2024-08-14

Briana Bryant

New Ohio Law

Key insights about the new law taking effect October 24, 2024.

Our subject matter experts have once again led the charge in improving Ohio title law with the recent passage of Senate Bill 94. The new law introduces several key improvements to Ohio’s real estate transaction processes, including the adoption of the most favorable view of mortgage subrogation, enhancements to judgment lien law, and modernization of recording and access to real estate records. In short, Senate Bill 94 will streamline the process of completing real estate transactions in Ohio, and it will allow certain cases involving real estate to be resolved more efficiently. Details about these major changes and their implications for our valued clients in the real estate industry are outlined below.

1. Streamlined Lien Priority Disputes

Senate Bill 94 codifies the most favorable view of mortgage subrogation, providing a clear and consistent legal standard across Ohio. This uniform standard, based on extensive research and best practices from throughout the country, largely eliminates confusion and reduces litigation time frames.

Benefits: Provides a predictable legal environment, reducing costs and risks.

Judgment creditors are now required to include the last known address of the judgment debtor in judgment liens.
Judgment creditors are now required to include the last known address of the judgment debtor in judgment liens.
2. Improved Judgment Lien Process

The new law requires judgment creditors to include the last known address of the judgment debtor in judgment liens. This simple addition helps title agents and parties to real estate transactions accurately determine which liens actually affect a particular parcel of real property, facilitating smoother transactions.

Benefits:
• Title Companies and Agents: Easier identification of which judgment liens actually affect particular real property.
• Attorneys and Lenders: Reduced risk of errors in property transactions.

3. Electronic Recording by June 2026

By June 2026, all Ohio counties must provide mechanisms for electronic recording of real property instruments. The new law provides funding for counties that have not yet been able to offer this resource, and it provides for a “document preservation surcharge” of up to $5 per recorded instrument to cover the costs of future maintenance of those records, to help bring Ohio fully into the 21st century. This change will enable all counties to streamline the recording process and reduce the need for physical document handling.

Benefits:
• Developers, Owners, and Brokers: Faster and more efficient recording.
• County Officials: Streamlined operations and improved document management.

The new law streamlines the recording process and reduces the need for physical documents.
The new law streamlines the recording process and reduces the need for physical documents.
4. Enhanced Electronic Access to Records

Counties must also provide electronic access to property records and indexes dating back to at least January 1, 1980. This change means that most real estate records for most transactions will be accessible online, saving time and effort for all parties involved in property transactions.

Benefits:
• Property Managers and Legal Professionals: Convenient access to real property records.
• Real Estate Professionals: Reduced need for driving and walking to county offices (and parking).

5. Simplified Power of Attorney Processes

Senate Bill 94 introduces a cure mechanism for issues related to the timely recording of powers of attorney. If a power of attorney is executed and acknowledged on the same date as the authorized instrument, it is presumed valid, even if recorded later. This provision simplifies real estate transactions and ensures that valid documents are recognized, reducing delays and disputes.

Benefits:
• All Parties in Real Estate Transactions: Fewer delays, difficulties, and disputes over document validity.
• Legal Professionals: Clearer standards for power of attorney documentation for real estate transactions.

These improvements represent significant steps forward in modernizing Ohio’s real estate laws and processes, and we were happy to have played a key role in the process. Whether you are a developer, owner, broker, lender, or legal professional, these changes will facilitate smoother, more efficient real estate transactions. Omni Title remains committed to ensuring that our clients benefit from the most favorable and up-to-date commercial real estate legal standards.

Contact us for additional information about these changes and how they may affect your transactions and your business.