in the case of non-tax public or private foreclosures under Chapters 2327. and 2329. of the Revised Code, the officer who
conducted the sale or ordered the transfer of the property shall collect the recording fee from the
purchaser or transferee at the
time of the sale 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, such transferee thereby appoints the officer who makes the sale or is charged with executing and delivering the deed as agent for such 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 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 thereof. In such case, the filing for journalization of a decree of foreclosure ordering such direct transfer without appraisal or sale shall constitute confirmation of such 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 bidder, 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 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, 2303.11, 2323.07, 2327.01, 2327.02, 2329.17, 2329.18, 2329.19, 2329.26, 2329.27, 2329.31, 2329.36, 5309.64, 5721.18, 5721.19, and 5723.01 of the Revised Code are hereby repealed.
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