What is an Affidavit Of Title in the State of Ohio?

Post author By Matthew Schwartz
Post date March 17, 2022
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What is an Affidavit Of Title in the State of Ohio?

March 17, 2022

Matthew A. Schwartz

Ohio Real Estate Attorney

An affidavit of title is a legal document provided by the seller of a piece of property that explicitly states the status of any potential legal issues with regard to the property being sold or the seller of the property.

An affidavit is a sworn statement of fact specifying the seller of a property holds the title to the property and acts as proof that the seller of the property in fact owns the property. An Affidavit of Title also includes an attestation from the Seller that any other facts about the property are correct and is notarized by an official notary public.

What Property or Seller Details Could an Affidavit of Title include?

An Affidavit of Title can include that there are no contractor liens on the property, that the seller is not in a legal proceeding that could attach to the property or that the seller is delinquent in taxes related to the property. Other details may include information from a site survey that stipulates issues with the zoning of the property or boundaries of the property. The Affidavit of Title is there to protect the buyer from any errors or misrepresentation of the property or the seller from the seller.

Contents of an Affidavit of Title in Ohio

The basic content of an Affidavit of Title include personal details about the seller like name and current address. Other statements include:

The seller is the owner of record for the property being sold to the buyer;
The seller is not simultaneously selling the property being sold to any other party;
There are no liens from lenders, contractors or other parties on the property being sold;
There are no outstanding assessments for the property being sold or assessments outstanding against the property.
The seller is not in bankruptcy proceedings or is filing bankruptcy proceedings that may attach to the property being sold.

Other Things Covered by an Affidavit of Title in Ohio

A mortgage lien is still on the property as a method to identify what liens are on the property being sold;
There are easements on the property from a prior survey or an easement may need to be done with a new survey of the property

Key Components of an Affidavit of Title

An Affidavit of Title is a Legal, notarized document that requires the seller to disclose any legal issues regarding the property being sold and the sellers personal legal status.
The Affidavit of Title protects the BUYER from legal issues surrounding the seller or the property.
Ohio REQUIRES an Affidavit of Title in real estate transactions.
Ohio title companies REQUIRE an Affidavit of Title before title insurance can be issued.
The Affidavit of Title can be used in legal proceedings if issues arrive after the transaction for the property and the seller failed to disclose the issues.

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What is a General Warranty Deed in Ohio Real Estate Law

The General Warranty Deed provides the highest level of protection for buyers in Ohio real estate transactions. The grantor guarantees that they hold a clear title free of encumbrances and promises to defend the title against future claims, even those predating their ownership.

What is a Special Warranty Deed in Ohio Real Estate Law

A Special Warranty Deed limits the grantor’s guarantees to issues arising only during their period of ownership. It protects the grantee against claims from the grantor’s time but not before.

What is a Fiduciary Deed in Ohio Real Estate Law

A Fiduciary Deed is a type of deed used when a property is transferred by a fiduciary, such as an executor, trustee, guardian, or conservator, who is acting on behalf of another party. In Ohio, fiduciaries use this deed to sell or transfer property without making personal warranties about the title.

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The information contained on this website is presented for informational and marketing purposes only and is not to be understood as legal advice. You should consult an attorney for advice respecting your individual needs. The Law Office of Matthew A. Schwartz looks forward to speaking with you about your particular needs. Please note, however, that the mere act of contacting our firm does not create an attorney-client relationship. As a result, you should never send any confidential information to our office until a Representation Agreement has been signed by both you and The Law Office of Matthew A. Schwartz.

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Titles & Deeds

What is a General Warranty Deed in Ohio Real Estate Law

Post author By Matthew Schwartz
Post date June 4, 2026

Book a Free Consultation

614-829-5796

What is a General Warranty Deed in Ohio Real Estate Law

June 4, 2026

Matthew A. Schwartz

Ohio Real Estate Attorney

June 4, 2026

What is General Warranty?

The legal Covenants of a general warranty deed

The General Warranty Deed is the most comprehensive warranty for any deed that removes liability from future property owners for past issues with the property they are buying. The General Warranty ensures that the title is clear and marketable and devoid of defects not otherwise stipulated. The General Warranty even protects the future owner from issues with the property prior to the current owner taking possession. It’s singularly the best Warranty Deed you can get in the State of Ohio.

In a conveyance of real estate, or any interest therein, the words "general warranty covenants" have the full force, meaning, and effect of the following words: "The grantor covenants with the grantee, his heirs, assigns, and successors, that he is lawfully seized in fee simple of the granted premises; that they are free from all encumbrances; that he has good right to sell and convey the same, and that he does warrant and will defend the same to the grantee and his heirs, assigns, and successors, forever, against the lawful claims and demands of all persons."
Ohio Revised Code: Section 5302.06 | General warranty covenants meaning and effect.

Covenant of Seisin

The Covenant of Seisin in a General Warranty is where the grantor for the property promises that they are the legal owner of a property and that they have the legal right to sell the property.

for the buyer

The buyer receives the greatest assurance that they can purchase the property without concern of future liability for defects or issues not disclosed during the sale transaction.

for the seller

The seller must provide proof of ownership, typically a title free and clear of encumbrances, to prove they own the property and have the legal capacity to sell it.

Covenant Against Encumbrances

The Covenant Against Encumbrances asserts that the property has no liens, no claims, no unpaid taxes, no assessments, or encumbrances of any kind unless they are clearly expressed in the deed.

for the buyer

The Buyer no longer needs to be concerned with “surprise” claims before, during, or after the sale of the property and can purchase the property without fear of future claims.

for the seller

The seller must disclose all encumbrances. If any arise in the course of the transaction or post-transaction, the seller may face legal and financial penalties for the failure to disclose.

Covenant of Quiet Enjoyment

The Covenant of Quiet Enjoyment has the seller assert that there will be no disturbances or claims from third parties including claims of assertion of property rights before, during or after the transaction.

for the buyer

The Buyer has guarantees that they can access the property free and clear of interference or prohibition from any third party portending a claim to the property.

for the seller

The seller agrees to protect the buyer from any future claims against the property related to their previous ownership of the property. If a claim emerges and is successful, the seller may have financial liability for damages to the buyer.

Covenant of Further Assurance

The Covenant of Further Assurance asserts the Seller has an obligation to cure any claims, encumbrances, or defects related to the property and not disclosed after the transaction is complete.

for the buyer

The Buyer receives full support from the Seller to correct, clarify, or remedy any defects that arise in the future related to the title from the period of their ownership that was not disclosed prior to closing.

for the seller

The seller retains the obligation to provide documentation to refute future claims, encumbrances or disturbances even after the transaction closes.

