Property Abandonment Laws in Ohio

What Counts as Abandonment of Property in Ohio?

Ohio law generally recognizes that the owner of a property has the right to enter upon the property at any time. However, Ohio law also provides that if a property owner effectively abandons his or her property and no longer intends to exercise common control over it, the owner can no longer be said to own the property. Rather, the property will be said to belong to no one and can often be considered abandoned.
Ohio law does not offer a single definition or test for determining whether a property has been abandoned, but instead imposes a duty on the courts to examine the surrounding facts and circumstances to determine whether property has been abandoned. Courts have held that in most cases, abandonment occurs when a party takes affirmative action to terminate ownership of property, such as by placing it in the possession of another party with the intent to never reclaim it . Abandonment of residential property, however, requires more than mere non-occupancy. A residence that is simply not lived in from time to time may still be considered occupied, but rather an abandoned house under Ohio law requires that there be signs of neglect such as cracked windows, overgrown grass, doors and windows boarded up, accumulation of trash or debris on the premises, broken fences or vines, holes or cracks in the walls or foundation, or similar signs of neglect. Some Ohio courts have held that the failure of an owner to maintain his or her property may be sufficient in itself to establish abandonment, but even then has required some evidence showing the property is not being actively used.

The Ohio Process for Determining Property is Abandoned

In Ohio, the process of declaring a property abandoned and eventually foreclosing is not an overnight procedure. Instead, a step-by-step legal process must be followed, including certain notice requirements in the event the owner does not sign off on the deed. Many property owners are under the impression that vacant property means abandonment. This is not always the case. Ohio law requires that an official declaration of abandonment must be made before a property can be foreclosed. Here is an overview of the process involved:
• If a property is encumbered by a mortgage for more than six months and has not been occupied for at least 30 days during the previous six months, the mortgage holder may initiate foreclosure.
• If the mortgage holder has made reasonable efforts to contact the owner without success, a notice of foreclosure must be sent to the last known address of the owner. The property tax office may also have information on how to contact the owner. The mortgage holder must also send a certified letter to the property address.
• If the property remains vacant for at least 30 days after the notice was sent, the foreclosure may begin after advertising and recording it. However, the mortgage holder cannot foreclose if a legitimate occupant is still living there.
• Once the property is foreclosed, the owner can redeem it by paying the delinquent taxes and assessments. Two years after the foreclosure date, the mortgage holder can file a case in court to obtain title to the property.
A property can be deemed as abandoned if the owner fails to pay taxes or assessments for two years, it is a nuisance due to its dilapidated condition and has been vacant the majority of that time. Ohio law does allow property with delinquent taxes and assessments to be subjected to a foreclosure action.

The Ramifications of Abandoned Property for Owners

As you can see from the abundance of laws in Ohio surrounding property abandonment, there can be some serious consequences for owners of the property. When property is left abandoned, under Chapter 169 of the Ohio Revise Code, it can be at risk for forfeiture for non-payment of either property taxes or debts. If the property is residential, it can be condemned and forced into auction.
When you abandon your property, you can also face personal liability for any damage that occurs due to the property being abandoned. For example, if you have a dying tree on your property and you fail to remove the threat, if that tree falls and damages a neighboring home, you could be held liable for the damage. Abandoning your property prevents you from the right to require the neighboring property to maintain their property to protect your own. And even worse, abandoning the property means that you are potentially allowing harmful individuals across the world free access to your home or building. If you have left behind furniture, appliances, or equipment of any kind, you could be opening yourself up to theft or vandalism.
You may think that abandoning your property will help you avoid debts, but in reality, you are only delaying the inevitable, and may actually be worsening the problem. While essentially transferring the abandoned property to a bank, a creditor or the state appears inviting to citizens who are in debt and walking away from the property gives the impression that you are wiping your hands clean of the debts associated with the ownership of that real estate property, it is not true. When the property is transferred to the local government entity or creditor, the debt associated in that property is going to be sold to another company, a debt collector who will be coming after you for the money owed on the property and ensuing fees and charges associated with debt collection. If you owe any money to the government, not only is the debt going to be collected, you can also be hit with possible penalties from the IRS.
Even more dangerous, abandoning your property can have a profoundly negative effect on your credit score. When a creditor takes your property away from you, they no longer have to report regular payments to the credit bureaus. This means that your credit-score can decrease and your credit score stays less than ideal for a long time to come.

