Effective as of April 6th, 2017, Senate Bill No. 257 was signed into law by the governor of Ohio. It amends Ohio Revised Code (O.R.C.) Section 5301.07.
In Ohio, when a recorded instrument contains certain defects and the recorded instrument has been on record for more than 21 years, Ohio Revised Code Section 5301.07 states that the instrument and the record thereof shall be cured of certain defects and be “effective in all respects as if such instrument had been legally made, executed, and acknowledged.” Those certain defects include, but are not limited to the following:
- The instrument was not properly witnessed
- The instrument contained no certificate of acknowledgement
- The certificate of acknowledgement was defective in any respect
- There is a discrepancy between the person with an interest in the real property not appearing in the granting clause, but signing the real property instrument
O.R.C. Section 5301.07 went into effect in 1961. Senate Bill 257 makes changes for the first time to the statute, which are the following:
- It specifically defines “real property instrument” as a “deed, mortgage, and installment contract, lease, memorandum of trust, power of attorney, or any instrument accepted by the county recorder.” It expands the curative effect beyond instruments of conveyance.
- It reduces the number of years that the real property instrument must be of record from 21 years to four years from the date of recording.
The Curative Statute creates a presumption of validity for real property instruments where the real property instrument was delivered to and accepted by the County Recorder of the County where the real property is located. It is important to note, however, that under the statute, this presumption may be rebutted by clear and convincing evidence of fraud, undue influence, duress, forgery, incompetency, or incapacity.
Read the entire version of Senate Bill 257 located here.
Joanie Zimmer — Team Leader, Title Source National Commercial