OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
S.B. 36 Bill Analysis
135th General Assembly
Click here for S.B. 36’s Fiscal Note
Version: As Introduced
Primary Sponsor: Sen. Blessing
Effective Date:
Abby Gerty, LSC Fellow
SUMMARY
 Allows certain persons to bid on residential property containing one to four single-
family units after a foreclosure sale has already taken place if the apparent winner of
the auction does not intend to occupy the property as their primary residence.
 Requires the levying officer to make publicly available certain information about the
auction when the successful bidder was not a person intending to occupy the property
as their primary residence.
 Prohibits the levying officer from returning the writ of execution following a public
auction in which the successful bidder was not a prospective owner-occupant until
certain dates depending on whether post-sale bids or notices of intent to bid are
received from certain persons.
 Requires the levying officer to include information regarding the process of submitting
post-sale bids in the public notice the officer must make prior to a foreclosure sale and
to post the notice on the property.
DETAILED ANALYSIS
Overview
Under Ohio law, when a court orders the sale of real property for failure to pay a debt
(a writ of execution), the property must be sold at a public auction.1 In the case of a sale of
residential property containing one to four single-family units, if the apparent winner of the
auction is not a “prospective owner-occupant,” the bill allows an “eligible bidder” or “eligible
tenant-buyer” (all of which are defined below) to submit a bid within 45 days following the
1 R.C. Chapter 2329.
February 17, 2023
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auction. An eligible tenant-buyer may win by placing a bid equal to the apparent winner’s, while
an eligible bidder may win by placing a bid that exceeds the apparent winner’s.
Prospective owner-occupants
Qualifying as a prospective owner-occupant
Under the bill, a prospective owner-occupant is a natural person who submits an
affidavit to the levying officer (the officer who makes the public sale of the residential property,
including a private selling officer) swearing or affirming all of the following:
 That the person will occupy the property as their primary residence within 60 days of
recording of a deed to the residential property or issuance of an order to transfer the
property’s title to the person;
 That the person will maintain their occupancy for at least one year;
 That the person is not the mortgagor, or the child, spouse, or parent of the mortgagor;
and
 That the person is not acting as the agent of any other person or entity in purchasing the
real property.
An eligible tenant-buyer (see “Eligible tenant-buyers” below) may qualify as a
prospective owner-occupant if the person submits the affidavit.2
When successful bidder is not a prospective owner-occupant
Disclosure of auction results
Under the bill, if the successful bidder at a public sale is not a prospective owner-
occupant, then not later than two calendar days after the date of the sale, the levying officer or
an authorized agent must make available via the website and phone number set forth on the
notice of sale (see “Notice of sale” below) the following information for a period of not less
than 45 days after the date of the sale:
 The date on which the sale took place;
 The amount of the successful bid; and
 An address at which the levying officer can receive documents sent by U.S. mail and by a
method of delivery providing for overnight delivery.
A disruption of the methods of providing this information to allow for reasonable
maintenance or due to a service outage is not to be considered a violation of the bill.3
2 R.C. 2329.313(A)(3), (A)(4), and (B) and 2329.261(C).
3 R.C. 2329.313(F).
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Return of writ of execution
In addition to the above, when the successful bidder is not a prospective owner-
occupant, the bill prohibits the levying officer from returning the writ of execution (following
completion of the officer’s duties described in the writ issued by the court, the officer must sign
and return that writ to the court certifying compliance with the writ) until the earliest of the
following dates:
 Sixteen days after the sale, unless at least one eligible tenant-buyer or eligible bidder
submits, and the levying officer receives, a bid or a nonbinding written notice of intent
to place a bid. To be effective, a written notice of intent to place a bid must be sent to
the levying officer by certified mail, overnight delivery, or other method that allows for
confirmation of the delivery date and must be received by the levying officer not more
than 15 days after the sale.
 The date upon which all eligible tenant-buyers or an eligible bidder is deemed the
successful bidder pursuant to “Eligible tenant-buyers” and “Eligible bidders”
below;
 Forty-six days after the sale.4
If prospective owner-occupant cannot occupy property
The bill provides that a prospective owner-occupant does not commit perjury by
submitting an affidavit if they cannot occupy the property as their primary residence within
60 days of the deed being recorded because an eviction or a writ of possession from the court
that entered the order of sale is needed to obtain possession of the property.5
Eligible tenant-buyers
The bill defines an eligible tenant-buyer as a natural person who, at the time of the sale,
is all of the following:
 Occupying the property as their primary residence;
 Occupying the property under a rental agreement entered into as the result of an arm’s
length transaction with the mortgagor on a date prior to a default on the note secured
by the mortgage that led to the action for judicial sale and foreclosure; and
 Not the mortgagor, or the child, spouse, or parent of the mortgagor.6
Under the bill, eligible tenant-buyers, if any, are deemed to have submitted the winning
bid if both of the following are true:
4 R.C. 2329.313(C).
5 R.C. 2329.313(G).
6 R.C. 2329.313(A)(2).
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 The successful bidder at the sale was not a prospective owner-occupant;
 Not more than 45 days after the date of the sale, the levying officer receives both of the
following from a representative of all eligible tenant-buyers, by certified mail, overnight
delivery, or other method that allows for confirmation of the delivery date:
 A bid in an amount equal to the full amount of the successful bid at the sale, in the
form of cash or a cashier’s check drawn on a state or national bank, a state or
federal credit union, a state or federal savings and loan association, a savings
association, or a savings bank specified and authorized to do business in Ohio;
 An affidavit stating that the persons represented are eligible tenant-buyers and the
facts supporting that statement. The levying officer may reasonably rely on this
affidavit.
