Land contracts, also known as Contract for Deed, are a popular form of seller financing in Ohio. It allows the seller to act as the lender, and the buyer makes installment payments to the seller until the contract is paid in full.
One of the questions that arise when contemplating a land contract is whether it needs to be recorded with the county. Recording a land contract is not required in Ohio, but it is recommended.
Recording the land contract ensures that the buyer has legal proof of ownership of the property. If the contract is not recorded, it is not publicly available and can be lost, destroyed, or disputed. Recording the contract makes it official and provides a public record of the transaction.
Furthermore, recording the land contract protects the parties involved. All parties should have a copy of the agreement, but if the contract is lost or damaged, the recorded copy serves as the legal document. The recording also serves as notice to third parties, such as lenders, that the property is subject to a land contract.
In addition, recording the land contract creates a chain of title. A chain of title is a record of the legal ownership of a property and the transfers of ownership over time. It is essential to have a complete and accurate chain of title to sell or transfer the property in the future.
To record a land contract in Ohio, the contract must be notarized and submitted to the county recorder`s office where the property is located. The recorder`s office will charge a fee to record the document.
In conclusion, recording a land contract in Ohio is not mandatory but recommended for legal and practical purposes. It ensures a public record of the agreement, creates a chain of title, and provides legal proof of ownership. If you are considering a land contract, it is crucial to consult with a real estate attorney to ensure that you comply with all legal requirements.