Warranty Forever

The General Warranty has a forever Warranty that the seller will defend the title against all claims and compensate the buyer for any losses due to title defects.

for the buyer

The Buyer is indemnified from claims to ensure their ownership is secure and clear. In Ohio, there is a statute of limitations that the claim must be filed within 4 years from the date of the issue arising.

for the seller

The Seller assumes an indefinite liability for title issues including title issues that predate their ownership of the property, including covering legal fees, settlements or even property loss.

General Warranty Deed Summary

Legal Component	Definition	Buyer’s Benefit	Seller’s Obligation
Covenant of Seisin	Guarantees that the grantor owns the property and has the legal right to sell.	Assures the buyer that the seller has clear ownership and authority to transfer the property.	Must provide proof of ownership. Seller could be held liable if ownership is successfully challenged.
Covenant Against Encumbrances	Ensures the property is free of liens, unpaid taxes, or other undisclosed encumbrances.	Protects the buyer from inheriting financial obligations or usage restrictions.	Must disclose all known encumbrances. Failure to do so may result in legal penalties and financial liability.
Covenant of Quiet Enjoyment	Promises the buyer will not face disturbances or ownership claims from third parties.	Guarantees uninterrupted use and enjoyment of the property.	Must defend the buyer against any future claims on the property.
Covenant of Further Assurance	Requires the seller to perform additional actions to correct title defects after sale.	Provides ongoing support to resolve title issues, ensuring a clear title.	Seller may need to take legal or administrative steps to address title defects post-sale.
Warranty Forever	Seller guarantees to defend the title and compensate for any future losses.	Offers long-term security that ownership is protected against claims, even predating the seller’s ownership.	Seller assumes indefinite liability for title issues, including legal fees or settlements for valid claims.

Frequently Asked Questions

What Makes a General Warranty Deed unique in Ohio Real Estate?

A General Warranty Deed gives the buyer full confidence to acquire a property and the seller with a long term liability if they have failed to disclose encumbrances, claims or defects during the deed transfer process.

Is the General Warranty Deed common in Ohio Real Estate?

The General Warranty Deed tends to appear in high-value property transactions and from buyers who seek maximum protection when buying a property.

Can a General Warranty Deed be Challenged?

A General Warranty deed can be challenged in court. The grantor will be called to defend the deed and cover any legal expenses associated with the claims.

Is a General Warranty Deed Required in Ohio?

No. A General Warranty Deed is not required in the State of Ohio. It is often used unless a property is undergoing substantial renovation or has been recently purchased and flipped where a General Warranty Deed might be harder to get.

Is the General Warranty Deed really forever in Ohio?

Yes. The General Warranty Deed is an on-going liability for the seller for undisclosed claims, encumbrances, and issues with a property.

The General Warranty Deed is the most common deed type in the State of Ohio. It requires a seller to perform due diligence on the property being sold and disclose anomalies, potential third-party claims to the title, and any liens or other claims against the property at the time of sale. The Seller may be asked to cure those issues before a sale moves forward. The purpose of the General Warranty Deed is to protect the buyer as much as possible when purchase real estate property in Ohio.

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What is a Quitclaim Deed in Ohio Real Estate Law

A quitclaim deed is a legal document used to transfer any ownership interest the grantor (person transferring the property) may have in a property to a grantee (person receiving the property). Unlike other types of deeds, a quitclaim deed provides no warranties or guarantees about the property’s title. It only conveys the grantor’s current interest, if any, and does not promise that the grantor actually owns the property or that the title is clear of liens or encumbrances.

6 Types of Deeds In Ohio for Transferring Real Estate

A Deed is a legal document created for the conveyance of title to real estate in Ohio. Understanding the different types of deeds available can empower buyers, sellers, and real estate professionals to navigate transactions with confidence.

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Titles & Deeds

What is a Special Warranty Deed in Ohio Real Estate Law

Post author By Matthew Schwartz
Post date June 4, 2026

Book a Free Consultation

614-829-5796

What is a Special Warranty Deed in Ohio Real Estate Law

June 4, 2026

Matthew A. Schwartz

Ohio Real Estate Attorney

June 4, 2026

A Special Warranty Deed limits the grantor's guarantees to issues arising only during their period of ownership. It protects the grantee against claims from the grantor's time but not before.

What is a Warranty?

In legal terms, a warranty is an assurance or guarantee provided by one party to another about the condition or quality of a product, property, or title. For real estate transactions, warranties focus on the seller’s assurance of the property’s title and freedom from claims.

What is a Special Warranty Deed in Ohio Real Estate Law?

Special warranty deeds typically allow for recovery for a defect in title “if the defect arises because of the acts of the grantor.”

A Special Warranty Deed in Ohio does not include a warranty for omissions of facts related to the deed. The grantor in a Special Warranty Deed only guarantees that they did not create title defects or encumbrances during their period of ownership. However, they do not warrant against:

Omissions or undisclosed issues from before their ownership.
Errors or missing facts in previous deeds in the chain of title.
Unknown claims or encumbrances that may exist from prior owners.

What This Means for the Buyer:

If an omission in a previous deed (before the grantor’s ownership) affects the title, the grantor in a Special Warranty Deed is not liable.
Buyers should conduct a title search and obtain title insurance to protect themselves from unknown title defects.

Special Warranty vs General Warranty Deeds

Feature	Special Warranty Deed	General Warranty Deed
Title Guarantee	Covers only the period when the grantor owned the property	Covers the entire history of the property, even before the grantor owned it
Protection for Buyer	Limited protection – only guarantees title was clear during the grantor’s ownership	Maximum protection – guarantees title is free of defects from past and present
Common Uses	Commercial transactions, foreclosures, estate sales, and property transfers by corporations	Residential real estate sales, where the buyer expects full title protection
Risk for Buyer	Higher risk – potential unknown issues from previous owners	Lower risk – the grantor is responsible for any title defects
Liability of Grantor	Only responsible for defects that arose during their ownership	Responsible for any title issues, even those that existed before their ownership
Need for Title Insurance?	Strongly recommended due to limited warranty	Recommended but less critical because of broad guarantees
Typical Grantor	Banks, trustees, estates, corporations, or commercial sellers	Individual homeowners selling residential properties
Covenants Included	Limited covenants – guarantees against encumbrances caused by the grantor only	Full covenants – guarantees no encumbrances or defects in the title, past or present

Frequently Asked Questions on Special Warranty Deeds

What is the difference between a Special Warranty Deed and a General Warranty Deed?

A General Warranty Deed offers broader protections, guaranteeing the title against all defects, even those that arose before the grantor’s ownership. A Special Warranty Deed, on the other hand, only guarantees the title against issues that occurred during the grantor’s ownership of the property.

What does a Special Warranty Deed cover?

A Special Warranty Deed typically covers:

That the grantor legally owns the property.
That the property has not been encumbered (e.g., liens, claims, or judgments) by the grantor during their period of ownership. It does not protect the grantee from title issues that occurred before the grantor owned the property.