The bill requires the levying officer to return all unsuccessful bids from eligible tenant-
buyers to the bidders that submitted them not later than the date the levying officer returns
the writ of execution.7
Eligible bidders
The bill defines an eligible bidder as any of the following:
 A prospective owner-occupant;
 An unincorporated nonprofit, a nonprofit corporation, or a cooperative whose primary
activity is the development and preservation of affordable housing in which an eligible
tenant-buyer or a prospective owner-occupant is a voting member or director;
 An Ohio nonprofit corporation whose primary activity is the development and
preservation of affordable rental housing;
 An Ohio limited partnership in which a general partner is an Ohio nonprofit corporation,
the primary activity of which is the development and preservation of affordable
housing;
 An Ohio limited liability company in which the manager is an Ohio nonprofit
corporation, the primary activity of which is the development and preservation of
affordable rental housing;
 A community improvement corporation or community urban redevelopment
corporation;
7 R.C. 2329.313(D).
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 A public office (any state agency, state institution of higher education, public institution,
political subdivision, or other organized body, office, agency, institution, or entity
established by the laws of Ohio for the exercise of any function of government).8
Under the bill, an eligible bidder is deemed to have submitted the successful bid at the
public sale if, not more than 45 days after the date of the sale, all of the following are true:
 The successful bidder was not a prospective owner-occupant;
 No eligible tenant-buyers are deemed to have submitted the successful bid;
 The levying officer receives both of the following from the eligible bidder, by certified
mail, overnight delivery, or other method that allows for confirmation of the delivery
date:
 A bid in an amount that exceeds the successful bid at the sale and all other bids
submitted by other eligible bidders, in the form of cash or a cashier’s check drawn
on a state or national bank, a state or federal credit union, a state or federal savings
and loan association, a savings association, or a savings bank and authorized to do
business in Ohio;
 An affidavit stating that the bidder is an eligible bidder and the facts supporting that
statement. The levying officer may reasonably rely on this affidavit.
The levying officer is required to return all unsuccessful bids from eligible bidders to the
bidders that submitted them not later than the date the levying officer returns the writ of
execution.9
Notice of sale
When residential property containing one to four single-family units is sold at public
auction, the bill requires the levying officer to do all of the following:
 Include the following statement, in substantially the following form, in the notice that
continuing law requires the officer to make prior to a foreclosure sale:
NOTICE TO TENANTS AND OTHER ELIGIBLE BIDDERS: You may
have a right to purchase this property after the sale pursuant to
R.C. 2329.313. If you are an “eligible-tenant buyer,” you can
purchase the property if you match the successful bid placed at
the sale. If you are an “eligible bidder,” you may be able to
purchase the property if you exceed the successful bid placed at
the sale. There are three steps to exercising this right of purchase.
8 R.C. 2329.313(A)(1) and (5).
9 R.C. 2329.313(E).
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First, two calendar days after the date of the sale, you can call
[telephone number for information regarding the sale], or visit
this web site [web site address for information regarding the
sale], using the file number assigned to this case [case file
number] to find the date on which the sale was held, the amount
of the successful bid, and the address of the person who
conducted the sale.
Second, you must send a written notice of intent to place a bid so
that the person who conducted the sale receives it not more than
fifteen days after the date of the sale.
Third, you must submit a bid so that the person who conducted
the sale receives it not more than forty-five days after the date of
the sale.
If you think you may qualify as an “eligible tenant-buyer” or
“eligible bidder,” you should consider contacting an attorney or
appropriate real estate professional immediately for advice
regarding this potential right to purchase.
 Post a copy of the notice in a conspicuous place on property to be sold at least three
weeks before the sale, where possible and where not restricted for any reason. The
posting must be on a door of each dwelling unit on the property, but, if that is not
possible or access is restricted, then the notice must be posted in a conspicuous place
on the property. If access is denied because a common entrance to the property is
restricted by a guard gate or similar impediment, the notice may be posted at that guard
gate or impediment.
 Maintain a website and phone number to provide information on applicable properties.
A levying officer must provide this information, and, for completed sales, information
regarding the sale date, amount of the successful bid, and the levying officer’s address,
to be accessible using the file number assigned to the case and listed on the notice. This
information must be made available free of charge and 24 hours a day, seven days a
week.
The bill allows a levying officer to use any website maintained to satisfy any other
provision of the foreclosure sale law, including the official public sheriff sale website
established under that law, to satisfy the bill’s requirements.10
10 R.C. 2329.261(A) and (B) and 2329.27.
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HISTORY
Action Date
Introduced 01-31-23
ANSB0036IN-135/ts
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As Introduced