Land Contracts will be tricky if H.B. 103 passes!
Land Installment Contracts: H.B. 103- Pending
This bill was introduced on February 26, 2019 and is pending in the House Civil Justice Committee. There have been 2 proponent hearings and the bill is backed by Policy Matters Ohio, Ohio Poverty Law Center, Youngstown Neighborhood Development Corporation and Legal Aid Society of Southwest Ohio.
Bill is opposed by OSBA. Not sure who other opponents will be as hearing for opponents hasn’t been scheduled.
This bill includes substantial revisions to Ohio’s Land Installment Contract law, including:
(1) The requirement in R.C. 5313.02 that every land installment contract must have a notice that states: ▪ The vendor is responsible for: (a) property taxes, assessments, and other charges against the property from the date of contract; (b) the payment of homeowner’s insurance premiums; (c) all repairs and maintenance on the property. ▪ The vendee has a cause of action against the vendor pursuant to R.C. 5313.04 (see below) if vendor doesn’t comply with the statute. ▪ The vendor shall not hold any mortgage on the property. ▪ That the vendor will provide homeowners insurance and the extent of the insurance and to whom it is payable.
(2) The requirement in R.C. 5313.021 that a vendor pay off any liens on the property subject to a land installment contract, prior to executing the contract, and a prohibition against the vendor holding or placing a mortgage on the property while the contract is in effect.
(3) The requirement in R.C. 5313.021 that a vendor comply with any applicable building codes and make all repairs necessary to keep the premises in a “fit and habitable condition.” Vendor is further required to contact the local building department prior to entering into a contract and obtain verification that the property is in compliance with the building code.
(4) A private cause of action for a vendee pursuant to R.C. 5313.04 against a vendor for failing to comply with Chapter 5313. Statutory damages include monetary damages that include any of the following: 2% of the principal amount of the contract debt; equity in the property; return of all moneys paid by the vendee; and court costs.