Ohio

Ohio at a Glance

1. Mechanics' Lien Rules

Plain English

Ohio liens start with a notice of commencement (NOC) that the owner records before work starts. Subcontractors and suppliers who don't contract directly with the owner must then serve a notice of furnishing within 21 days of first work to keep full lien rights. To claim a lien, a contractor records an affidavit for mechanic's lien within 60 days (homes and residential condo units), 75 days (most other projects), or 120 days (oil and gas wells) after its last work. Liens for work before the NOC date from the first visible work on the job; liens for work after the NOC date from the NOC's recording. A qualifying construction mortgage recorded first has priority for proceeds properly paid out. Liens last 6 years unless suit is filed, and an owner can force suit with a 60-day notice.

Key Rules

Notice of commencement (R.C. 1311.04). Recorded by the owner before work starts, in affidavit form, listing the property, the improvement, the owner and any designee, the original contractors, lenders and sureties. It expires 4 years after recording unless it states another date. The owner or designee must keep a copy posted on the property during construction (not required for a home purchase contract).

Notice of furnishing (R.C. 1311.05). Subcontractors and suppliers not in privity with the owner serve the owner's designee and the original contractor within 21 days after first furnishing. A late notice preserves lien rights only for work and materials furnished within the 21 days before it is served and after.

Affidavit deadline (R.C. 1311.06(B)). 60 days for a one- or two-family dwelling or a residential condo unit; 120 days for oil and gas well liens under § 1311.021; 75 days for everything else. Serve a copy on the owner or designee within 30 days after filing; if service can't be made, post it on the property within 10 days after that (§ 1311.07).

Effective date (R.C. 1311.13(A)). Liens for work before the NOC: as of the first visible work or materials by anyone on the improvement. Liens for work after the NOC: as of the NOC recording date.

Construction mortgages (R.C. 1311.14). An improvement mortgage with the lender's name and address and the statutory covenant has priority over liens filed after it, to the extent proceeds are used for the improvement or to pay prior encumbrances under the statute's disbursement rules.

Duration and suit (R.C. 1311.13(C), 1311.11(B)). Liens last 6 years after filing unless suit is brought. After service of a notice to commence suit, the lienholder has 60 days to sue or the lien is void.

Bond (R.C. 1311.11(C)). Security of double the claim, or 1.5 times the claim if it exceeds $5,000, approved by the court of common pleas.

Practice Points

1. Find the NOC. Its recording date can set the effective date of every later lien. Note whether the construction mortgage recorded before it.
2. Count the right number of days: 60 for homes and condo units, 75 for commercial. Get affidavits and waivers for work within the window.
3. Construction loans: confirm the mortgage has the § 1311.14 covenant and the lender follows the statutory disbursement order. Follow the insurer's Ohio underwriting requirements before giving mechanics' lien coverage.
4. Older liens: a lien more than 6 years old with no suit is expired. A 60-day notice can clear a newer one.

Citations

• R.C. 1311.05 (notice of furnishing; 21 days): https://codes.ohio.gov/ohio-revised-code/section-1311.05
• R.C. 1311.06 (affidavit; 60/75/120 days): https://codes.ohio.gov/ohio-revised-code/section-1311.06
• R.C. 1311.11 (notice to commence suit; bond): https://codes.ohio.gov/ohio-revised-code/section-1311.11
• R.C. 1311.13 (effective dates; 6-year duration): https://codes.ohio.gov/ohio-revised-code/section-1311.13
• R.C. 1311.14 (construction mortgage priority): https://codes.ohio.gov/ohio-revised-code/section-1311.14

2. Execution and Notarization Requirements for Recording

Plain English

Ohio deeds are signed and acknowledged before a notary and recorded with the county recorder, after the county auditor transfers them on the tax list. Ohio treats deeds and mortgages differently: an unrecorded deed is void against a later buyer who had no knowledge of it, while a mortgage takes effect only when delivered for recording, so the first mortgage recorded wins. Ohio still has dower: unless a married grantor's spouse signs to release it, the spouse can keep a dower interest. Ohio allows online notarization. Ohio has a conveyance fee instead of a transfer tax: a state-required part plus a county option of up to $3 per $1,000.

