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SB 124 Changes Transfer on Death Deed Statute and modifies changes to the Recording Statute Changes originally effective July 1, 2009

 

Senate Bill 124 was signed by Governor Strickland on December 28, 2009 and took effect immediately.   This bill had two important areas of impact for those in the real estate industry.

 

• Senate Bill 124 changed the Transfer on Death (TOD) designation instrument from a Deed to an Affidavit.  We anticipate the issuance of the proposed form of Affidavit by the Ohio Bar Association Real Estate Law Section, which should be forthcoming.  The new law allows real property owners holding title in survivorship tenancy to execute such an Affidavit creating a Transfer on Death Beneficiary,  and also clarifies the status of a Trustee of a Trust as a Transfer on Death Beneficiary and the dower rights of the spouse of the property owner.

 

• Senate Bill 124 clarified some issues regarding the Recording Statute changes that took effect July 1, 2009. County Recorders are now required to  accept for recording an instrument or document that does not conform to the requirements set forth in the statute and not charge and collect the additional non-conforming recording fees in the event that the following items fall outside the designated margin restrictions:

 

  “…for page numbers, hand-written, typed, or printed initials, bar codes, copyright information, trailing portions of signatures, plat description of any oil and gas well location or drilling unit or lease, or any other incidental information that is not essential to the recording process or to the legal validity of the instrument or document and that may appear in either of the side margins or in the bottom margin. In addition, notary stamps and seals and any signatures and initials that may appear within the instrument or document need not satisfy the font size requirement and no additional fees may be charged or collected by the county recorder for such a nonconformance.”

 

About the Author

Kimberly D. McNally is the General Counsel of Guardian Title and Guaranty Agency, Inc. located in Cleveland, Ohio.  She manages Guardian Title’s Commercial Division and has closed commercial transactions throughout Ohio as well as on a national level and has extensive experience in dealing with every aspect of title examining and escrow.

 

Kim can be reached at 216.898-4948 or at kmcnally@GuardianTitle.com.