When is a Special Warranty Deed used?

A Special Warranty Deed is commonly used in:

Commercial real estate transactions: Where buyers conduct thorough title research and accept limited warranties.
Foreclosures or sales by trustees: Where sellers only warrant their actions.
Property transfers between parties with limited obligations: For example, a corporate seller or executor of an estate.

What are the risks of a Special Warranty Deed for the buyer?

The risks include:

Pre-existing title issues: The deed does not protect against problems arising before the grantor’s ownership.
Encumbrances not disclosed by the grantor: If the grantor fails to mention an issue during their ownership, it might not be covered.

Buyers should conduct a thorough title search and consider obtaining title insurance for additional protection.

Does a Special Warranty Deed guarantee clear title?

No, a Special Warranty Deed does not guarantee clear title for the property’s entire history. It only assures the title was clear during the grantor’s ownership.

Can a Special Warranty Deed be contested?

Yes, a Special Warranty Deed can be contested if:

The grantor misrepresents their ownership or actions.
There are encumbrances caused by the grantor that the deed failed to disclose.

Who typically prepares a Special Warranty Deed in Ohio?

A Special Warranty Deed is usually prepared by:

The grantor’s attorney.
A title company involved in the transaction.

In Ohio, the document must comply with state-specific legal requirements to be valid.

Can a Special Warranty Deed transfer full ownership rights?

Yes, the deed transfers the full ownership rights the grantor holds. However, the warranties provided about the title’s quality and freedom from defects are limited to the grantor’s ownership period.

Thinking about Selling with a Special Warranty?

Here are some instances where a Special Warranty might work for your property:

Restoration Projects – if you are in the middle of renovation and want to sell the property, a Special Warranty could be appropriate to mitigate any errors or omissions from previous owners of an older home.
Estate Sales & Inherited Properties – When an executor or heir sells a property from an estate, they may not have full knowledge of the property’s title history. A Special Warranty Deed limits their liability to only their period of ownership, protecting them from unknown past issues.
Foreclosure or Bank-Owned (REO) Properties – If a property is sold after foreclosure, the lender or bank (as the grantor) will typically use a Special Warranty Deed. The lender only guarantees that they did not create new title issues after repossessing the home but does not cover problems from the previous owner.
Divorce & Property Settlements – If a home is transferred as part of a divorce settlement, one spouse may use a Special Warranty Deed to release their ownership without making full title guarantees. This ensures they are not liable for unknown issues with the property before or after their ownership.
Trust or LLC Transfers – When a property is moved into or out of a trust or LLC, the entity may use an Special Warranty Deed rather than a General Warranty Deed. This is common when transferring ownership between family members or business entities.
Deed Corrections or Title Adjustments – If a property owner needs to correct a clerical mistake in the title or adjust ownership (e.g., adding/removing a name), a Special Warranty Deed might be used. This ensures they are only liable for the time they held the corrected title.
Auction Sales or “As-Is” Property Sales – Properties sold at real estate auctions often come with an SWD, as sellers (banks, investors, or government entities) do not want full liability for the title’s history. Buyers assume more risk but can mitigate it with title insurance.

Is there a Cost Difference Between a Special Warranty Deed and a General Warranty Deed?

There are multiple ways in which a Special Warranty Deed and a General Warranty Deed might impact a Seller. In particular, a General Warranty Deed is for the lifetime of the Seller, which can lead to costs down the road and/or unforeseen expenses.

When filing the deeds, there are other various factors to consider, including legal fees, title insurance, and potential risks associated with the transaction.

Cost Factor	Special Warranty Deed (SWD)	General Warranty Deed (GWD)
Legal Fees	Lower – fewer guarantees, less legal liability	Higher – requires a full title guarantee and additional legal work
Title Search Costs	Recommended but not always included	Typically required to confirm full title history
Title Insurance	Strongly recommended (may cost more due to higher risk)	Recommended, but usually costs less due to full warranty
Seller’s Risk & Liability	Lower – seller is only responsible for their ownership period	Higher – seller is liable for all past title defects
Negotiation Leverage	Less favorable for buyers, may require concessions	More favorable for buyers, increasing the property’s marketability
Typical Use Case	Estate sales, foreclosures, commercial deals	Traditional home sales where buyers want full protection

Sellers may generally prefer Special Warranty Deeds to mitigate future liability associated with the property. The type of deed you use to transfer the property can have long-term ramifications for your personal liability and finances. If you are unclear on which is right when buying or selling a property, you should contact our office for an initial consultation.

What is a Fiduciary Deed in Ohio Real Estate Law

Post author By Matthew Schwartz
Post date August 6, 2025

Book a Free Consultation

614-829-5796

What is a Fiduciary Deed in Ohio Real Estate Law

August 6, 2025

Matthew A. Schwartz

Ohio Real Estate Attorney

August 6, 2025

What is a Fiduciary Deed?

Key Features of a Fiduciary Deed

The fiduciary (seller) acts on behalf of another party, such as an estate, trust, or guardianship.
The deed does not provide warranties about the property’s title, except that the fiduciary is authorized to sell the property.
The fiduciary is not personally liable for any defects in the title before or during their control of the property.

It does not guarantee a clear title beyond the fiduciary’s actions.

How is a Fiduciary Deed Created?

A Fiduciary Deed in Ohio typically includes:

Grantor Information: Identifies the fiduciary and their legal authority e.g. executor of an estate.
Grantee Information: Identifies the buyer or recipient of the property.
Legal Description of Property: Includes a metes and bounds description, lot number, or parcel ID.
Statement of Fiduciary Authority: Specifies the fiduciary’s role and legal authority to transfer the property.
Limited Covenant: The fiduciary guarantees only that they have the right to transfer the property but makes no further warranties.
Execution & Acknowledgment: The fiduciary signs the deed, often before a notary public.
Delivery & Acceptance: The deed is delivered to the buyer, completing the transfer.

A Fiduciary Deed is most often created and filed by an attorney representing the grantor and the grantor’s estate.

What are the Legal Covenants of a Fiduciary Deed in Ohio Real Estate?

Unlike a General Warranty Deed or even a Special Warranty Deed, a Fiduciary Deed typically contains only one legal covenant:

Covenant of Authority – The fiduciary guarantees that they are legally authorized to sell or transfer the property but makes no warranties about past ownership, liens, or encumbrances.

A Fiduciary Deed in Ohio Real Estate DOES NOT INCLUDE these covenants:

No Warranty of Title – The fiduciary does not promise that the title is free from past defects.

No Warranty Against Encumbrances – The fiduciary does not guarantee that the property is free from liens, judgments, or other claims.

A Fiduciary Deed is commonly used in Ohio in situations where a legal representative must transfer real estate on behalf of another party.

