Ohio · owner financing
Ohio owner financing, explained.
A plain-English guide to owner financing (also called seller financing) in Ohio — statute, recording, default remedies, interest caps, and where deals actually happen.
Ohio Rev. Code §§ 5313.01–5313.10
Vendor must record the land installment contract in the county recorder's office within 20 days of signing per ORC § 5313.02(C). Recording fees vary by county.
Hybrid. If buyer has paid less than 20% of purchase price or made fewer than 5 years of payments, forfeiture available with 30-day cure notice (§ 5313.05–5313.06). Otherwise, vendor must foreclose like a mortgage (§ 5313.07).
Is owner financing legal in Ohio?
Ohio statutorily recognizes 'land installment contracts' under Chapter 5313 of the Revised Code, with significant buyer protections for residential property.
How do you record a owner financing agreement in Ohio?
Vendor must record the land installment contract in the county recorder's office within 20 days of signing per ORC § 5313.02(C). Recording fees vary by county.
What happens if the buyer defaults?
Hybrid. If buyer has paid less than 20% of purchase price or made fewer than 5 years of payments, forfeiture available with 30-day cure notice (§ 5313.05–5313.06). Otherwise, vendor must foreclose like a mortgage (§ 5313.07).
What is the maximum interest rate?
8% general usury limit (ORC § 1343.01); higher rates permitted for written contracts and for loans by registered lenders.
What disclosures are required?
Statutory contract content required by § 5313.02 including legal description, purchase price, interest rate, payment schedule, encumbrances, and tax/insurance allocations; lead-based paint (federal).
Who's protected — buyer vs. seller
Buyer protections
Mandatory recording; mandatory foreclosure after 20%/5-year threshold; statutory minimum contract terms; right to cure default; annual statement of payments on request.
Seller protections
Forfeiture available pre-threshold with notice and cure; right to retain payments as rent/liquidated damages if forfeiture proper.
Where in the state do these deals happen?
Common in Appalachian southeast Ohio, Cleveland and Dayton inner-ring neighborhoods (lower-priced housing), rural farm parcels.
Ohio cities
Per-city market notes for owner financing buyers and sellers.
Notable case law
Bellman v. American Int'l Group, 113 Ohio St. 3d 323 (2007); Donohoo v. Brannan, 71 Ohio App. 3d 671 (1991).
Looking at a Ohio deal?
Send the parcel and the terms — we'll walk through whether owner financing fits, how to record it, and what the cure period looks like if things go sideways.
Talk to WyattEducational content only. Statute citations are public-record research, not legal advice. Ohio contracts and remedies are fact-specific — consult a licensed Ohio real-estate attorney before signing anything.