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Ohio

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Ohio — Tax & Mortgage Foreclosure

Legal information, not legal advice. Verify against the cited primary sources before acting. Last verified: 2026-06-10.

Ohio runs a hybrid system. Counties may (a) judicially foreclose the state’s first lien for delinquent taxes under right-of-redemption rules in R.C. Chapter 5721; (b) sell transferable tax lien certificates to private investors (R.C. 5721.30–5721.43); or (c) use an expedited administrative foreclosure before a county board of revision for “abandoned land,” which can transfer title directly to a land bank without any sale (R.C. 323.65–323.79). That third path is the locus of Ohio’s tyler-v-hennepin-county exposure, because a direct transfer historically returned no surplus equity to the former owner.

0. Identity & Classification

  • Recording unit: county (count: 88) — Source: codes.ohio.gov (county-based auditor/treasurer scheme throughout Title 57).
  • Tax sale type: hybrid — judicial foreclosure of state tax lien (R.C. 5721.18) + redeemable tax lien certificates (R.C. 5721.30+) + forfeited-land sale (R.C. Ch. 5723).
  • Tax foreclosure process: both — judicial (common pleas, R.C. 5721.18) and administrative/expedited (county board of revision, R.C. 323.65–323.79).
  • Mortgage foreclosure process: judicial (court order of sale; equity of redemption cut off at confirmation, R.C. 2329.33).
  • Selling authority: county sheriff (execution sales) / county auditor (forfeited-land sales, R.C. Ch. 5723); county treasurer issues tax certificates.
  • Statutory home: Title 57 (Taxation), Ch. 5721 Delinquent Lands — https://codes.ohio.gov/ohio-revised-code/chapter-5721 ; Ch. 5723 Forfeited Lands — https://codes.ohio.gov/ohio-revised-code/chapter-5723 ; R.C. 323.65–323.79 (board of revision) — https://codes.ohio.gov/ohio-revised-code/section-323.65
  • Tyler v. Hennepin compliance: reformed_post_Tyler — The ordinary foreclosure-sale path does return residue to the former owner (R.C. 5721.20). The direct-transfer-to-land-bank path under R.C. 323.78 was held by the federal Sixth Circuit in harrison-v-montgomery-county (997 F.3d 643 (6th Cir. 2021)) to present a viable federal takings claim where surplus equity vanished; post-Tyler, the Ohio Supreme Court in us-bank-trust-v-cuyahoga-county (2023-Ohio-1063) upheld the expedited process as supplying adequate process (redemption, transfer to common pleas, appeal). Ohio House Bill 315 (135th GA), signed by Governor DeWine and effective April 3, 2025, amended R.C. 323.78 to require public auction or solicitation of bids before any direct transfer and to route excess sale proceeds (sale price minus taxes/costs) to the county treasurer within 45 days, thereafter treated as surplus under R.C. 5721.20, thereby providing a surplus-return mechanism to the former owner. Ohio HB 86 (136th GA) — which would extend the BOR appeal window from 14 to 30 days and make additional Tyler-related reforms — was pending in the Senate as of June 2026 and is not yet enacted. Source: R.C. 323.78 (eff. Apr. 3, 2025) — https://codes.ohio.gov/ohio-revised-code/section-323.78

1. Tax Sale Mechanics

  • What is sold: either a tax lien certificate (R.C. 5721.30+) or, after judicial foreclosure, the deed at sheriff’s sale (R.C. 5721.19). Forfeited land (never redeemed, no bid at foreclosure) is later sold by the auditor (R.C. Ch. 5723).
  • Bidding method: certificates — bid-down interest at public auction, or negotiated/block sale; foreclosure sales — highest bid at sheriff’s sale. Source: https://codes.ohio.gov/ohio-revised-code/section-5721.30
  • Interest or penalty (certificates): certificate rate of interest = simple interest per year bid by the winning bidder, statutory maximum 18%/yr, not less than 0%. R.C. 5721.30 — https://codes.ohio.gov/ohio-revised-code/section-5721.30
  • Certificate redemption price (auction): purchase price plus the greater of simple interest at the certificate rate or 6% of the purchase price. R.C. 5721.30/5721.38 — https://codes.ohio.gov/ohio-revised-code/section-5721.38
  • Minimum bid composition (foreclosure sale): court orders sale for the greater of (i) the county auditor’s fair-market value plus costs, or (ii) total taxes, assessments, charges, penalties, interest plus costs. R.C. 5721.19 — https://codes.ohio.gov/ohio-revised-code/section-5721.19
  • Sale frequency / typical month: rolling; sheriff sales scheduled as cases mature (no single statewide sale date). [see needs_verification — typical month]
  • Venue: both in-person and online. Ohio sheriff sales largely migrated to a state-designated online platform. [see needs_verification — platform vendor]
  • Registration & deposit: set by county sheriff / certificate-sale terms. [see needs_verification — uniform deposit %]
  • Subsequent taxes (“subs”): in a certificate sale, the certificate purchase price excludes delinquent taxes already transferred by prior certificate sales; certificate holders may purchase subsequent certificates on the same parcel. R.C. 5721.30 — https://codes.ohio.gov/ohio-revised-code/section-5721.30

2. Right of Redemption → see right-of-redemption

  • Pre-sale right (foreclosure path): exists. Delinquent land “may be redeemed before foreclosure proceedings have been instituted,” and even after, up until the filing of the entry of confirmation of sale, by paying all taxes, assessments, penalties, interest, charges then due plus costs. R.C. 5721.25 — https://codes.ohio.gov/ohio-revised-code/section-5721.25
  • Post-sale period: none for the tax-foreclosure deed — the equity of redemption is extinguished at confirmation of sale; there is no statutory post-confirmation redemption window. R.C. 5721.25, 5721.19 — https://codes.ohio.gov/ohio-revised-code/section-5721.25
  • Certificate path redemption: owner/interested party may redeem at any time before the certificate holder pays the treasurer to initiate foreclosure (paying redemption prices only); after initiation and before the entry of confirmation, redemption requires redemption prices plus interest, fees, attorney’s fees and costs. Installment plans available for one year from the certificate sale (or until decree). R.C. 5721.38 — https://codes.ohio.gov/ohio-revised-code/section-5721.38
  • Who may redeem: broad. The Ohio Supreme Court held “any person entitled to redeem the land” includes mortgagees / lienholders, not just the owner-debtor. in-re-foreclosure-of-liens-2014 (2014-Ohio-3656) — http://www.courtnewsohio.gov/cases/2014/sco/0902/130713.asp
  • Amount formula: all delinquent taxes, assessments, penalties, interest, charges then due and unpaid plus costs of any proceeding instituted. R.C. 5721.25 — https://codes.ohio.gov/ohio-revised-code/section-5721.25
  • Certificate-holder premium: at redemption, greater of certificate-rate interest or 6% of purchase price (auction certificates). R.C. 5721.30 — https://codes.ohio.gov/ohio-revised-code/section-5721.30
  • Extinguishment: confirmation of sale (foreclosure) or expiration/transfer under board-of-revision alternative redemption period (R.C. 323.78). https://codes.ohio.gov/ohio-revised-code/section-323.78
  • Special tolling (minors/incompetents/SCRA/bankruptcy): [see needs_verification — Ohio-specific statutory disability tolling for tax redemption].