Key Rules

• Deeds (R.C. 5301.25(A)). Until recorded, a deed is fraudulent as to a later bona fide purchaser with no knowledge of it.
• Mortgages (R.C. 5301.23(A)). Effective when delivered to the recorder; between two mortgages, the first recorded has preference.
• Dower (R.C. 2103.02). A spouse who hasn't released or been barred from dower has a life estate in one-third of real property the other spouse owned during the marriage. Dower ends on divorce.
• Online notarization (R.C. 147.60-147.66). Online notaries authorized by the Secretary of State may notarize by live two-way audio-video.
• Conveyance fee (R.C. 319.54; 322.02). County permissive real property transfer tax of up to 30 cents per $100 (§ 322.02) plus the mandatory auditor fee of 10 cents per $100 (minimum $1) under § 319.54(G)(3), for a maximum of $4 per $1,000.
• Good funds (R.C. 1349.21). Escrow and closing agents may disburse only from collected funds, with a limited exception for checks and similar items totaling no more than $10,000.

Practice Points

1. Married grantor? Get the spouse's dower release. An unreleased dower interest is a real Ohio title defect.
2. Two mortgages recorded the same day take priority in the order presented (R.C. 5301.23).
3. Auditor's transfer stamp first, then recording. Plan the timing.
4. Online notarizations: confirm the notary's Secretary of State online authorization.

Citations

• R.C. 5301.25 (deeds; recording act): https://codes.ohio.gov/ohio-revised-code/section-5301.25
• R.C. 5301.23 (mortgages effective when delivered for record): https://codes.ohio.gov/ohio-revised-code/section-5301.23
• R.C. 2103.02 (dower): https://codes.ohio.gov/ohio-revised-code/section-2103.02
• R.C. 147.60 (online notarization definitions): https://codes.ohio.gov/ohio-revised-code/section-147.60
• R.C. 322.02 (county real property transfer tax): https://codes.ohio.gov/ohio-revised-code/section-322.02
• R.C. 1349.21 (good funds): https://codes.ohio.gov/ohio-revised-code/section-1349.21

3. Securing Future Advances

Plain English

Ohio's open-end mortgage statute protects future advances. The mortgage must say "OPEN-END MORTGAGE" at the beginning, state that it secures future advances, and state the maximum amount that may be outstanding. Then all advances up to that maximum have priority from recording, whenever they're made. As in Pennsylvania, optional advances made after the lender receives written notice of a junior lien, or of construction work, are subordinate to that lien. The borrower can cap the loan by recording a notice. Construction loans can also use the separate § 1311.14 priority (section 1).

Key Rules

• Requirements (R.C. 5301.232(A)). States the intent to secure future advances, the maximum unpaid principal, and the words "OPEN-END MORTGAGE" at the beginning.
• Priority (5301.232(B)). Lien from recording for all advances up to the maximum. Optional advances after written notice of a subordinate lien, or of construction work, are subordinate to that lien (or valid mechanic's lien).
• Borrower's cap (5301.232(C)). The mortgagor may record a notice limiting the secured debt to the amount then outstanding. The notice must be executed like a deed, identify the mortgage's recording information, and be served on the mortgage holder before it is recorded. It doesn't cut off interest, obligatory advances, or advances to complete financed construction.

Practice Points

1. Check page one for "OPEN-END MORTGAGE" and the maximum amount.
2. HELOC payoffs: get a signed freeze and close request with the payoff, and track the release.
3. Junior lienholders: send written notice to the open-end lender to cut off later optional advances.

Citations

• R.C. 5301.232 (open-end mortgages): https://codes.ohio.gov/ohio-revised-code/section-5301.232

4. Subdivision Statutes and Regulations

Plain English

Ohio defines a subdivision as dividing a parcel into two or more parcels, any of which is less than 5 acres, for transfer of ownership, or improving land with new streets or common areas. Common exemptions: divisions into parcels of more than 5 acres with no new streets or access easements, and sales between adjoining owners that don't create new building sites. Small lot splits along existing roads can be approved as minor subdivisions without a plat. Selling lots from a plat before it is recorded carries a forfeiture of $10 to $500 per lot, and a metes-and-bounds description doesn't avoid it.

Key Rules

• Definition (R.C. 711.001(B)). Includes divisions into 2+ parcels, any under 5 acres, for transfer of ownership, and improvements involving new streets or common areas. Exemptions: parcels over 5 acres with no new streets or access easements; adjoining-owner sales or exchanges that don't create building sites; and certain parcels of 4 acres or more if the planning authority adopts that rule.
• Minor subdivisions (R.C. 711.131). Approval without a plat for a division along an existing public street, with no new streets, of no more than 5 lots after the original tract has been completely subdivided. The planning authority acts within 7 business days and stamps the deed "approved; no plat required."
• Penalty (R.C. 711.13). Willfully transferring lots from a subdivision plat before recording: forfeiture of $10 to $500 per lot. Metes-and-bounds descriptions don't exempt the seller.