Common Use Cases:

Estate Sales: When an executor or administrator sells a deceased person’s property.
Trust Sales: When a trustee transfers property from a trust to a new owner.
Guardianship Sales: When a guardian sells property on behalf of a minor or legally incapacitated person.
Bankruptcy Sales: When a court-appointed trustee sells property as part of bankruptcy proceedings.
Court-Ordered Sales: When a court orders a property sale due to foreclosure or legal settlements.

Fiduciary Deeds vs Special & Warranty Deeds

Types of Deeds In Ohio Real Estate
Feature	Fiduciary	Special Warranty	General Warranty
Title Guarantee	No guarantee	Limited guarantee (only during grantor’s ownership)	Full guarantee (covers all past owners)
Encumbrances Warranty	None	Only for grantor’s ownership period	Covers all encumbrances, past and present
Who Uses It?	Fiduciaries (executors, trustees, guardians)	Commercial sellers, banks, estate representatives	Individual homeowners, traditional home sales
Buyer’s Risk Level	High risk – no title guarantee	Moderate risk – only seller’s period covered	Low risk – full warranty protection
Need for Title Insurance?	Highly recommended	Recommended	Still recommended but lower risk
Typical Sale Type	Estates, trusts, court-ordered sales	Foreclosures, commercial transactions, estate sales	Standard residential transactions

Frequently Asked Questions about Fiduciary Deeds

What makes a Fiduciary Deed different from other deeds?

A Fiduciary Deed only guarantees that the fiduciary has the authority to sell the property. It does not provide any warranty that the title is free of defects or encumbrances.

Does a Fiduciary Deed guarantee a clear title?

No, it does not guarantee a clear title. Buyers should perform a title search and purchase title insurance for protection.

Who can issue a Fiduciary Deed?

Only a legally authorized executor, administrator, trustee, guardian, or court-appointed fiduciary can issue a Fiduciary Deed.

Why is a Fiduciary Deed commonly used in estate sales?

Because the executor of an estate may not know the property’s full history, they avoid liability by issuing a Fiduciary Deed instead of a Warranty Deed.

Can a Fiduciary Deed be challenged in court?

Yes, a Fiduciary Deed can be challenged if:

The fiduciary was not properly authorized to sell the property.
The deed was executed fraudulently or under duress.
There were legal defects in the estate administration process.

Is title insurance required with a Fiduciary Deed?

It’s not legally required but is highly recommended because the deed does not guarantee title clarity.

Can a Fiduciary Deed be converted to a General or Special Warranty Deed?

No, but after a title search and legal confirmation, the buyer may be able to request a new deed with additional warranties.

Are Fiduciary Deeds only used for selling property?

No, they can also be used for transfers without a sale, such as transferring property to an heir or trust beneficiary.

How does Ohio law treat Fiduciary Deeds differently than other states?

Ohio follows strict fiduciary laws, requiring the fiduciary to have court approval or legal authorization before transferring real estate. Some other states may have more relaxed rules.

How Fiduciary Deeds Might Be Different in Ohio Real Estate Law

Court Approval May Be Required – In Ohio, fiduciaries (especially guardians) may need a court order before selling property.
Strict Executor Rules – Ohio has clear laws on how executors and trustees must handle real estate sales from estates.
Ohio Revised Code (ORC) Compliance – Fiduciary Deeds in Ohio must comply with ORC Title 21 & Title 53, which govern probate, trust, and fiduciary transactions.

If you are in need of a Fiduciary Deed, please contact our law office for a free initial consultation.

What is a Quitclaim Deed in Ohio Real Estate Law

Post author By Matthew Schwartz
Post date January 25, 2025

Book a Free Consultation

614-829-5796

What is a Quitclaim Deed in Ohio Real Estate Law

January 25, 2025

Matthew A. Schwartz

Ohio Real Estate Attorney

January 25, 2025

What are Quit Claim Deeds in Ohio Real Estate?

5 Components of Quit Claim Deeds

Like other deeds and affidavits, there are 5 core legal components to a quit claim deed: Statement of Ownership, Legal Description of the Property, Notarization of the Document, Recording & Filing the Document, and No Covenants or Warranties Clause.

In a Quit Claim, a person is surrendering their claim to a property interest and may or may not be able to validate their claim is even viable during the process.

Statement of Ownership Transfer

The Statement of Ownership verifies the grantor’s ownership interest of the property being sold but provide no guarantee on the ownership nor the validity of the title.

Buyer

The Buyer receives whatever interest the seller may have in the property. That interest could be full ownership to none. There is no clear guarantee of the title.

Seller

The Seller is able to avoid liability on the transfer of the property for any title defects or any additional claims.

No Covenants or Warranties

Typically, a deed receives the opposite, and includes a number of warranties around the validity of the title and any encumbrances that may affect the title.

In a Quit Claim deed the Seller is providing no such warranties that future claims might arise.

Buyer

The Buyer is accepting the property “as is”. Researching the title before closing is important to understand what you are buying.

Seller

The Seller is essentially “washing their hands” of the property and any interest they may think or actually do have in the property.

Legal Description of the Property

The legal description of the deed may include but is not limited to: metes and bounds of the property, lot and block description, parcel number for the land, land use authorizations, the physical address of the property and that of the deed holder. The legal description may include improvements, tax levies and other relevant information to assess the current value of the property.

Buyer

The purpose of the legal description is to provide clarity to the buyer on the condition, status, and geo-location aspects such as taxing authorities and permissible uses (zoning) before buying the property.

Seller

The Seller is essentially “washing their hands” of the property and any interest they may think or actually do have in the property.

legal authorization

In order for a deed to be legally transferred and property sold in the State of Ohio, the deed must be notarized and/or authorized by any of several parties including authorized representatives of the courts and the County Clerks office.

Buyer

The Buyer receives the assurance that the signature on the deed and the intent to sell is valid under State law.

Seller

The Seller grants the assurances they are authorized to sell the property legally under State Law.

recording at county recorder's office

In Ohio, the deed transfer is not in effect until it is filed and publicly listed with the County Recorder in which the property is located.

Buyer

The recording of the sale in the County Recorder’s office protects the Buyer against future disputes by documenting the transfer.

Seller

The listing by the County Recorder formalizes the release of the property for the Seller.

Why Use a Quit Claim Deed?