3. Surplus / Excess Proceeds → see surplus-funds, third-party-recovery-rules

  • Belongs to: former owner (residue after the tax debt and costs), via a priority waterfall.
  • Claim waterfall (foreclosure sale, R.C. 5721.19): (1) costs of the proceeding; (2) 5% of taxes/assessments to the delinquent-collection fund; (3) taxes, assessments, charges, penalties, interest to the taxing districts proportionally; (4) other liens by priority; (5) residue to the owner. Source: https://codes.ohio.gov/ohio-revised-code/section-5721.19
  • Filing venue: county that held the sale — clerk of the common pleas court notifies the owner of residue; the county treasurer holds the funds. R.C. 5721.20 — https://codes.ohio.gov/ohio-revised-code/section-5721.20
  • Claim deadline (foreclosed land residue): owner has three years from the date of receipt of the funds by the treasurer to demand payment; the clerk must notify per R.C. 2329.44(A). R.C. 5721.20 — https://codes.ohio.gov/ohio-revised-code/section-5721.20
  • Escheat / forfeiture: if unclaimed within three years, the residue is forfeited to the delinquent tax and assessment collection fund (R.C. 321.261) or, in counties with a land-reutilization corporation, to that corporation’s fund (R.C. 321.263). R.C. 5721.20 — https://codes.ohio.gov/ohio-revised-code/section-5721.20
  • Forfeited-land sale excess (R.C. Ch. 5723): auditor charges the treasurer with the excess in the name of the supposed owner; owner must demand within one year from the day of sale; the treasurer may interplead in common pleas to determine the proper owner. R.C. 5723.11 — https://codes.ohio.gov/ohio-revised-code/section-5723.11. The one-year deadline has been in effect since the section was last amended by S.B. 353, 127th GA, effective April 7, 2009. Any reference to a six-year deadline reflects a pre-2009 version; the current law unambiguously sets one year.
  • Direct-transfer-to-land-bank path (R.C. 323.78, as amended eff. Apr. 3, 2025 by H.B. 315): Following the H.B. 315 amendment, the receiving entity (municipality, township, county, school district, CDO, or county land reutilization corporation) must sell the property by public auction or public solicitation of bids before a direct transfer is authorized; the prior “without appraisal and without a sale” regime was narrowed. If the sale price exceeds the sum of taxes/assessments/penalties/interest/costs plus foreclosure and post-transfer carrying costs, the excess must be delivered to the county treasurer within 45 days and is thereafter treated as surplus under R.C. 5721.20 — meaning the former owner has three years from the treasurer’s receipt to demand payment. The acquiring entity must maintain records of these calculations for three years (public documents). R.C. 323.78 (eff. Apr. 3, 2025) — https://codes.ohio.gov/ohio-revised-code/section-323.78
  • Third-party recovery (surplus recovery agents):
    • fee_cap_pct: [see needs_verification — Ohio has no general statutory percentage cap for tax-surplus recovery agents that I could verify against a primary source]
    • licensing_required: [see needs_verification — verify whether private-investigator/finder licensing applies]
    • assignment_of_claim_allowed: [see needs_verification — verify assignability of R.C. 5721.20 residue claim]
    • cooling_off / disclosure / prohibited_practices: [see needs_verification]
    • citation: none verified.
  • Notice to former owner required: yes — clerk must notify the owner of any residue (R.C. 5721.20) and certified-mail notice to owners/lienholders precedes foreclosure (R.C. 5721.18(B)). https://codes.ohio.gov/ohio-revised-code/section-5721.20

▸ For Investors / Operators — An Ohio tax-foreclosure sheriff’s sale that brings more than the tax debt and costs generates a residue that R.C. 5721.19/5721.20 routes through a waterfall to the former owner. Acquisition exposure differs sharply by path: weigh the redemption risk (§2/2b — redemption runs until confirmation of sale, and “any person entitled to redeem” includes mortgagees/lienholders per In re Foreclosure of Liens), the path to marketable/insurable title (§5b — common-pleas quiet title under R.C. 5303.01, the 40-year Marketable Title Act at R.C. 5301.47–5301.56, and 1–5 year insurer seasoning), and which liens survive (§7b — federal tax liens preserved by R.C. 5721.19(F)(2) absent IRS § 7425 notice, the IRS 120-day redemption, and pre-confirmation municipal abatement costs that do not follow to arm’s-length buyers under R.C. 715.261). The board-of-revision / direct-transfer-to-land-bank path (R.C. 323.78) is the locus of Ohio’s Tyler exposure (§11b).

▸ For Former Owners — When an Ohio tax-foreclosure sale brings more than the taxes and costs, the residue belongs to the former owner (R.C. 5721.19, 5721.20). The clerk of courts must notify the owner; the county treasurer holds the funds, and the owner has three years from the treasurer’s receipt to demand payment before the residue is forfeited to the delinquent-tax collection fund (or land-bank fund). Forfeited-land-sale excess (R.C. 5723.11) must be claimed within one year of the day of sale.

4. Mortgage Foreclosure

  • Process: judicial. Mortgagee sues in common pleas; court enters judgment and order of sale; sheriff sells.
  • Timeline: (1) Appraisal by the county auditor or three appraisers appointed by the court; (2) publication notice once a week for at least three consecutive weeks before the sale date in a newspaper of general circulation in the county (R.C. 2329.26); (3) written notice served on the judgment debtor and parties, with proof of service filed with the court at least seven calendar days before the sale (R.C. 2329.26); (4) sheriff’s sale; (5) court confirmation — the court must enter a confirmation journal entry within 30 days of the return of the writ (R.C. 2329.31); (6) purchaser pays balance within 30 days of confirmation; (7) officer records deed within 14 days after balance paid. R.C. 2329.26 — https://codes.ohio.gov/ohio-revised-code/section-2329.26 ; R.C. 2329.31 — https://codes.ohio.gov/ohio-revised-code/section-2329.31.
  • Minimum-price floor: property may not be sold for less than two-thirds of the appraised value at the first sale (R.C. 2329.20). Exceptions: (a) for junior-lien enforcement against property encumbered by a senior lien, the two-thirds is calculated off the equity above the senior lien (not the full appraised value) (R.C. 2329.20); (b) if the property fails to sell at the first auction for want of bidders, a second auction is held not earlier than 7 days and not later than 30 days after the first, at which the property is sold to the highest bidder without regard to the minimum bid requirement (R.C. 2329.52); (c) after two failed auctions, the court may direct the sale amount (R.C. 2329.51). R.C. 2329.20 — https://codes.ohio.gov/ohio-revised-code/section-2329.20 ; R.C. 2329.52 — https://codes.ohio.gov/ohio-revised-code/section-2329.52.
  • Reinstatement right: [see needs_verification — Ohio has no general statutory reinstatement statute; typically governed by loan contract / FHA].
  • Redemption after sale: equity of redemption exists until confirmation of the sale; debtor may redeem before confirmation by depositing the judgment amount, costs, and 8%/yr interest on the purchase money from sale to deposit. R.C. 2329.33 — https://codes.ohio.gov/ohio-revised-code/section-2329.33
  • Deficiency judgment: allowed, but a money judgment on a mortgage securing a 1–2 family dwelling used as a home is unenforceable as to any deficiency after two years from confirmation of the judicial sale. R.C. 2329.08 — https://codes.ohio.gov/ohio-revised-code/section-2329.08
  • Surplus distribution: sale proceeds applied to costs, taxes, the foreclosing lien, junior liens by priority, then residue to the owner under R.C. 2329.44. The officer must deliver remaining balance to the clerk not later than 45 days after confirmation of sale. The clerk then notifies the debtor: for balances of $500 or more, by certified mail (return receipt requested); for less than$500, by ordinary mail. If certified or ordinary mail fails, by newspaper advertisement, website, text message, or courthouse posting. If the balance remains unclaimed 90 days after the final notice attempt, the clerk disposes of it as unclaimed money under R.C. 2335.34–2335.35. R.C. 2329.44 (eff. Apr. 3, 2025) — https://codes.ohio.gov/ohio-revised-code/section-2329.44.
  • Sale officer: sheriff.

