CTI Commercial
Title Update Reprinted with Permission from Linda M. Green, Esq., Underwriter,
Chicago Title Insurance Co.
Happy
New Year to all and to start the New Year we want to make you aware of two
important bills that were passed by the Ohio legislature at the end of 2014.
Amended Substitute House Bill 201 requires lenders on both residential and commercial property to record a satisfaction of mortgage within 90 days from the receipt of funds sufficient to satisfy the mortgage debt. If the mortgage is not satisfied within 90 days, the current owner of the property may provide the lender with a written notice of lender's failure to file a satisfaction. If after 15 days of the receipt of the notice the lender has still failed to record a mortgage satisfaction the owner may bring a civil action to recover reasonable attorney fees and costs incurred in filing the action plus damages of $100 for each day of lender's non-compliance, not to exceed $5,000 in damages.
Substitute House Bill 9 creates a statutory framework for a receiver to sell real property by private sale, private auction or public auction, including the sale of real property free and clear of all liens except for a lien for real estate taxes and assessments. Before authorizing a receivership sale the court may require the receiver to provide evidence of the value of the property and market the property for sale. The bill also provides that any receivership sale can be made only after the following have occurred:
Amended Substitute House Bill 201 requires lenders on both residential and commercial property to record a satisfaction of mortgage within 90 days from the receipt of funds sufficient to satisfy the mortgage debt. If the mortgage is not satisfied within 90 days, the current owner of the property may provide the lender with a written notice of lender's failure to file a satisfaction. If after 15 days of the receipt of the notice the lender has still failed to record a mortgage satisfaction the owner may bring a civil action to recover reasonable attorney fees and costs incurred in filing the action plus damages of $100 for each day of lender's non-compliance, not to exceed $5,000 in damages.
Substitute House Bill 9 creates a statutory framework for a receiver to sell real property by private sale, private auction or public auction, including the sale of real property free and clear of all liens except for a lien for real estate taxes and assessments. Before authorizing a receivership sale the court may require the receiver to provide evidence of the value of the property and market the property for sale. The bill also provides that any receivership sale can be made only after the following have occurred:
a. An application is made by
either the receiver or the first mortgage holder to sell the property and
either the specific terms of the offer to purchase are disclosed or the procedure for
the conduct of the sale is outlined.
b. 10 days prior to the application, a written notice of the intent to sell is served on all parties having an interest in the property as determined by a preliminary judicial report or a commitment for an owner's policy of title insurance.
c. An opportunity for a hearing is given to all interested parties.
d. The court has issued a final appealable order of sale of the real property.
b. 10 days prior to the application, a written notice of the intent to sell is served on all parties having an interest in the property as determined by a preliminary judicial report or a commitment for an owner's policy of title insurance.
c. An opportunity for a hearing is given to all interested parties.
d. The court has issued a final appealable order of sale of the real property.
This is just a brief synopsis of these two bills. If you would like any further information or copies of either of these bills please contact Linda Green at linda.green@ctt.com
Chicago Title has been serving
Ohio for over 50 years. Through their nationwide network, they provide title
insurance, underwriting, escrow and closing services to every spectrum of the
real estate industry. For more information, visit them at : www.cticnow.com
3 comments :
Substitute House Bill 9 is clear-cut real estate legislation and is nothing but beneficial in the long run to streamline judicial processes for all parties involved.
I think it can be really beneficial to be in touch with a real estate lawyer every time you are dealing with real estate. Especially with the real estate legislation mentioned in this article. It's good to make sure you know everything that's going on. http://www.rellapaolini.com/residential_and_commercial_real_estate_development.html
Things like this make a really good case for hiring a real estate attorney. I just started getting involved in real estate investing and it gets pretty tricky, especially if you do it in different states. There's no way I'd be able to keep up with all the changes in real estate laws. I'm thinking I need to start looking at attorneys to find one that's good with real estate law. http://www.hesserealestatelawriverside.com
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