An Ohio residential real estate purchase agreement (“Contract for Sale and Purchase of Real Estate”) is a contract which commits a buyer to an offer to purchase real estate, according to specific terms agreed by the buyer and seller. Negotiated specifics include the purchase price, financing method, closing date, and more.
Do Sellers in Ohio Have To Disclose Property Defects?
Ohio does require real estate sellers to disclose any material defects with a property.In most cases, this is through a standardized disclosure form provided from the Department of Commerce by statute.
The seller always has a duty to disclose all material defects covered by the statutory requirement, even when the buyer agrees to take the property “as-is.”
Ohio also exempts the following common transfers, among others, from the standard disclosure form requirement:
- Court-ordered sales and transfers
- Sales by foreclosure or other debt default
- Transfer as part of the execution of a will or estate
- Transfer to a spouse, parent, or child
Required Seller Disclosures in Ohio
Ohio sellers of residential real estate must make the following disclosures, as appropriate, in order for a real estate purchase agreement to be considered legally binding:
- Residential Property Disclosure: Discloses material defects with a property that are known to the seller at the time of sale, and details any potential issues and conditions that may affect the value of the property.
- Lead-Based Paint Disclosure: Any home constructed earlier than 1978 must come with a disclosure upon the transfer of the property which includes any information about the presence of lead on the premises, as well as educational materials that communicate the health risks associated with lead exposure.
Sources
- 1 Ohio Rev. Code § 5302.30(B)(2)
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This section does not apply to any transfer of residential real property that is any of the following:
(a) A transfer pursuant to court order, including, but not limited to, a transfer ordered by a probate court during the administration of a decedent’s estate, a transfer pursuant to a writ of execution, a transfer by a trustee in bankruptcy, a transfer as a result of the exercise of the power of eminent domain, and a transfer that results from a decree for specific performance of a contract or other agreement between persons;
(b) A transfer to a mortgagee by a mortgagor by deed in lieu of foreclosure or in satisfaction of the mortgage debt;
(c) A transfer to a beneficiary of a deed of trust by a trustor in default;
(d) A transfer by a foreclosure sale that follows a default in the satisfaction of an obligation secured by a mortgage;
(e) A transfer by a sale under a power of sale following a default in the satisfaction of an obligation that is secured by a deed of trust or another instrument containing a power of sale;
(f) A transfer by a mortgagee, or a beneficiary under a deed of trust, who has acquired the residential real property at a sale conducted pursuant to a power of sale under a mortgage or a deed of trust or who has acquired the residential real property by a deed in lieu of foreclosure;
(g) A transfer by a fiduciary in the course of the administration of a decedent’s estate, a guardianship, a conservatorship, or a trust;
(h) A transfer from one co-owner to one or more other co-owners;
(i) A transfer made to the transferor’s spouse or to one or more persons in the lineal line of consanguinity of one or more of the transferors;
(j) A transfer between spouses or former spouses as a result of a decree of divorce, dissolution of marriage, annulment, or legal separation or as a result of a property settlement agreement incidental to a decree of divorce, dissolution of marriage, annulment, or legal separation;
(k) A transfer to or from the state, a political subdivision of the state, or another governmental entity;
(l) A transfer that involves newly constructed residential real property that previously has not been inhabited;
(m) A transfer to a transferee who has occupied the property as a personal residence for one or more years immediately prior to the transfer;
(n) A transfer from a transferor who both has not occupied the property as a personal residence within one year immediately prior to the transfer and has acquired the property through inheritance or devise.
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