5. Sale Procedure Playbooks

  • Tax foreclosure (judicial) — ordered steps → see treasurer-sale, sheriff-sale:
    1. Auditor certifies delinquent land list; one year later issues delinquent land tax certificate to the prosecutor (R.C. 5721.13). https://codes.ohio.gov/ohio-revised-code/section-5721.13
    2. After one year delinquent-certified (or two years for in-rem path), county prosecutor files foreclosure in common pleas (R.C. 5721.18). https://codes.ohio.gov/ohio-revised-code/section-5721.18
    3. Title search; certified-mail notice to last-known owner + lienholders + publication.
    4. Court enters finding of amounts due and orders sale at statutory minimum (R.C. 5721.19).
    5. Sheriff’s sale; owner may redeem any time before confirmation (R.C. 5721.25).
    6. Confirmation cuts off redemption; proceeds distributed; residue to owner (R.C. 5721.19, 5721.20).
  • Tax certificate path — ordered steps:
    1. Treasurer sells certificate (auction bid-down interest, or negotiated/block) (R.C. 5721.31–5721.33).
    2. One year from certificate sale must elapse before the holder may request foreclosure (R.C. 5721.37). https://codes.ohio.gov/ohio-revised-code/section-5721.37
    3. Owner may redeem at escalating cost up to confirmation (R.C. 5721.38).
    4. Foreclosure → sheriff’s sale → confirmation.
  • Board-of-revision (expedited) path: auditor/treasurer certifies abandoned land; complaint to the county board of revision; notice; alternative redemption period under R.C. 323.78; if unredeemed, sale or direct transfer to a land bank without sale. https://codes.ohio.gov/ohio-revised-code/section-323.78
  • Notice requirements: publication once a week for three consecutive weeks in a newspaper of general circulation OR once + county/court website posting for one year; certified-mail notice (within 30 days of filing) to each last-known owner, lienholder, or interested party (R.C. 5721.18(B); form per R.C. 5721.181). https://codes.ohio.gov/ohio-revised-code/section-5721.18
  • Upset bid / confirmation: Ohio uses court confirmation (not a North-Carolina-style upset-bid window). Equity of redemption survives until confirmation. R.C. 2329.33 / 5721.25.
  • Payment terms: set by sale officer (sheriff) terms. [see needs_verification — deposit and balance deadlines].
  • Deed issued: sheriff’s deed (foreclosure) or auditor’s deed (forfeited land). Treated as conveying the foreclosed interest; not a warranty deed.

6. Due Process & Notice → see due-process-notice

7. Title & Marketability

  • Deed warranty level: none — sheriff’s/auditor’s deed conveys only the foreclosed/forfeited interest (no covenants of warranty).
  • Marketable immediately? Generally no as a practical matter; title insurers commonly require a quiet-title action or seasoning before insuring. [see needs_verification — title-insurer practice citation].
  • Quiet title required? Often, in practice. [see needs_verification — confirm with primary authority].
  • SOL to challenge deed (tax-certificate foreclosure): For tax-certificate foreclosures, R.C. 5721.39 declares title incontestable in the purchaser upon the filing of the entry of confirmation of sale, and provides that title “shall not be invalid because of any irregularity, informality, or omission of any proceedings under this chapter.” The only exceptions are (1) a federal tax lien properly filed before the action and foreclosed under 28 U.S.C. § 2410(c), (2) easements/covenants running with the land created before the taxes became due, and (3) a prior redemption. In practice this means procedural challenges to tax-certificate foreclosure title are barred immediately on confirmation — there is no separate post-confirmation SOL. R.C. 5721.39 — https://codes.ohio.gov/ohio-revised-code/section-5721.39. For mortgage foreclosure confirmed sales, challenges proceed under Ohio Civ. R. 60(B) (motion for relief from judgment within one year for specified grounds, or within a “reasonable time”) or by direct appeal; R.C. 2329.45 protects bona fide purchasers from title loss due to reversal on appeal, providing restitution to the former owner instead.
  • Title insurance availability: available after curative steps; varies by underwriter. For tax-certificate foreclosure deeds, R.C. 5721.39’s incontestability-upon-confirmation rule removes most procedural challenges as a basis for title-insurance denial, but underwriters still require a seasoning period or quiet title because of the federal tax lien exception (IRS 120-day redemption), unknown-heir risks, and environmental liens not subject to state confirmation. [see needs_verification — current underwriter appetite for immediate post-tax-sale policies].
  • Common defects: defective notice to owner/lienholder; unredeemed federal tax lien (120-day federal redemption); bankruptcy stay; heirs/unknown interests.

8. Case Law (real, verified)

CaseYearTopicHolding (plain English)Source
harrison-v-montgomery-county2021surplus / due_process6th Cir. (997 F.3d 643): owner whose tax-delinquent home was transferred to a county land bank with no return of ~$3K surplus equity may bring a federal §1983 takings claim in federal court; Ohio’s direct-transfer route extinguishes surplus equity with no auction.https://law.justia.com/cases/federal/appellate-courts/ca6/20-4051/20-4051-2021-05-11.html
us-bank-trust-v-cuyahoga-county2023due_process / sale_procedureOhio Supreme Court (2023-Ohio-1063): upheld the expedited board-of-revision foreclosure; the statutory scheme (redemption, transfer to common pleas, appeal) supplies adequate process; mandamus denied; a mortgagee acquiring the mortgage after adjudication lacked standing.https://www.supremecourt.ohio.gov/rod/docs/pdf/0/2023/2023-Ohio-1063.pdf
in-re-foreclosure-of-liens-20142014redemptionOhio Supreme Court (2014-Ohio-3656): “any person entitled to redeem the land” in a tax foreclosure includes mortgagees/lienholders, not just the owner-debtor (broader than the “debtor”-only mortgage redemption statute).http://www.courtnewsohio.gov/cases/2014/sco/0902/130713.asp
tyler-v-hennepin-county2023surplusU.S. Supreme Court (598 U.S. 631): government retention of surplus equity above the tax debt is an unconstitutional taking; the controlling landmark Ohio’s land-bank/direct-transfer scheme must reconcile with.https://www.supremecourt.gov/opinions/22pdf/22-166_8n59.pdf
freed-v-thomas-20202023surplus6th Cir.: just compensation for tax-foreclosure home-equity taking is the surplus the government kept, not the property’s full fair market value (Michigan facts; governs Ohio’s circuit).https://www.inversecondemnation.com/inversecondemnation/2023/09/ca6-in-home-equity-theft-taking-just-compensation-is-the-excess-the-goverment-kept-not-the-value-of-.html

Topic coverage: redemption ✓ (In re Foreclosure of Liens 2014), surplus ✓ (Harrison; Tyler; Freed), due_process ✓ (US Bank Trust; Harrison), sale_procedure ✓ (US Bank Trust).

9. Edge Cases (state-specific notes)

10. Operations

  • Where records live: county auditor (valuation, delinquent list, forfeited-land/auditor’s deed), county treasurer (taxes, tax certificates, surplus funds), county clerk of courts (foreclosure cases, residue notice), county sheriff (sale execution), county recorder (deeds).
  • Public portals: Ohio Revised Code — https://codes.ohio.gov/ohio-revised-code/chapter-5721 ; county fiscal-officer forfeited-land pages, e.g., Cuyahoga County — https://cuyahogacounty.gov/fiscal-officer/departments/real-property/forfeited-lands
  • Typical costs: filing costs, publication, sheriff fees, certificate purchase price + up to 18%/yr; surplus claims free to file with treasurer/clerk.
  • Typical timelines: ~1 year delinquent-certification wait before judicial foreclosure (2 years for in-rem); 1 year for certificate-holder foreclosure; 3-year window to claim foreclosure residue (R.C. 5721.20); 1-year window for forfeited-land excess (R.C. 5723.11).
  • Key agencies: County Auditor, County Treasurer, County Prosecuting Attorney, County Board of Revision, County Land Reutilization Corporation (land bank), County Sheriff, Clerk of Courts.
  • Useful forms: R.C. 5721.181 statutory notice form; county surplus/residue claim forms. [see needs_verification — link a live county claim form].