Use Case	Example Situations	Why Quitclaim is Used
Transfers Between Family Members	– Gifting property to a child or relative. – Adding/removing a spouse after marriage or divorce.	Trust exists between parties, so title guarantees are less critical.
Correcting Title Errors	– Fixing misspelled names. – Updating property boundaries or legal descriptions.	Simple way to resolve errors without needing a warranty deed.
Clearing Title Defects	– Resolving ownership disputes. – Removing a former owner or claims.	Quickly relinquishes ownership to clear “clouds” on the title.
Property Transfers Without Payment	– Gifting property to a trust, charity, or LLC. – Transfers within a business or estate planning.	No financial consideration, so no need for warranties or covenants.
For Sale by Owner	– Private sales where the buyer accepts risks.	Rarely used, as buyers usually demand title guarantees.
Short Sales	– Transferring property during a short sale (selling for less than mortgage balance).	Simplifies transfer for financially complicated properties.
“We Buy Properties” Transactions	– Investors buying distressed properties. – Buyers assuming title and mortgage.	Used for quick, low-cost transfers where buyers accept potential risks like liens or encumbrance

FAQ About Quit Claim Deeds in Ohio Real estate

When is a Quitclaim Deed commonly used?

For family property transfers, resolving title issues, or adding/removing a person from the title.

Does it guarantee clear title?

No, it only transfers the grantor’s interest, which could be none.

Is a title search necessary?

Highly recommended to avoid surprises.

Can it be used for real estate sales?

Rarely, as it provides no buyer protection.

Is it legally binding in Ohio?

Yes, when properly signed, notarized, and recorded.

What are common scenarios for using a Quitclaim Deed?

Transferring property between family members (e.g., parents to children or siblings).
Resolving ownership disputes or title defects (e.g., fixing an error in a prior deed).
Adding or removing a person from a title, such as during a divorce or when adding a spouse after marriage.

Are Quitclaim Deeds used in commercial transactions?

Rarely, as they provide no buyer protection. They may be used in commercial cases only when the buyer explicitly accepts the risks involved.

What if the grantor has no legal interest in the property?

If the grantor has no ownership or legal interest, the deed conveys nothing. The buyer assumes all risk in such cases.

Can a Quitclaim Deed be revoked?

No, once the deed is executed, notarized, and recorded, it is legally binding and cannot be unilaterally revoked by the grantor.

Does a Quitclaim Deed affect mortgages or liens on the property?

No, it does not remove or resolve existing mortgages or liens. The property is transferred subject to these obligations, and they remain the responsibility of the buyer.

Quit Claims are a Rare Use case

While Quit Claims are a legally binding agreement in the State of Ohio for real Estate Law, they are not commonly used for a variety of reasons. Chief among those reasons is the liability fully shifts to the buyer.

There may be uses with For Sale By Owner or maybe a Short Sale but often the lender will require a General Warranty Deed to secure the financing to acquire the property.

If you are considering a Quit Claim for a property in Ohio, contact The Law Office of Matthew Schwartz for a consult on whether or not Quit Claim is the right deed transfer for your property.

6 Types of Deeds In Ohio for Transferring Real Estate

Post author By Matthew Schwartz
Post date January 3, 2025

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6 Types of Deeds In Ohio for Transferring Real Estate

January 3, 2025

Matthew A. Schwartz

Ohio Real Estate Lawyer

January 3, 2025

What are Deeds & Titles?

What is a Deed?

A deed is a legal document that transfers ownership of real estate from one party to the next. There are several types of Deeds in Ohio Real Estate Law including:

General Warranty Deeds
Special Warranty Deeds
Quitclaim Deeds
Fiduciary Deeds
Survivorship Deeds
Transfer on Death Deeds (Transfer on Death Designation in Ohio)

Each deed serves a different purpose when transferring real estate in the State of Ohio. But all deeds have three basic components in common:

Grantor and Grantee Details – who you are, your contact information, and your status with the real estate being transferred.
Legal description of the property – a summary description of the property type, the address, lot number, tax authority, etc.
Signatures of involved parties – these are often notarized to ensure the validity of the signatures.

Deeds are filed with the County Recorder In Ohio based on the county where the property is located, not where the deed is ratified. Deeds are part of the public record to indicate ownership of property as well as liens on property.

What is a Title in Ohio Real Estate?

Whereas a deed transfers ownership of real estate from one party to another, a title represents the legal right to own the property, to use the property, and to modify the property according to the law.

Titles often have a form of insurance related to them including either a lender’s policy or an owner’s policy or both.

Titles are instrumental tools should any disputes on the use of the property occur, and work alongside of the deed if the boundaries of the property come into question, or if a fraudulent deed is filed to try and obtain the property.

Comparing Types of Deeds in Ohio Real Estate

Deed Type	Warranty Level	Best For	Common Uses
General Warranty Deed	Highest	Buyers seeking full protection	Standard real estate purchases
Special Warranty Deed	Limited to grantor period	Transactions where grantor’s ownership is known	Commercial real estate
Quitclaim Deed	None	Transfers within families or resolving disputes	Family transfers, divorces, corrections
Fiduciary Deed	Limited to fiduciary role	Sales by trustees, executors, or guardians	Estate settlements, trust transfers
Survivorship Deed	Rights of survivorship	Joint property owners	Avoiding probate for co-owners

Frequently Asked Questions about Titles & Deeds in Ohio Real Estate

What is the difference between a deed and a title in Ohio Real Estate Law?

A deed transfers ownership of real estate from one party to another, a title ensures the legal ownership rights to a property.

Can I change the type of deed I hold on a property?

Yes. You can change a deed such as a Quitclaim Deed to a Warranty Deed by executing a new deed and clarifying discrepancies in question on the property.

Do I need an attorney to handle deeds in Ohio?

You are not required to use an attorney under Ohio Real Estate Law to execute the transfer of real estate with a deed. Legal representation is there to ensure compliance with Ohio laws, e.g. warranty on the property, and to avoid filing errors that can become costly mistakes.

How are title disputes resolved in Ohio Real Estate law?

There are several paths to resolve title disputes under Ohio Real Estate law including mediation through arbitration, legal action and the use of title insurance to mitigate risks.

What is an Affidavit of Title in Ohio Real Estate?

An Affidavit of Title is used in Ohio Real Estate transactions when a buyer wants assurances that the title is clear of undisclosed claims or other issues. An Affidavit of Title may be required by a lender or title insurer.

Protect your property with titles & deeds

A piece of real estate may be one of the largest purchases you ever make in your life. It may also become one of the single largest assets you own. Ensure that your property is safe and protected with the proper execution and filing of deeds and titles across the State of Ohio.

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What is a Real Estate Short Sale in Ohio?

Short sales are a legal sale of a property when a property owner sells the property for less than the amount owed on the mortgage associated with the property. The buyer of the property is not the lender and the proceeds from the purchase all go to the lender.

How To Protect Yourself with a Home Sale Contingency Clause

A home sale Contingency Clause in a purchase contract protects the potential buyer of a property from carrying two mortgage payments when they own another property that they are attempting to sell.

7 Steps To Conquer the FSBO Escrow Process

The FSBO Escrow Process Can Be Managed in 7 Steps with the Help of Inspectors, Notaries and and Attorney.

Keep In Touch

For Sale By Owner

What is a Real Estate Short Sale in Ohio?

