LibGuides: Ohio Deeds: Mortgages

Introduction

Can you transfer by deed a house that has a mortgage on it? Most mortgages have a “due on sale” clause. This clause means that whoever gets the home will have to pay the entire balance of the mortgage as soon as it’s transferred. This means the old mortgage has to be paid in full immediately, and the new buyer has to get a new mortgage on the house. Therefore, the mortgage lender must be consulted before making a transfer. Federal law does allow for some exceptions to the "due on sale" clause. Read further on this page for more information. Consulting an attorney is also recommended.

Books

Nolo's Essential Guide to Buying Your First Home by Ilona Bray
Publication Date: 2019
Available from the Franklin County Law Library's website https://lawlibrary.franklincountyohio.gov/, under Self-Help Resources
Mortgage Lending by Andrew Pizor
Call Number: KF 695 .P59
Publication Date: 2019
Also available from the Franklin County Law Library's website https://lawlibrary.franklincountyohio.gov/, under Self-Help Resources.
Real Estate Financing by Brook Boyd
Call Number: KF 695 .B68
Publication Date: 2017
Only available at https://lawlibrary.franklincountyohio.gov/ as an ebook for Central Ohio Attorneys who have a library card with the Franklin County Law Library

Federal Law

12 U.S. Code § 1701j–3
No state may prohibit a lender from employing or enforcing a due-on-sale clause.
12 U.S. Code § 1701j–3
A lender may not exercise its option pursuant to a due-on-sale clause upon 1) a transfer where the spouse or children of the borrower become an owner of the property, 2) to an inter vivos trust in which the borrower is and remains a beneficiary, and which does not relate to a transfer of rights of occupancy in the property, 3) a transfer resulting from a decree of dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property.

Ohio Laws

Oh. Rev. Code Sec. 5302.12
Mortgage form
Oh. Rev. Code Sec. 5302.13
Mortgage covenants meaning and effect
Oh. Rev. Code Sec. 5302.14
Statutory condition meaning and effect
Oh. Rev. Code Sec. 5302.15
A lender may record a master mortgage form in any county.
Oh. Rev. Code Sec. 5302.16
The lender’s mortgages may then refer to the master mortgage form rather than having to include all of the provisions of the mortgage in each individual mortgage to the text of the note “Any part or all of a master mortgage form incorporated by reference pursuant to this section in a mortgage of real property is a part of such mortgage the same as if fully rewritten therein, and need not be recorded with such mortgage to be effective.
Oh. Rev. Code Sec. 5301.34
Release of mortgage on certificate of mortgagee or assignee
Oh. Rev. Code Sec. 5301.35
Waiver of priority of mortgages
Oh. Rev. Code Sec. 5301.233
In addition to any other debt or obligation, a mortgage may secure unpaid balances of advances made, with respect to the mortgaged premises, for the payment of taxes, assessments, insurance premiums, or costs incurred for the protection of the mortgaged premises, if such mortgage states that it shall secure such unpaid balances.

Ohio Deeds: Mortgages

Introduction

Books

Federal Law

Ohio Laws

Links

Forms