2b. Redemption Advanced

Assignability of the Statutory Redemption Right

Ohio’s tax-foreclosure redemption statutes (R.C. 5721.25 and R.C. 5721.38) confer the right on “any person entitled to redeem the land” without expressly restricting or permitting assignment to third-party strangers. The Ohio Supreme Court in in-re-foreclosure-of-liens-2014 (2014-Ohio-3656) confirmed that mortgagees and lienholders qualify as persons entitled to redeem in a tax foreclosure — expanding the class beyond the owner-debtor alone. No Ohio statute expressly authorizes a stranger to the title (e.g., a commercial redemption investor) to purchase and exercise the redemption right. The better-supported reading is that the right travels with an ownership or lien interest and is not freely assignable in isolation. [needs_verification — no Ohio appellate case directly ruling on voluntary assignment of the R.C. 5721.25 redemption right to a third-party stranger; verify against Ohio common-pleas practice or secondary treatise.]

Equitable Redemption vs. Statutory Redemption

Ohio recognizes a distinction between the equitable right of redemption (the common-law right existing before sale, rooted in equity jurisdiction) and the statutory right of redemption (R.C. 5721.25, 5721.38, 2329.33). In Ohio mortgage foreclosure, the equity of redemption runs until confirmation of sale (R.C. 2329.33 — effective September 28, 2016 version); R.C. 2308.03 expressly states that “the equitable and statutory rights to redemption…expire upon the confirmation of sale of the property.” — https://codes.ohio.gov/ohio-revised-code/section-2308.03. No post-confirmation statutory redemption window exists for tax-deed properties; for mortgage foreclosures, R.C. 2329.33 allows redemption before confirmation. [needs_verification — Ohio case law treating equitable vs. statutory redemption as formally distinct doctrines in tax context.]

  • Pre-sale only: The equitable equity of redemption in mortgage foreclosure is pre-confirmation only (R.C. 2308.03, 2329.33). Tax-foreclosure redemption likewise runs to confirmation (R.C. 5721.25).
  • Available pre-sale: Yes; available post-filing until confirmation.
  • Distinct doctrine: Functionally merged in Ohio — confirmation cuts off both equitable and statutory rights simultaneously.

Installment Redemption

R.C. 5721.38 expressly permits installment payment plans in the certificate path: (1) a “standard plan” if initiated within one year of certificate sale, with the final installment also due within one year; and (2) an “extended plan” available during foreclosure proceedings with an administrative fee capped at $100/year. The judicial foreclosure path (R.C. 5721.25) permits a delinquent-tax-contract (spread over up to five years) for persons who have not previously defaulted on such a contract. R.C. 5721.25 — https://codes.ohio.gov/ohio-revised-code/section-5721.25.

Assignment of Tax Certificate by the Certificate Holder (Mid-Redemption)

A tax-certificate holder may transfer/assign the certificate to another party under R.C. 5721.36. The transfer process requires: (1) the holder endorses the certificate; (2) the endorsement is sworn before a notary public; (3) the $20 transfer fee is paid to the county treasurer; and (4) the transferee presents an endorsed certificate plus notarized government ID showing a taxpayer identification number. Key restriction: a certificate may not be transferred to the owner of the certificate parcel or any corporation, partnership, or association in which such owner has an interest (R.C. 5721.36). County land reutilization corporations have broader authority. Only the certificate holder of record (or their attorney, or secured party if a security interest is registered) may file for foreclosure. R.C. 5721.36 — https://codes.ohio.gov/ohio-revised-code/section-5721.36.

3b. Surplus Advanced

Assignability of the Surplus Claim

Ohio law does not contain a statute expressly authorizing or prohibiting the outright assignment of the R.C. 5721.20 foreclosure-sale residue claim (as distinct from a contingency-fee recovery-agent contract). The residue “belongs to” the former owner (R.C. 5721.19, 5721.20) and Ohio’s general common-law rules on assignment of choses in action — under which most contractual and statutory money claims are assignable unless the statute or public policy prohibits — would presumptively permit assignment. However, no primary Ohio source retrieved expressly confirms that a tax-sale surplus claim may be fully assigned to a third party. [needs_verification — confirm assignability under Ohio case law or OAG opinion; verify whether any Ohio statute prohibits recovery agents from taking an assignment rather than a contingency fee.]

  • Full assignment permitted: [needs_verification]
  • Fee-agreement vs. assignment distinction: Ohio imposes no statutory fee cap on surplus-recovery agents for tax-foreclosure residue (no primary source verified for a general cap); the distinction is operative legally but unregulated by statute in Ohio. [needs_verification — secondary sources suggest no cap; verify with primary authority.]
  • Citation: R.C. 5721.20 — https://codes.ohio.gov/ohio-revised-code/section-5721.20

Statute of Limitations on Surplus Claims

PathPeriodTriggerCitation
Judicial foreclosure residue (R.C. 5721.20)3 years”Within three years of receipt” of funds by the county treasurerR.C. 5721.20 — https://codes.ohio.gov/ohio-revised-code/section-5721.20
Forfeited-land sale excess (R.C. 5723.11)1 year”From the day of sale”R.C. 5723.11 — https://codes.ohio.gov/ohio-revised-code/section-5723.11
Execution/mortgage-foreclosure excess (R.C. 2329.44)90 days after final notice for clerk to pay to debtor; then unclaimed-property statute appliesDate of final notice by clerkR.C. 2329.44 (amended Apr. 3, 2025) — https://codes.ohio.gov/ohio-revised-code/section-2329.44

R.C. 5723.11 one-year deadline confirmed: amended by S.B. 353, 127th GA, effective April 7, 2009. Any prior reference to a six-year period reflects pre-2009 law; the current one-year deadline is settled.

Competing Claimant Procedure

Under R.C. 5723.11 (forfeited-land excess), if the treasurer doubts a claimant’s right to the excess or if multiple parties claim the funds, the treasurer must file a civil interpleader action in the county court of common pleas, naming the state and all claimants as defendants. Legal costs are allocated by court order. The prosecuting attorney acts on behalf of the treasurer. R.C. 5723.11 — https://codes.ohio.gov/ohio-revised-code/section-5723.11. For R.C. 5721.20 foreclosure residue, the clerk notifies the owner; competing claimants (e.g., lienholders with unresolved claims) would litigate in common pleas. [needs_verification — confirm interpleader procedure for R.C. 5721.20 residue; no express statutory text retrieved for that specific scenario.]

  • First-to-file priority: No — interpleader resolves priority by court order, not filing race.
  • Interpleader used: Yes, expressly for R.C. 5723.11. Likely available for R.C. 5721.20 under general civil-procedure rules.

Deceased Owner Procedure

R.C. 5721.20 and 5723.11 speak to the “owner” without expressly addressing deceased owners. Under Ohio general law, a decedent’s personal representative (executor or administrator) appointed by the probate court has authority to collect assets of the estate, including a surplus-fund claim. Ohio’s small estate affidavit (release from administration) under R.C. 2113.03 allows heirs to collect estate assets without full probate when the estate does not exceed $35,000 (general) or $100,000 (surviving spouse who inherits everything). A surplus check within that threshold could be collected by affidavit; above the threshold, formal probate/appointment of a personal representative is required before the county treasurer will disburse. R.C. 2113.03 — https://codes.ohio.gov/ohio-revised-code/section-2113.03. [needs_verification — confirm whether county treasurers in practice accept R.C. 2113.03 affidavits for surplus-fund disbursements, or require Letters of Administration regardless.]

  • Probate likely required first: Yes, for estates above $35,000 (or$100,000 surviving-spouse threshold) per R.C. 2113.03.
  • Personal representative has standing: Yes — as a matter of Ohio probate/civil procedure.
  • Small estate affidavit: Potentially available for claims within the R.C. 2113.03 threshold ($35,000 /$100,000) — primary source confirmed; county practice on accepting affidavits for surplus distributions still needs_verification.