Post author By Matthew Schwartz
Post date August 31, 2022
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What is a Real Estate Short Sale in Ohio?

August 31, 2022

Matthew A. Schwartz

Ohio Real Estate Attorney

What is a Real Estate Short Sale?

Short sales are legal sales of a property when a property owner sells the property for less than the amount owed on the mortgage associated with the property. The buyer of the property is not the lender and the proceeds from the purchase all go to the lender. In the case of a short sale real estate translation, the lender has to decide if they will write off and forgive the remaining balance on the previous mortgage or seek a deficiency judgment in court to get the previous owner to pay all or some lesser portion of the outstanding balance of the mortgage including interest.

When a real estate short sale is conducted, it’s common that these terms for the deficiency judgment or balance forgiveness are in the agreement with the buyer of the property from the owner in default or distress.

5 Key Components in a FSBO Real Estate Short Sale

A real estate short sale is when a property is sold for an amount less than the amount currently owed on the mortgage lien against the property.
The mortgage lender approves any terms of a short real estate sale in the State of Ohio.
In the terms of the agreement for the short sale, the lender determines if the remaining balance is forgiven or if they will seek a deficiency judgment against the property owner.
FSBO Sellers have to disclose if they are delinquent in their mortgage payments or if they are seeking a short sale of the property and will need to secure the permission of the lender to complete the transactions.
FSBO Buyers will want a contingency in their offer to stipulate the sale of the property is contingent upon the short sale approval from the lender.

An Example of a Real Estate Short Sale

A homeowner wants to sell their home for $200,000 and the mortgage balance on the property is $250,000 creating a deficiency of $50,000.

The first part of listing the property includes getting permission from the mortgage lender to agree to the execution of a short sale which is commonly known as a pre-foreclosure sale. The mortgage lender will seek information from the buyer on why the short sale is required and for an FSBO seller that may mean a loss of income, or an inability to care for the property due to injury or age. While a short sale may take several months to approve with a mortgage lender, a short sale is not as detrimental to the credit of a seller as a full-on foreclosure may be.

Once the short sale is approved by the mortgage lender, the homeowner can market the property and receiver offers. In the event that the seller is unable to sell for the price differential agreed to by the mortgage lender, the lender will have final approval on acceptance of the offer and may change the short sale agreement if the deficiency increases.

In the end, a real estate short sale can enable a distressed homeowner to surrender the property to a third party and have the mortgage lender forgive the deficiency between the sale price and the market price. There are many steps in this process and many potential caveats like mortgage lenders not wanting to conduct short sales, requiring property owners to be in default or having the mortgage lender still require some partial form of payment from the deficiency between the mortgage amount and the sale price. Short sales are expensive to undertake, they require a knowledgeable real estate agent or attorney, a legal representative from the lender and may take months to even as long as a year to get to any type of agreement. FSBO may be a method to unload your short sale real estate using an attorney to avoid the real estate commissions and fees and free you from the obligations of your mortgage.

How To Protect Yourself with a Home Sale Contingency Clause

Post author By Matthew Schwartz
Post date August 30, 2022
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How To Protect Yourself with a Home Sale Contingency Clause

August 30, 2022

Matthew A. Schwartz

Ohio Real Estate Attorney

A home sale Contingency Clause in a purchase contract protects the potential buyer of a property from carrying two mortgage payments when they own another property that they are attempting to sell.

Home Sale Contingency Clauses Prevent You from Being Stuck with Two Mortgages.

Protect Your Assets While Buying a Home

A Home Sale Contingency Clause in a purchase contract protects the potential buyer of a property from carrying two mortgage payments when they own another property that they are attempting to sell. In the offer phase, a contingency clause can delay the obligation to close on the property while the buyer’s current property remains on the market. The contingency clause typically provides an expiration date for an offer based on an expected sale of the buyer’s current property. In the event the buyer’s current property fails to sell within the designated time period, the offer to the seller is void. If the buyer’s home sells prior to the expiry date, then the ”home sale” contingency has been met, and the transaction moves forward.

3 Key Components of Home Sale Contingency Clauses

Contingency clauses protect buyers selling one home to buy another and would be incorporated into the offer to buy.
If a buyer’s property does not sell by a designated date, the offer is null and void.
A contingency clause for an FSBO seller can provide assurance that your property sells before your offer on another property is binding.

Settlement Contingency Clause

A “settlement contingency” is a clause that enables the Buyer to make the finality and the timing of an offer dependent upon the closing of another property being sold by the Buyer. This would apply only in cases where the Buyer making the contingent offer was already under contract to sell their original property. A settlement contingency typically does not allow a Seller to accept other offers while the Buyer’s property closes or for a set period of time.

Sale and Settlement Contingency Clause

A “sale and settlement contingency” clause is appropriate in cases where the Buyer making the contingent offer is also attempting to sell another property. Since the Buyer has not yet secured an acceptable offer on their other property, sale and settlement contingencies typically permit the Seller to accept offers from other potential buyers . If the Seller receives a suitable offer from a different buyer, the initial Buyer will typically have the opportunity to waive the contingency and/or otherwise modify their offer in an attempt to maintain first position. sale and settlement contingency including matching or beating the additional buyers offer. If the buyer is unable to remove the contingency, the buyer’s offer becomes null and void. Sale and settlement contingencies often come with earnest money that is returned if the buyer cannot execute the clause because their home has not sold.

How Contingencies Help & Hurt FSBO Sellers

Contingency clauses can impede an FSBO Seller in the process to sell your home while you wait for a buyer to settle and close on their property. A few things an FSBO Seller should do before accepting a contingency clause:

Review the buyer property. Is it listed in real estate marketplaces?
Is it listed to sell or are comparable homes in the neighborhood selling faster or slower?
Assess the time on market for the neighborhood – if the time on market is long, you may not want to accept the contingency offer if it will delay the sale of your home.
Is the property listed with a real estate agency or FSBO?
A Real Estate agent may move quickly in the market to get the buyer’s property sold and commissioned.
An attorney might take more time with other work that could delay the sale of your home.
A “kick out” clause can also be added to contingency clauses that gives the buyer a certain number of days to sell their property and if not, they have a certain amount of time to remove the contingency clause or their offer is null and void.

A contingency clause can benefit FSBO buyers if your property is not selling quickly at the market price. If your market is slow or your listing has been up for a number of days, a contingency might benefit you.

Contingency Clauses are there to enable buyers and sellers mutual time to sell and acquire properties. Talk to an attorney about the clauses and make sure you include the right language that helps your property sell in the market.

7 Steps To Conquer the FSBO Escrow Process

Post author By Matthew Schwartz
Post date August 30, 2022
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7 Steps To Conquer the FSBO Escrow Process

August 30, 2022

Matthew A. Schwartz

Ohio Real Estate Attorney

The FSBO Escrow Process Can Be Managed in 7 Steps with the Help of Inspectors, Notaries and and Attorney.

