A real estate investor in Ohio purchases a property at a sheriff's sale following a tax foreclosure. The sale price is $80,000, but the delinquent taxes, penalties, and costs total $55,000, while the property had a first mortgage balance of $120,000. After the sale, what is the status of the mortgage?
Correct Answer
A) The mortgage is extinguished by the tax foreclosure sale, and the buyer receives clear title
In Ohio, a judicial tax foreclosure sale (under ORC Chapter 5721) extinguishes subordinate liens, including mortgages. Property tax liens are superior to mortgage liens, and a completed tax foreclosure sale conveys the property free and clear of the subordinate mortgage. The lender's remedy was to pay the delinquent taxes or participate in the foreclosure proceedings.
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Angela, an Ohio real estate agent, is explaining property taxes to her buyer client. The client asks who is responsible for establishing CAUV values on agricultural land in Ohio. Angela correctly responds that CAUV values are established by:
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A home in Warren County, Ohio sells for $250,000. The state conveyance fee is $1.00 per $1,000 of the sale price. What is the state conveyance fee for this transaction?