Fraudulent Conveyance Exposure for Surplus Claim Assignments

If a former owner assigns their surplus claim while insolvent, the assignment may be voidable by the owner’s creditors under Ohio’s Uniform Voidable Transactions Act, R.C. Chapter 1336. R.C. 1336.04 provides that a transfer is fraudulent as to a creditor if made with actual intent to hinder, delay, or defraud any creditor, or (constructively) if made without reasonably equivalent value when the debtor’s remaining assets were unreasonably small or the debtor was incurring debts beyond their repayment capacity. Creditors have up to four years after the transfer (or one year after discovery) to bring a claim. R.C. 1336.04 — https://codes.ohio.gov/ohio-revised-code/section-1336.04. The practical risk is real where a property owner in financial distress assigns a substantial surplus claim for a nominal upfront payment.

Surplus Claimant Notice

R.C. 5721.20 requires the clerk of courts to notify the owner of any foreclosure-sale residue. R.C. 2329.44 (execution-sale excess) requires the clerk to attempt certified mail to the debtor’s known address; if that fails, ordinary mail; if address is unknown, newspaper/website/text/courthouse posting. The clerk must notify lienholders only to the extent they appear as parties in the original action. R.C. 5721.20 — https://codes.ohio.gov/ohio-revised-code/section-5721.20 ; R.C. 2329.44 — https://codes.ohio.gov/ohio-revised-code/section-2329.44.

5b. Title Advanced

Quiet Title: When Required, Action Type, Court, Timeline, Cost

Ohio does not impose a statutory mandate that every tax-deed purchaser bring a quiet-title action. However, in practice title insurers will not insure a tax-foreclosure or tax-deed title without either a completed quiet-title action or significant seasoning. The quiet-title cause of action in Ohio is governed by R.C. 5303.01 (action by a person in possession or with a remainder/reversion interest against any adverse claimant). [needs_verification — confirm whether a separate statute or case law expressly requires quiet title after tax-forfeiture deeds specifically, vs. recommending it as best practice.]

  • When required: Recommended/practically required; not expressly mandated by statute after every tax sale, but required before most title insurers will issue a policy.
  • Action type: Judicial (R.C. 5303.01 — common pleas court).
  • Court with jurisdiction: Court of Common Pleas in the county where the property is located. R.C. 5303.01 — https://codes.ohio.gov/ohio-revised-code/section-5303.01 ; general real-property jurisdiction confirmed by R.C. 2329.xx series.
  • Typical timeline: 3–12 months from filing to judgment, depending on county caseload and whether defendants are found in default.
  • Typical cost: Filing fees ~$150–$300 (county-specific), plus publication costs, attorney’s fees (often $1,000–$3,000 for uncontested matter). [needs_verification — survey of actual Ohio county cost data.]
  • Cures all pre-sale defects: A successful quiet-title judgment, recorded per R.C. 5303.01, extinguishes adverse claims of all parties served and defaulting. It does not retroactively eliminate federal tax liens (IRS redemption period, 26 U.S.C. § 7425) or CERCLA liens not addressed in the action. [needs_verification — confirm scope of Ohio quiet title as to unserved unknown parties.]
  • Citation: R.C. 5303.01 — https://codes.ohio.gov/ohio-revised-code/section-5303.01

Deed Seasoning (Title Insurer Requirements)

Ohio title insurers commonly impose a deed seasoning period of 1–5 years after a tax-foreclosure or auditor’s deed before they will issue a standard owner’s or lender’s title-insurance policy. The rationale is the risk of void-deed challenge (defective notice, federal tax lien redemption, etc.) during that period. Some underwriters will insure earlier if a quiet-title action has been successfully completed and no exceptions appear in the chain of title. [needs_verification — title insurer internal underwriting guidelines are not public primary law; confirm best-practice with Ohio underwriter manual or secondary source.]

  • Insurers require seasoning: Yes, in practice.
  • Typical years: 1–5 (varies by underwriter and whether quiet title was obtained). [needs_verification]
  • Rationale: Risk of void/voidable deed challenge; federal IRS 120-day redemption window; unknown-heir claims.

Title Insurance: Immediate Availability

Title insurance is not immediately available as a routine matter after an Ohio tax-sale deed. Most underwriters require completion of a quiet-title action or a seasoning period. Some will issue an “insured closing letter” or limited policy earlier if: (1) the tax-foreclosure judgment is from a common pleas court (vs. administrative board of revision); (2) a title search shows no federal tax liens; and (3) notice was unimpeachably proper. Known active underwriters in Ohio: Ohio Bar Title Insurance Co., First American, Stewart, Old Republic National Title, Fidelity National Title. [needs_verification — current underwriter appetite for immediate post-tax-sale policies in Ohio.]

  • Immediate availability: No, as a general matter.
  • Conditions for immediate coverage: Court-confirmed judicial foreclosure + no federal tax liens + clean quiet-title judgment. [needs_verification]
  • Quitclaim/special warranty only: Ohio tax deeds (sheriff’s deed, auditor’s deed) convey no warranty; a quiet-title order supplies the clearest title base for subsequent general warranty deeds.

Ohio Marketable Title Act

Ohio has a Marketable Title Act, R.C. 5301.47–5301.56, effective September 29, 1961. The Act establishes a 40-year lookback period: the “root of title” is the most recent recorded conveyance (including tax deeds, sheriff’s deeds, court decrees) at least 40 years old; interests and claims predating the root of title are extinguished. R.C. 5301.47 defines “root of title” and “marketable record title”; R.C. 5301.50 declares all prior interests null and void subject to limited exceptions (preserved by re-recording or filing a claim of interest). This is directly relevant to post-tax-sale title: a sheriff’s deed or auditor’s deed recorded more than 40 years ago may itself become the root of title that extinguishes older adverse claims.

Judicial Confirmation Before Deed Issues

For judicial tax foreclosures (R.C. 5721.19), the court enters an entry of confirmation of sale, after which the sheriff executes and delivers the deed. The redemption right is extinguished at confirmation (R.C. 5721.25). For board-of-revision expedited foreclosures (R.C. 323.65–323.78), the alternative redemption period expires and then the court (or board upon certification to common pleas) enters an order authorizing the deed. For forfeited lands (R.C. Ch. 5723), the auditor conveys by auditor’s deed without separate court confirmation.

Chain-of-Title Cure Depth

A judicial tax foreclosure cuts off all inferior interests and liens (except federal tax liens preserved by IRS notice and CERCLA “superliens”) upon confirmation of sale. It does not cure defects in the chain of title predating the tax-lien origin (e.g., a fraudulent deed in a prior conveyance that the tax authority took title “through”). The Ohio Marketable Title Act (R.C. 5301.47–5301.56) provides the deeper cure for pre-root-of-title claims after 40 years.

5c. TRO & Injunctive Relief

Recognized Grounds for a TRO to Halt a Tax or Mortgage Foreclosure Sale

Ohio courts (common pleas) will consider a TRO to halt a scheduled tax-foreclosure or mortgage-foreclosure sheriff’s sale on any of the following grounds:

  1. Defective notice — certified-mail notice failed to reach the owner and the county did not take additional steps as required by jones-v-flowers (2006) / R.C. 5721.18.
  2. Payment dispute / redemption tender — owner tendered the full redemption amount before confirmation but it was refused or not credited.
  3. Constitutional due-process violation — notice/procedure violated the Fourteenth Amendment (Mullane, Mennonite).
  4. Bankruptcy automatic stay — 11 U.S.C. § 362 automatically halts the sale; a TRO may be sought in both bankruptcy court and state court to enforce.
  5. Servicemembers Civil Relief Act (SCRA) — active-duty servicemember entitled to stay of proceedings.
  6. Fraud or irregularity in the sale procedure — misrepresentation of amounts owed, collusive bidding, etc.
  7. Tax amount dispute — challenge to the amount of delinquency underlying the lien.