How to Manage FSBO Escrow when Selling or Buying in Ohio

Escrow in a real estate transaction refers to the period of time between the signing of an agreement and closing. The fsbo escrow process helps to ensure a smooth transaction between the parties by ensuring that funds are not released to either party unless/until all relevant terms and contingencies have been addressed.

1. Executing a Valid Purchase Agreement

The first step in the fsbo escrow process is to make an offer on a property. The offer letter becomes part of the escrow cache of documents and includes any contingencies and the terms of the offer, including the offer price and expiration date. For parties who are not represented by a real estate agent or attorney, standard templates may be available through a local Bar or Realtors association to aid in ensuring that an enforceable contract is achieved once the parties agree on general terms.

Buying a home is typically the single largest asset purchase for an individual. In some cases, unrepresented individuals may be tempted to create an offer from scratch or rely on a contract format suggested by the other party. In such cases, the hundreds of dollars spent on a qualified contract review can help to avoid potential damages that could be in the thousands or tens of thousands of dollars. A professional contract review will ensure that the party is aware of any risks associated with the material terms of the contract, that they have an opportunity to artfully present alternatives that are in line with industry practice, and that the contract is structured in a manner that does not provide an improper advantage to the opposing party.

Who draws up the contract in a FSBO home sale?

Once an offer has been finalized, an escrow account can be opened, typically by a title company, a financial institution or an attorney. In an FSBO transaction, it’s not uncommon for the attorney to establish an escrow account to manage documents and funds exchanged during the transaction. If an attorney handles the escrow process, it may also be known as a “settlement” account depending on the legal jurisdiction where the sale occurs.

The escrow or settlement account may include any earnest money or good faith deposit involved with the offer.

2. Lender Ordered Appraisal

In an FSBO transaction, the buyer pays for an appraisal ordered by the financial institution that is underwriting the mortgage. The financial institution often selects the appraisal company to validate the market value of the property and protect their financial interest in the property should it ever foreclose. If the appraisal value is less than the offer price, the bank will base the loan on the lower (appraised) value. In such cases, the seller will need to agree to accept the lower sales price, or the buyer will need to establish funds for the difference between the selling price and the appraised value. The purchase contract remains in place until either the buyer or seller satisfies the lender’s request.

3. Receive and Accept Seller Disclosures

During the selling process, the seller is obligated to specify or disclose, any irregularities with the property that may impede closing or reaching an agreement on the value of the property. That may include zoning violations, failed inspections, non-permissible uses, damages to the property, etc. The seller disclosures are added to the escrow or settlement account.

4. FSBO Buyer Funded Property Inspection

Home Inspection

While property inspections are not required to move forward with the purchase of a property, they can be extremely valuable in identifying non-visible conditions that could significantly impact the value of the house. Most property inspections are under $1000 and they help the buyer to identify any (potentially major) problems with the property before the close of the transaction. The buyer can ask the seller to correct any damage or repair the property at the seller’s cost OR request a lower price to allow the buyer to make the repairs before acquiring the property.

Any property that is listed “as is” indicates that the seller is unable or unwilling to make repairs or improvements prior to the close of the property. FSBO properties in Ohio sometimes come with an “as is” contingency because the homeowner is in financial distress or otherwise unable to improve the property.

Other Property Inspections

There are a few other types of inspections to consider before closing on a property:

Pest Inspections – pests like ants, termites, roaches, rats, squirrels, mice, etc. may have made their way into the property and nested causing unseen damage to walls and even electrical wiring. If there are pest problems present in the property, the buyer may demand that the seller remedy those problems through a pest remediation service or a reduction in the selling price. Some pest problems can lead to structural damages and may cost thousands, or even tens of thousands, of dollars to remedy.
Environmental Inspections – radon gas, mold, asbestos, coal, oil or gas spills, and other contaminants that may be on the property can pose serious health risks and can involve extensive costs to remediate.
Natural Disaster Assessments – some properties may be in areas prone to earthquakes, major winter storms, tornadoes, or flooding. Those assessments can identify the future risk of damage to the property that could substantially increase the cost of insuring the property.

All inspections and assessments are documents added to the escrow or settlement account for review before closing.

5. Acquiring Insurance on the Property

Appropriate insurance coverage will be required for any sale in which a financial institution is securing the buyer’s financing with a mortgage. In addition to standard homeowner’s insurance, Lenders may require specific coverage related to hazards such as hurricanes, earthquakes, or floods, depending on the location of the property. Costs for these provisions can be significant and may even exceed the base cost for standard coverage. Insurance rates can also vary dramatically depending on coverage options such as whether claims are paid at declared value or the replacement value. Once insurance coverage is approved and attained, the certificate of insurance is filed in the fsbo escrow or settlement account.

6. Acquiring the Title Report and Title Insurance

A Title Report is a document that indicates if there are any liens or legal claims against the property. Liens can arise from claims of unpaid debt asserted by contractors, financial institutions, or even Homeowners Associations (HOAs) and government entities. The Title Report protects the buyer against future litigation by verifying that the seller is able to sell the property unencumbered. Title insurance is a product that insures you and your financial institution against anything that might appear on the title AFTER the close that was not disclosed during the sale. Any discrepancies in the title are the responsibility of the seller to cure before the closing can be completed. The title report and title insurance are part of the escrow or settlement account.

7. Closing the Escrow Account

In preparation to close, you will receive a HUD1 document that shows the value of the home. This should match the documents you already have in place from the offer. Depending on the arrangement, there may also be a need to complete a final walk-through prior to closing.

The closing process involves signing the mortgage loan paperwork and other documents that transfer the deed and title of the property to the buyer. It’s strongly advised that you have a real estate attorney review your agreements.

The seller will be signing documents indicating the sale of the property, which should address one of the final contingencies for the closure of the fsbo escrow account. The escrow or settlement officer will prepare a new deed that is submitted to the county recorder for publication. Your lender will transfer the mortgage funds to the escrow account. Depending on the settlement structure, the buyer may need to provide separate funds at closing related to the down payment, taxes, fees, etc.

Upon completion of the closing, or as otherwise designated in the purchase contract and related documents, ownership, and possession of the property are officially transferred from seller to buyer.

How to Use a Gift of Equity in Ohio FSBO Transactions

Post author By Matthew Schwartz
Post date August 26, 2022
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How to Use a Gift of Equity in Ohio FSBO Transactions

August 26, 2022

Matthew A. Schwartz

Ohio Real Estate Attorney

how to add a gift of equity to a sale

FSBO Sales Directed at Family Members Can include a Gift of Equity

While saving on realtor fees is an excellent benefit of choosing to proceed with For Sale By Owner, some of the most valuable advice we can offer involves structuring a deal with a family member, renter, or someone with whom you have a close relationship.