Landlord & Tenants’ Rights Under Ohio’s Abandonment Statutes

Understanding Property Abandonment Laws in Ohio
The burden of establishing a property has been abandoned lies with the landlord. In other words, it is up to the landlord to show that he has a good faith belief that premises are abandoned by the tenant and that he is taking necessary steps to determine whether the premises are unoccupied or abandoned. The law sets out a process for the landlord to follow to protect himself from losing rent.
After providing the tenant notice and the tenant is not vacating the property, the landlord will proceed with an application for a court order for possession which end the tenancy or require the tenant to respond to the order to show cause as to why the landlord is not entitled to a judgment for possession. The order is required to comply with Ohio Revised Code §1915.11(B)(1) and § 1915.16 for rent that can be awarded.
Once the landlord establishes a prima facie right to an order for possession and the tenant does not appear and show cause in compliance with the order for possession , Ohio Revised Code § 1915.16 authorizes the court to render judgment for possession. If no substantial and persuasive evidence is produced at the hearing to show that the tenant is not in default in the payment of rent, the court may enter judgment in favor of the landlord.
If the court is presented with evidence that the tenant is not in default or that the tenant has resumed full compliance with the lease, it should dismiss the action for possession. A tenant’s right to possession will be protected even if he is behind on rent payments, even if he has failed to comply with other provisions of the lease and even if his lease was for a definite term.

Recovering Abandoned or Unclaimed Property in Ohio

If a party is able to establish that the subject property has been abandoned, Ohio law provides a means to reclaim possession or title of the abandoned property. Ohio Revised Code Section 2303.11(A) allows a party to file a complaint in an action for possession of property and seek an award of possession under the following circumstances:

1.a. The party was in possession of newer personal property, as defined in O.R.C. Section 2303.11(B);

b. The property became abandoned property; and
c. The party seeking recovery of possession of the property wants to recover the property.

2.a. The party was in possession of other personal property that is not new (i.e., it is used);

b. The property became abandoned property; and
c. The party seeking recovery of possession of the property wants to retain ownership of the property.

3.a. The party was in possession of an entity as its sole owner, shareholder, or member;

b. The property became abandoned property; and
c. The party seeking recovery of possession of the property wants to retain ownership of the property.

4.a. The party was not in possession of the property, but it became abandoned property;

b. In the case of personal property, the party seeking recovery of possession of the property wants to take possession of the property; or
c. In the case of real property, the party seeking recovery of possession of the property wants to establish its ownership over the property.
Note that for a lender or mortgagee to reclaim possession of abandoned real property, if it is not in possession of the property when it files the motion to recover possession, it must file with the motion "an affidavit setting forth the basis upon which the movant is entitled to recovery of possession." Furthermore, as with the claim of a landlord for possession of abandoned personal property, in order for a lender or mortgagee to prevail upon its motion for recovery of possession of abandoned real property, the court must find "that the movant know…that the property is abandoned."
So, although establishing a claim that property has been abandoned is difficult, if the claim has been established, Ohio law provides a streamlined process for a party (lender, mortgagee, landlord or other party) to reclaim possession, or title, of abandoned property.

Avoiding the Problems Associated with Abandoned Property

The best remedy for abandonment is to take measures to prevent it from occurring in the first place. Doing so is beneficial regardless of the fact that the law has an effective procedure for dealing with an abandoned or unoccupied property, since no one desires to be forced to incur the time, trouble, and expense of commencing a foreclosure action. In order to avoid having to commence a foreclosure action to obtain possession of real estate, the owner must first undertake a physical inspection of the property to determine whether it is occupied and/or in compliance with all codes and ordinances. Once the owner of a vacant property determines that a tenant has vacated the property, he or she should take steps to secure the property immediately, if that has not already been done. Failure to secure the property may result in additional liability for any damages accruing as a result of the vacancy, such as trespass, vandalism or the squatting of other parties . In addition, delinquent owners should be advised that the property should be secured by promptly changing the locks. A notice should also be posted on the door of the property which states that the property is in the possession of the landlord/owner and instructs all unauthorized persons to leave the property immediately. The owner should thoroughly clean the property, however, he/she must refrain from throwing away personal property left by an unauthorized party without first obtaining a court order to do so. The owner should also make repairs to the property so that it is in safe and habitable condition. This would also include making any improvements or repairs noted by the local authorities on any code violation notice, if applicable. The owner should not commence a foreclosure proceeding until he has obtained a new certificate of occupancy for the property, and the landlord/owner should make every effort to keep the property in that condition while the foreclosure is pending.