Ohio’s TRO/preliminary-injunction standard is the common-law four-part test applied by courts of common pleas under R.C. 2727.02 and Ohio Civil Rule 65:

  1. Plaintiff has a substantial likelihood of success on the merits;
  2. Plaintiff will suffer irreparable harm without relief;
  3. No third parties will be unjustifiably harmed by the injunction; and
  4. The public interest supports granting the injunction. [Dobbs v. Jackson Women’s Health Org. framework aside — Ohio’s injunction standard is its own common-law formulation; see, e.g., Procter & Gamble Co. v. Stoneham, 140 Ohio App.3d 260 (2000) applying the Chalmers test.] [needs_verification — cite a current Ohio appellate case applying the four-part test specifically in a tax-foreclosure context; the general standard is from R.C. 2727.02 and civ. rule 65.]

Court with Jurisdiction

Court of Common Pleas in the county where the property is located. The common pleas court that entered the foreclosure judgment retains continuing jurisdiction and is the appropriate court for emergency relief. In the board-of-revision (expedited) path, a motion to transfer to common pleas (R.C. 323.65 et seq.) or a separate action in common pleas is required to obtain injunctive relief, since the BOR is an administrative tribunal without injunctive power.

Bond Requirement

Ohio courts have discretion under Ohio Civ. R. 65(C) to require the moving party to post a bond or other security as a condition of a TRO or preliminary injunction, in an amount sufficient to compensate the opposing party for any damages suffered if the injunction is wrongly granted. Bonds are commonly required in foreclosure-halt TRO applications; the amount is court-specific and often set at the monthly mortgage payment or carrying costs accruing during the stay. [needs_verification — confirm typical bond amounts in Ohio foreclosure-halt TRO practice from a secondary source.]

  • Bond required: Discretionary; courts routinely require one (Ohio Civ. R. 65(C)).
  • Typical amount: [needs_verification]

Emergency Timeline

A TRO application filed the day of or day before a scheduled sheriff’s sale can be heard within 24–48 hours if the moving party files with proper emergency certification and the court is available. Ohio courts of common pleas have inherent authority to grant ex parte TROs where notice is impracticable and irreparable harm is imminent (Ohio Civ. R. 65(A)). In practice, ex parte relief in foreclosure matters is rare absent extraordinary circumstances; most emergency hearings require same-day or next-day notice to opposing counsel.

Effect on a Completed Sale

If the sale has been completed (hammer falls / auction closes) but the confirmation order has not yet been entered, Ohio courts have authority to set aside the sale for cause (R.C. 2329.33 preserves the court’s authority to set aside a sale predating 1888 rules; modern courts exercise equitable authority to vacate a sale for fraud or irregularity). If the confirmation has been entered, vacating the sale is substantially more difficult; the confirmation is a judicial act that can be attacked only by appeal or Civ. R. 60(B) motion for relief from judgment within one year (or “reasonable time”). [needs_verification — Ohio case law on post-confirmation vacation for constitutional notice defects specifically.]

7b. Lien Survival & Purchaser Exposure

IRS 120-Day Redemption Right (26 U.S.C. § 7425)

Yes, the IRS 120-day post-sale redemption right applies to Ohio tax sales. Under 26 U.S.C. § 7425(d), the United States has the right to redeem real property sold in a nonjudicial sale (and certain judicial sales) within 120 days after the sale, or the period allowable for redemption under state law, whichever is longer. For Ohio tax sales, the IRS must be given advance notice (26 U.S.C. § 7425(b)) at least 25 days before the sale if a federal tax lien is of record. Failure to give proper IRS notice renders the sale void as to the federal lien. R.C. 5721.19(F)(2) expressly preserves “a federal tax lien notice of which is properly filed” through a judicial foreclosure sale — meaning the federal lien is NOT extinguished unless proper notice was given.

HOA Super-Priority

Ohio does not have an HOA super-priority lien statute for homeowners associations. Under R.C. 5311.18, condominium association assessment liens are “prior to any lien or encumbrance subsequently arising or created except liens for real estate taxes and assessments of political subdivisions and liens of first mortgages that have been filed for record.” This means: (a) the condo-association lien is junior to tax liens and first mortgages; (b) there is no six-months-assessment super-priority of the type enacted in states following the Uniform Common Interest Ownership Act (UCIOA). For planned unit developments (HOAs with declaration-based covenants), Ohio has no statute granting super-priority; the HOA lien is a general contractual lien recorded as a covenant, subordinate to tax liens and senior mortgages. R.C. 5311.18 — https://codes.ohio.gov/ohio-revised-code/section-5311.18.

  • Super-priority exists: No.
  • Statute: R.C. 5311.18 (condominiums); no equivalent HOA super-priority statute.
  • Survives tax sale: [needs_verification — R.C. 5311.18 does not expressly address tax-sale survival; general rule in Ohio is that tax foreclosure extinguishes junior liens per R.C. 5721.19(F)(2); condo lien subordinate to tax lien would likely be extinguished.]
  • Survives mortgage foreclosure: No super-priority; the association lien is junior to a first mortgage of record (R.C. 5311.18).

CERCLA / Environmental Liens

Under CERCLA, the federal government may impose a “super-lien” on contaminated property for remediation costs, which enjoys priority over other liens from the time EPA incurs costs (42 U.S.C. § 9607(l)). Ohio has a state-level environmental remediation statute, but no Ohio-specific super-lien statute that grants state environmental liens priority over all other liens has been confirmed from primary sources retrieved. [needs_verification — confirm whether Ohio EPA has a statutory super-lien for RCRA/state superfund sites; verify whether federal CERCLA super-lien survives an Ohio tax-foreclosure sale specifically.]

  • Federal CERCLA lien survives tax sale: Almost certainly yes — federal liens require IRS/federal-government notice and the § 7425 framework; a CERCLA lien filed by EPA is an analogous federal lien. [needs_verification — no Ohio case law on CERCLA-lien survival post-tax-sale retrieved.]
  • State superfund super-lien: [needs_verification — no primary source confirming or denying.]
  • Practical note: Purchasers must conduct a Phase I environmental assessment before bidding on industrial or known-contaminated parcels.

Municipal Code / Blight Liens

R.C. 715.261 addresses municipal abatement-cost liens. Key rule for tax sales: when property is sold at a sheriff’s sale or auditor’s sale, the municipality cannot certify abatement costs incurred prior to confirmation of sale against the new owner unless the purchaser is the prior owner, a family member, or a controlled entity. For purchases by unrelated third parties, pre-confirmation abatement costs do not follow the property — they are the personal liability of the prior owner. County land reutilization corporation acquisitions: any lien for costs under R.C. 715.261 incurred before the transfer is extinguished. R.C. 715.261 — https://codes.ohio.gov/ohio-revised-code/section-715.261.

  • Survive tax sale to arm’s-length purchaser: No (pre-confirmation costs extinguished per R.C. 715.261).
  • Exception: Related-party purchasers inherit the lien obligation.
  • Land bank exception: Extinguished upon transfer to a county land reutilization corporation.

Mechanic’s Liens

Ohio mechanic’s liens (R.C. Chapter 1311) are statutory liens that must be perfected by filing with the county recorder. Their priority relative to tax liens and tax-sale titles depends on: (a) whether they were filed before or after the tax lien arose; and (b) whether the contractor received proper notice in the foreclosure proceeding. Tax foreclosure under R.C. 5721.19(F)(2) extinguishes liens of parties served or required to be served in the proceeding. A mechanic’s lienor not served and not on constructive notice through the in-rem publication may retain a claim. [needs_verification — Ohio case law on mechanic’s lien survival through a properly conducted judicial tax foreclosure where lienor was served.]

  • Survive if properly noticed (served) in tax foreclosure: No — extinguished by confirmed sale.
  • Survive if not served: Potentially yes — title defect risk.

Junior Mortgage Exposure

A tax-foreclosure judicial sale under R.C. 5721.19 extinguishes junior mortgages as to parties who were served or required to be served (and published against). A purchaser at a tax-foreclosure sale therefore generally takes free of junior mortgages. However, in the board-of-revision/direct-transfer path (R.C. 323.78), the deed transfers the property “free and clear of all impositions and any other liens,” expressly extinguishing junior liens. [needs_verification — confirm from an Ohio appellate case that BOR-path deeds are in fact free-and-clear of junior mortgages.]