During the transaction to sell the property, you may decide to price the property BELOW the actual appraised value of the property and that creates something called a Gift of Equity.

A Gift of Equity in a property allows the future owners and buyers of the property to leverage their newfound equity in the property as a down payment on the loan to finance the property and to avoid Private Mortgage Insurance (PMI) potentially. The Gift of Equity is an actual gift to the buyer, it may not be a “loan” and it may not be cash. These factors are normally certified in a Gift of Equity Letter.

4 Key Components to a Gift of Equity

A gift of equity involves the sale of a residential property for less than the appraised amount with no exchange of cash (or anything else of value) to offset the difference between the established market value and the purchase price.
A gift of equity is normally conducted between family members although not strictly forbidden between a seller and a buyer with a close relationship.
Lenders will require that the buyer is qualified for the mortgage they take on the selling price in order for the Lender to accept the Gift of Equity as a down payment on the mortgage.
Gifts of Equity are quantified through a Gift of Equity Letter. While the letter is not specifically required to be notarized, the use of a notary is recommended.

Potential Benefits for Gifts of Equity in Ohio

The buyer may be able to significantly lower or even eliminate a downpayment on the purchase of a family-owned property. With required down payments ranging from 5% to 20%, the Gift of Equity can resolve situations where buyers may struggle to establish the up-front money required to complete a purchase.
Gifts of Equity are conducted using an attorney to help draft the Gift of Equity Letter and manage the selling process from Affidavits of Title through the Mortgage Agreement with the lender.
Family members can pass generational wealth on to their children or other close relatives by passing equity from their home to them during the sale of the property.
Ohio has no Estate Tax or Gift Tax so sellers and buyers may be able to avoid a tax situation associated with the Capital Gains on the property.

Potential Drawbacks to Gifts of Equity in Ohio

While there is no firm Gift Tax in the State of Ohio, a large gift from an estate might trigger another tax. Consult an attorney or tax accountant to understand the full picture and potential tax implications.
A gift of equity could actually lower the cost of the house being purchased by the buyer as any cost associated with improving the property is transferred to the buyer as equity. But that can increase the capital gains value when the new owner sells the property potentially resulting in tax offsets.
A Gift of Equity does not cover the closing costs on a loan or filing fees for titles and deeds. A Gift of Equity is also filed using an attorney and legal fees may apply.

What is Required for a Gift of Equity in Ohio?

In Ohio, a Gift of Equity Letter is required, and while notarization is not required it is strongly encouraged. The letter contains the following:

The property seller must pay to have a professional appraisal completed on the property to establish the market value
The current market value of the property from the appraisal is stipulated in the Gift of Equity Letter.
The Gift of Equity Letter must include the price at which the property will be sold to the buyer and the dollar value of the Equity being transferred

The Gift of Equity Letter is part of the closing process and is presented at the time of closing and to potential lenders as loan vehicles are created for the new buyer of the property. The buyer MUST qualify for a loan to receive the equity.

Gift of Equity and Internal Revenue Service (IRS) Guidelines

While a Gift of Equity may not have tax consequences in the State of Ohio, it may have consequences with the Internal Revenue Service. In 2021, the IRS cap on gifts from a married couple to an individual is set at $32,000 a year and $16,000 from an individual to another individual. Capital Gains tax may apply on the difference between the Market Appraisal and selling price less the Gift cap. Consult a tax advisor or an attorney to find out more.

FSBO Pocket Listing | 7 Pros & Cons

Post author By Matthew Schwartz
Post date August 19, 2022
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FSBO Pocket Listing | 7 Pros & Cons

August 19, 2022

Matthew A. Schwartz

Ohio Real Estate Attorney

An FSBO Pocket Listing is a private Listing with an Attorney or other Agent to help sell the property without using public markets.

Pros and Cons of a Real Estate Pocket Listing in FSBO

In real estate, both residential and commercial, a pocket listing, or “off-market listing” is where the broker or agent representing the property does not list the property available to brokers or other multiple listing services. The property is privately marketed and sold by the broker or agent. Often in FSBO, the agent is an attorney representing a property on behalf of a client who is selling their property on their own.

One of the primary reasons for a property not being listed with other brokers or MLS services is the desire of the property owner to keep the dealing private. Another reason is that the sale of the property is already to a known buyer and there is no need for an MLS or broker to engage in the marketing and selling process.

Key Components of a Pocket Listing

Pocket listings are exclusively represented by a single agent or broker.
Pocket listings do not notify or market in public the sale of the property.
Pocket listings protect the privacy of the seller and the real estate transaction.
Pocket listings are often sold directly to a known buyer and have no need for marketplace marketing or selling.

Pocket Listing Pluses and Minuses

Pocket listing offers some strengths and weaknesses for people selling their homes. Let’s take a look…

Pluses to FSBO Pocket Listing

The agent or broker retains either the commission or has a legal bundle to help you save substantial money on selling your home – particularly homes with high market values.
Pocket listings provide privacy for both the buyer and seller. Many reasons privacy may be warranted from work-related changes to high-value properties that remain out of the public eye.
The pocket listing enables the seller to look at selling prices outside of “comparable” values in the market and position the property as something that exceeds market prices for specific buyers.
For example, a reclusive private property may be very attractive public figures, sports figures, or highly affluent executives seeking privacy and security. That can drive pricing that is outside of “comps” and focuses on the value of the property to the right buyer.

Minuses to FSBO Pocket Listing

When you Pocket List your property, you have entrusted the sale of your property into the hands of a single individual and their knowledge of the market.
Pocket listings are less likely to be engaged in a battle of competitive bids that can drive the price of a property up.
Pocket listings, by default, are not listed in the market, so the selling process can take longer. This is not an issue for an FSBO seller who is looking for the right buyer.
While Pocket Listing gets you out of marketplaces, the listing agent may be a member of a chamber, a private club, or a group where the private offering can reach the ears of the right buyers. While the market visibility is low, it should be fairly well targeted.

Example of a Pocket Listing

George has been playing a professional sport in town and has decided he wants to leave the market and move elsewhere. George approaches an attorney and creates a pocket listing for the property with the client privilege and privacy needed to get the $5MM property moving in a market with a limited number of buyers.

George’s attorney represents his client and the property and quietly works through his network of targeted customers, an ideal buying profile, and discusses the opportunity for the private sale. George’s attorney requires a mutual NDA before mentioning the location or the seller of the property. George’s attorney charges a flat 5% fee on the listing and sale of the property and has 90 days to sell the property under the agreement.

Pocket Listings can be constructed for the mutual benefit of both buyer and seller and the buyer and his or her agent or broker. Pocket Listings are not reserved for luxury homes but can be useful tools to maintain privacy while selling a piece of property.