Practice Points

1. Lot split under 5 acres? Look for planning approval (minor subdivision stamp or recorded plat).
2. Check the auditor's conveyance standards. Many counties require a new survey and description for splits.
3. "Free and clear" doesn't automatically clear restrictions. In Hitchcock v. Delta Trust, 2026-Ohio-600 (11th Dist.), a foreclosure sale confirmed "free and clear of all liens and encumbrances" did not by itself wipe out recorded restrictive covenants; the court sent the case back on whether the covenants bound the lot. Keep covenant exceptions on foreclosure deals.

Citations

• R.C. 711.001 (definitions): https://codes.ohio.gov/ohio-revised-code/section-711.001
• R.C. 711.13 (penalty for transfers before recording): https://codes.ohio.gov/ohio-revised-code/section-711.13
• R.C. 711.131 (minor subdivisions): https://codes.ohio.gov/ohio-revised-code/section-711.131

5. Title Premium Rates

Plain English

Ohio title premiums are filed with the Superintendent of Insurance under the general rate law, which expressly covers title insurers (R.C. 3935.02). A filing waits 30 days before taking effect and complies unless disapproved in that time (R.C. 3935.04). Policy forms must be filed 30 days before use and are deemed approved unless disapproved. Ohio regulates closings through title agent licensing and the Good Funds Law. A title insurer or agent must offer closing or settlement protection to the lender, borrower, seller and any applicant when the order is placed (R.C. 3953.32).

Key Rules

• Forms (R.C. 3953.28). Title policy forms must be filed with the Superintendent and can't be used until 30 days after filing unless approved earlier. A rating organization may file for its members.
• Rates (R.C. 3935.02-.04). Filed by insurers or a licensed rating bureau; 30-day waiting period; not excessive, inadequate or unfairly discriminatory (R.C. 3935.03).
• Closing protection (R.C. 3953.32). Must be offered on every order.
• Good funds (R.C. 1349.21). Disbursement only from collected or qualifying funds.
• Title agents. Licensed by the Department of Insurance; each insurer certifies its agents annually, and lenders, brokers, real estate and escrow companies may not act as title agents (R.C. 3953.21).

Practice Points

2. Good funds: confirm wired or collected funds before disbursing.
3. No rebates or inducements to applicants or their agents, attorneys or representatives (R.C. 3953.26).

Citations

• R.C. 3953.28 (filing title policy forms): https://codes.ohio.gov/ohio-revised-code/section-3953.28
• R.C. 3935.04 (rate filings; 30-day waiting period): https://codes.ohio.gov/ohio-revised-code/section-3935.04
• R.C. 3953.26 (inducements): https://codes.ohio.gov/ohio-revised-code/section-3953.26
• R.C. 3953.32 (closing protection): https://codes.ohio.gov/ohio-revised-code/section-3953.32

6. Recording Taxes & Fees on Deeds and Mortgages

Plain English

Ohio charges a real property conveyance fee when the county auditor transfers a deed: a mandatory state fee of $1 per $1,000 plus a county fee of up to $3 per $1,000, so up to 0.4% in total. The seller pays. Ohio has no mortgage tax.

Key Rules

(a) Deed transfer, conveyance or excise tax

• Rate. Mandatory county auditor fee of 1 mill (R.C. 319.54(G)(3)) plus county permissive tax up to 3 mills (R.C. 322.02), paid by the grantor. Check the county's current permissive rate.
• Who pays. The grantor.
• Statement of value (DTE 100) is filed with the auditor.

(b) Mortgage, indebtedness or intangible tax

• None. Ohio has no mortgage, indebtedness or intangible tax on recording a mortgage or deed of trust, so future advances, credit lines, refinances and modifications carry no state recording tax (only recording fees).

(c) Other recording taxes and fees

• County recorder fees (R.C. 317.32). $34 for the first two pages and $8 for each additional page (base fee plus housing trust fund fee), plus a document preservation surcharge of up to $5.

Practice Points

1. Worked example (county at the 4-mill maximum, $400,000): $1,600.
2. No mortgage tax on loans.

Citations

• R.C. 319.54 (county auditor conveyance fee): https://codes.ohio.gov/ohio-revised-code/section-319.54
• R.C. 322.02 (county permissive fee): https://codes.ohio.gov/ohio-revised-code/section-322.02
• R.C. 317.32 (recorder fees): https://codes.ohio.gov/ohio-revised-code/section-317.32