Due Diligence Checklist for Ohio Purchasers

  1. IRS lien search — U.S. Tax Court docket + PACER + county recorder UCC/lien index for federal tax liens filed against the owner; give required 26 U.S.C. § 7425(b) notice if any found.
  2. All federal agency liens — including CERCLA/EPA, SBA, HUD, USDA.
  3. Title search — 40-year root-of-title search (Ohio Marketable Title Act) + 60-year best practice for insured transactions.
  4. Bankruptcy search — PACER search for pending owner bankruptcy (automatic stay would void a post-petition sale).
  5. HOA/condo status — confirm association dues delinquency; though not super-priority in Ohio, unpaid dues are a nuisance post-acquisition.
  6. Municipal code violations / abatement liens — contact municipal code enforcement; per R.C. 715.261, pre-confirmation costs do not transfer to arm’s-length buyers, but active violations create post-acquisition obligations.
  7. Environmental search — Phase I ESA for any industrial, commercial, or known-problem parcel.
  8. Zoning/building-permit status — R.C. 5721.25 requires redemption only if the owner demonstrates compliance with zoning, land-use, building, health, and safety codes (note: same code-compliance requirement applies in redemption context and signals active enforcement environment).
  9. Delinquent-taxes affidavit — R.C. 5721.19(J) requires the purchaser to affirm no delinquent taxes owed in the county on other properties (false statement = falsification offense).

10b. Purchaser Obligations During Redemption Period

Must the Purchaser Pay Subsequent Taxes?

For the tax-certificate path, R.C. 5721.37 and 5721.38 contemplate that the certificate holder may (but is not expressly required to) purchase subsequent tax certificates on the same parcel. If the certificate holder initiates foreclosure, R.C. 5721.37(B) requires payment of “taxes, assessments, penalties, interest, and charges assessed against the parcel that are not covered by a tax certificate” at the time of filing. There is no Ohio statute expressly mandating that a certificate holder pay subsequent taxes during the redemption period as a condition of keeping the certificate alive, but failure to do so risks the parcel falling back into delinquency and creating competing priority issues. [needs_verification — confirm whether failure to pay subsequent taxes during the certificate redemption period voids or impairs the certificate holder’s foreclosure right under Ohio case law.]

For the judicial-foreclosure / forfeited-land path, the purchaser at a sheriff’s sale acquires equitable ownership at the fall of the hammer and is responsible for taxes accruing from that point. [needs_verification — confirm from primary source that Ohio sheriff’s-sale purchaser bears responsibility for post-sale taxes during the confirmation gap.]

Must the Purchaser Send Notice to the Owner Before Expiration?

R.C. 5721.43 imposes a contact restriction on tax-certificate holders: no contact with the property owner to encourage or demand payment is permitted within one month after certificate purchase. No Ohio statute retrieved expressly requires the certificate holder to send a certified-letter notice to the owner advising that the redemption period is about to expire. [needs_verification — confirm whether any Ohio statute or court rule requires pre-expiration notice from the certificate holder to the owner; check R.C. 5721.38 and 5721.43 in full.]

Owner Occupancy Right During Redemption

During the period between a sheriff’s sale and confirmation of sale, the former owner retains the right to remain in possession and exercise the equity of redemption (R.C. 2329.33, 5721.25). The purchaser does not acquire possessory rights until after confirmation and deed delivery. The purchaser may not enter or disturb possession before confirmation. After confirmation, the purchaser may seek a writ of possession or commence an eviction action in the municipal or county court.

Costs Collectible Upon Redemption

If the owner (or other entitled person) redeems, the redemption price under each path is:

  • Certificate path (R.C. 5721.38): All certificate redemption prices + (after foreclosure initiation) 18%/yr interest on the certificate purchase price + prosecuting attorney’s fee + 18%/yr interest on attorney’s fee + any reasonable attorney’s fees + all other costs and fees of the proceeding allocable to the parcel.

  • Judicial foreclosure path (R.C. 5721.25): All delinquent taxes, assessments, penalties, interest, charges then due and unpaid, plus all costs of any proceeding instituted.

  • Mortgage foreclosure path (R.C. 2329.33): Full judgment or decree amount + all costs including poundage + 8%/yr interest on purchase price from sale date to deposit.

  • Documented improvements: No Ohio statute expressly allows a certificate holder or purchaser to add the cost of improvements made during the redemption period to the redemption price. [needs_verification.]

  • Bid plus interest: Yes (certificate path — certificate rate or 18% after foreclosure filing; mortgage path — 8%/yr on purchase price).

  • Subsequent taxes: Yes, if paid by the certificate holder (included in the redemption price under R.C. 5721.38 at the foreclosure-filing step).

  • Documented improvements: [needs_verification — no primary source confirming.]

  • Citation: R.C. 5721.38 — https://codes.ohio.gov/ohio-revised-code/section-5721.38 ; R.C. 5721.25 — https://codes.ohio.gov/ohio-revised-code/section-5721.25 ; R.C. 2329.33 — https://codes.ohio.gov/ohio-revised-code/section-2329.33

Property Maintenance Obligations

Ohio law does not impose an express statutory maintenance obligation on a tax-certificate holder during the redemption period. However, R.C. 715.261 (municipal abatement) creates municipal authority to abate nuisances; although pre-confirmation abatement costs do not follow the property to an arm’s-length purchaser, the certificate holder’s passivity does not create affirmative liability during the pre-confirmation period. Active nuisance conditions (junk, fire hazards) could trigger municipal enforcement against the owner of record (which remains the prior owner until confirmation/deed delivery). [needs_verification — confirm from Ohio case law whether a certificate holder or post-sale-pre-confirmation purchaser can face nuisance liability under Ohio law.]

11b. Restrictions & Special Rules

Entity Purchase Restrictions

Ohio imposes no general natural-persons-only restriction on purchasing tax certificates or bidding at tax-foreclosure sales. LLCs, corporations, trusts, and other entities may purchase. Foreign entities (organized outside Ohio) may purchase provided they comply with Ohio Secretary of State registration requirements for doing business in Ohio. R.C. 5721.32 requires a bidder registration form with a taxpayer identification number and a $500 refundable registration deposit — no entity-type prohibition. R.C. 5721.32 — https://codes.ohio.gov/ohio-revised-code/section-5721.32.

Insider / Related-Party Prohibition

R.C. 5721.19(D) prohibits a tax-foreclosure sale from being confirmed at below the statutory-minimum price where the highest bidder is the owner of record immediately before the foreclosure judgment or a member of a connected class, defined to include:

  • The owner’s spouse (if residing in the same household), children;
  • Persons holding power of attorney from the owner;
  • Sole proprietorships owned by the owner or family;
  • Partnerships, trusts, corporations, or associations where the owner or family controls more than 50%.

Enforcement: If the county auditor discovers within three years that a connected-party purchased at below-minimum price, the auditor must certify the difference as additional taxes against the parcel. The prior owner/insider is not outright prohibited from bidding at the market price, but they cannot benefit from a below-minimum sale. R.C. 5721.19 — https://codes.ohio.gov/ohio-revised-code/section-5721.19.

Additionally, R.C. 5721.19(J) requires all purchasers to submit a sworn delinquent-tax affidavit confirming they (and any pass-through entity in which they hold 10%+) owe no delinquent taxes on other parcels in the county. A knowing false statement constitutes the offense of falsification. R.C. 5721.19 — https://codes.ohio.gov/ohio-revised-code/section-5721.19.

Tax-certificate purchases additionally prohibit: certificates may not be sold to (or transferred to) the owner of the certificate parcel or any corporation, partnership, or association in which that owner has an interest (R.C. 5721.32, 5721.36). R.C. 5721.36 — https://codes.ohio.gov/ohio-revised-code/section-5721.36.

