Ohio banned agreements that run with the land, and named you as an exception
Ohio banned agreements that run with the land, and named you as an exception
2026-09-15 · Ohio · Legislation
Ohio has made it illegal to record a long-term service agreement that purports to bind future owners of a home — and the statute names condominium declarations, planned-community declarations and association maintenance contracts as express exceptions. That carve-out is the most quotable HOA-specific sentence enacted by this General Assembly.1
Senate Bill 101, sponsored by Senator Louis W. Blessing III, was signed March 17, 2026 and took effect June 16, 2026. It enacts R.C. 5301.75 through 5301.78 and amends eleven other sections.
What is now banned
R.C. 5301.76(A) prohibits a service provider from entering, amending or renewing a service agreement with a consumer where the service is not to be performed within one year and the agreement has any of three characteristics:
“(a) The service agreement purports to run with the land or to be binding on future owners of interests in the residential real estate. (b) The service agreement allows for assignment of the right to provide the service subject to the agreement without notice to and consent of the owner of the residential real estate. (c) The service agreement purports to create a lien, encumbrance, or other security interest in the residential real estate.”
These are the forty-year “we get the listing whenever you sell” instruments that have been recorded against homes in exchange for a small upfront payment.
The carve-out, in the statute's own words
R.C. 5301.76(C) excludes a list, and items (4) and (5) are the association exceptions:
“(4) A declaration created in the formation of a planned community, as defined in section 5312.01 of the Revised Code, or a condominium development, as defined in section 5311.01 of the Revised Code, or any amendment to such a declaration; (5) A maintenance or repair agreement entered by an owners association, as defined by section 5312.01 of the Revised Code, or a unit owners association, as defined by section 5311.01 of the Revised Code;”
The enforcement is sharp
R.C. 5301.77(B): “A county recorder shall not accept for recording an unfair service agreement or a notice or memorandum of an unfair service agreement.”
And if one slips through, subsection (C) provides that it “does not provide actual or constructive notice against an otherwise bona fide purchaser.”
R.C. 5301.78(A)(2) makes the remedy mandatory on a finding: the court “shall” declare the agreement unenforceable and award “(i) Actual economic damages; (ii) Court costs and fees; (iii) Reasonable attorney's fees.” A violation is also “an unfair and deceptive act or practice in violation of section 1345.02 of the Revised Code.”
These instruments usually surface during a resale. Our Ohio estoppel and resale page covers what the association produces at that point.
Why the carve-out had to be there
Look at what an association's declaration is, measured against the three banned characteristics.
It runs with the land and binds future owners — that is the entire point of it. It lasts far longer than a year. And it creates a lien: R.C. 5311.18 and 5312.12 give an association a lien on the unit or lot for unpaid assessments.
A declaration hits all three. So does an association's long-term landscaping, snow-removal or elevator-maintenance contract, in the sense that it binds the association as a continuing entity whose membership turns over.
Without subsections (C)(4) and (C)(5), the most common recorded instrument in Ohio residential real estate would have been swept into a statute aimed at a predatory listing practice. A board that reads “Ohio just banned agreements that bind future owners” and worries about its own declaration is reading it wrong, and the statute says so by name. Our Ohio governing statute page covers what the declaration does that this statute leaves alone.
Where it does reach an association's members
“Residential real estate” is defined as property of one to four dwelling units, which captures an individual condominium unit. So the protection runs to the owners, not the association — and that is where a board can be useful.
If an owner in your community discovers one of these instruments in their chain of title, the route is a civil action in the county of recording. On a finding, damages, costs and attorney fees are mandatory, and the judgment can be recorded back into the chain of title to clear it.
Since June 16, 2026 county recorders must refuse these at the counter, so the exposure is to instruments recorded before that date. Those are the ones that surface during a resale, usually at the worst moment.
The companion enactment that reaches owners
Senate Bill 155, signed December 1, 2025 and effective March 2, 2026, addresses a related pressure on association owners: the cash-offer wholesaler.
New R.C. 5301.95 requires a wholesaler, before contracting to buy a home, to hand the owner a boldface disclosure stating that “A wholesaler is acting on the wholesaler's own behalf and does not represent the owner in this transaction…The wholesaler may assign the wholesaler's interest in the purchase contract to a third party without the owner's consent before closing. The wholesaler may charge a fee to the third-party buyer separately for profit. The agreed purchase price between the owner and wholesaler may be below market value and is conveyed voluntarily.”
If the disclosure is not given, R.C. 5301.95(C)(1) lets the owner “cancel the contract at any time prior to the close of escrow without penalty,” with earnest money disbursed to the owner within thirty days. And it cannot be contracted around: any waiver is “void ab initio and unenforceable.”
That matters in aging Ohio condominium communities, which is exactly where cash-offer operators concentrate — especially when a special assessment is pending and owners are looking for a fast exit. A board facing a large assessment vote should hand this to the membership as a one-page fact, because the pressure arrives at the same time as the vote.
What to do
Do not let anyone tell you your declaration is now unenforceable. The exception is explicit, by statutory cross-reference, in the text.
Tell owners about the wholesaler disclosure before your next special assessment. The right to cancel without penalty, at any time before closing, is worth more to an owner than any advice a board can give about the assessment itself.
Related Ohio HOA Topics
- R.C. 5301.76, Unfair service agreements prohibited (eff. June 16, 2026, S.B. 101) ↩
- R.C. 5301.78, Civil action; mandatory damages, costs and attorney's fees ↩
- R.C. 5301.95, Real estate wholesaler disclosure (eff. Mar. 2, 2026, S.B. 155) ↩
- Senate Bill 101, 136th General Assembly (signed Mar. 17, 2026) ↩
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