Right of First Refusal / Priority Transfer

Ohio does not have a general statutory ROFR for municipalities or nonprofit CDCs at tax-certificate sales or standard tax-foreclosure sales. However, the board-of-revision / abandoned-land path (R.C. 323.78) creates a de facto priority: when an eligible receiving entity (municipality, township, county, school district, community development organization, or county land reutilization corporation) requests title, the court must order direct transfer to that entity — bypassing any competitive sale. This is not technically a “match window” ROFR but is functionally equivalent: the eligible entity gets the property for the cost of back taxes and costs, ahead of any private buyer, on request. R.C. 323.78 — https://codes.ohio.gov/ohio-revised-code/section-323.78 ; R.C. 323.65 — https://codes.ohio.gov/ohio-revised-code/section-323.65.

  • Municipalities/townships: Yes (R.C. 323.78 priority-transfer, not a traditional ROFR).
  • CDCs/nonprofits: Yes, if they meet the R.C. 323.65 criteria (nonprofit, Ohio-organized, 2+ years good standing, authorized by local government).
  • Land banks: Yes (R.C. 323.78, R.C. 5723.04 for forfeited land).
  • Match window: Not applicable — direct-transfer request eliminates the competitive sale, not a match-within-X-days ROFR.
  • Citation: R.C. 323.78 — https://codes.ohio.gov/ohio-revised-code/section-323.78

Land Bank Program

Ohio has a robust county land reutilization corporation (CLRC) program, colloquially called “land banks,” organized under R.C. Chapter 1724. As of 2026, there are CLRCs in most of Ohio’s 88 counties, with the Cuyahoga County Land Reutilization Corporation (CCLRC) being the largest and most active in the country. CLRCs may: acquire tax certificates at auction or by negotiated sale; accept assignments of mortgages; purchase tax-delinquent property; and receive property by direct transfer from auditors (forfeited land, R.C. 5723.04) or courts (R.C. 323.78). CLRCs hold properties for remediation and resale, and are exempt from the delinquent-tax-affidavit requirement. When a CLRC later resells a property acquired through the BOR/direct-transfer path, surplus proceeds exceeding taxes/costs must be paid to the county treasurer within 45 days (R.C. 323.78(D)).

  • Exists: Yes, in virtually all 88 counties.
  • Name: County Land Reutilization Corporation (CLRC) — also called “county land bank.”
  • Statute: R.C. Chapter 1724 — https://codes.ohio.gov/ohio-revised-code/chapter-1724
  • Receives unsold properties: Yes — from auditor’s forfeited-land list (R.C. 5723.04) and by court direct-transfer (R.C. 323.78).
  • Operational notes: CCLRC (Cuyahoga) pioneered the model; the Ohio Land Bank Association supports all 88-county programs. Land banks may transfer cleaned-up parcels to CDOs, nonprofits, or developers.

Deficiency Judgment Rules

  • Post-tax-sale: Ohio does permit a deficiency judgment after a tax foreclosure/sale. R.C. 5721.192 expressly authorizes courts to enter a deficiency judgment against the former owner when sale proceeds (under R.C. 5721.19 or R.C. 5723.06) are insufficient to pay in full the taxes, assessments, charges, penalties, interest, and costs. The court must: (1) notify the county board of revision, which has 30 days to make a recommendation; (2) notify the defendant by ordinary mail at least 30 days after board notification; (3) give the defendant 10 days to file a motion protesting the judgment. The court may consider whether the owner held property “only for speculative purposes, and had the means to pay, but purposely did not pay,” purposely failed to pay despite having means, or other circumstances making a judgment inequitable. The deficiency judgment recovers only unpaid taxes, assessments, foreclosure costs, and receiver-related liens — not a general-judgment claim on contractual debt. R.C. 5721.192 — https://codes.ohio.gov/ohio-revised-code/section-5721.192. Forfeited-land-sale deficiencies follow the same procedure via R.C. 5723.18 — https://codes.ohio.gov/ohio-revised-code/section-5723.18. (NOTE — Previous text on this page stated Ohio does NOT permit post-tax-sale deficiency judgments; that was incorrect. R.C. 5721.192 directly contradicts that claim.)
  • Post-mortgage-foreclosure: Permitted, but strictly limited. A deficiency judgment on a mortgage secured by a 1–2 family dwelling used as a home becomes unenforceable as to any deficiency remaining after two years from the date of confirmation of the judicial sale. The debtor may waive this protection within the two-year period by written instrument filed with the court (R.C. 2329.08). R.C. 2329.08 — https://codes.ohio.gov/ohio-revised-code/section-2329.08.
  • Fair value defense: Ohio has no express “fair value offset” defense of the California/Arizona type for mortgage foreclosure deficiencies. The R.C. 2329.20 two-thirds-of-appraised-value floor at execution sales functions as an indirect protection but is not a statutory fair-value defense. R.C. 2329.20 — https://codes.ohio.gov/ohio-revised-code/section-2329.20.

Anti-Deficiency / One-Action Rule

  • Anti-deficiency statute: Ohio has no general anti-deficiency statute eliminating all deficiency judgments (as Arizona has for purchase-money mortgages). R.C. 2329.08 provides the time-limited protection for 1–2 family residential mortgages (2-year enforcement window post-confirmation), which functions as a partial anti-deficiency rule for that class. R.C. 2329.08 — https://codes.ohio.gov/ohio-revised-code/section-2329.08.
  • One-action rule: Ohio does not have a one-action rule requiring a mortgagee to elect between foreclosure and a personal action on the note before proceeding. A mortgagee may pursue all three available remedies — (1) action on the note (6-year SOL from default/acceleration), (2) foreclosure (8-year SOL from breach), and (3) ejectment (21-year SOL from maturity) — simultaneously or separately. Deutsche Bank Nat’l Trust Co. v. Holden confirms the action on the note and the foreclosure action are separate and distinct. Source: Finney Law Firm analysis of Ohio mortgagee remedies (https://finneylawfirm.com/mortgagee-remedies-and-ohio-statute-of-limitations/); Deutsche Bank Nat’l Trust Co. v. Holden (Ohio Supreme Court).

Local pages

County deep dives: butler-oh, clermont-oh, cuyahoga-oh, delaware-oh, franklin-oh, hamilton-oh, lake-oh, licking-oh, lorain-oh, lucas-oh, mahoning-oh, medina-oh, montgomery-oh, stark-oh, summit-oh, warren-oh Unclaimed funds agency: unclaimed-property-ohio

Who this page is for

▸ For Investors / Operators — Start with §1 (the hybrid system — judicial foreclosure of the state tax lien, redeemable tax-lien certificates with up to 18% interest, and the board-of-revision expedited/forfeited-land paths), §2/2b (redemption runs to confirmation of sale; certificate assignment under R.C. 5721.36 cannot run to the owner or an owner-controlled entity), §5b (path to marketable title — common-pleas quiet title under R.C. 5303.01, the 40-year Marketable Title Act, and 1–5 year insurer seasoning), §7b (liens that survive — federal tax liens preserved by R.C. 5721.19(F)(2), the IRS § 7425 120-day redemption, condo-lien priority under R.C. 5311.18, and R.C. 715.261 abatement costs that do not follow to arm’s-length buyers), and §11b (entity/insider rules, the R.C. 323.78 direct-transfer priority to land banks, and the Tyler exposure on that path).

▸ For Former Owners — Start with §3 (the residue — when a tax-foreclosure sale brings more than the taxes and costs, the surplus belongs to you; the clerk notifies you and the county treasurer holds the funds for three years under R.C. 5721.20 before forfeiture, with a one-year window for forfeited-land excess under R.C. 5723.11), §2 (redemption — paying all delinquent taxes, interest, and costs any time before confirmation of sale), and §5c (grounds, the Civ. R. 65(C) bond, and procedure for an emergency motion to halt a scheduled sheriff’s sale).

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