Who Pays the Conveyance Fee in Ohio?

Real estate transactions in Ohio involve several financial considerations beyond the agreed-upon purchase price. Understanding these various fees is important for both buyers and sellers to accurately assess the total cost of a property transfer. Among these costs, the Ohio conveyance fee stands as a notable expense associated with legally transferring property ownership.

Defining the Ohio Conveyance Fee

The Ohio conveyance fee functions as a transfer tax imposed by the state on real estate transactions. This fee is calculated based on the value of the real estate being sold or transferred from one party to another. It comprises two main components, a statewide mandatory tax and an additional permissive county tax.

The mandatory statewide tax is set at one mill, which translates to $1 for every $1,000 of the property’s value. On top of this, Ohio counties possess the authority to levy an additional permissive real property transfer tax, which can range up to three additional mills. This means the total conveyance fee can vary by county, potentially reaching up to $4 per $1,000 of the property’s value.

The fee applies to the sale price or the value of the property, including used manufactured homes. The county auditor or recorder’s office at the county level is responsible for collecting this specific fee.

Determining Payment Responsibility

In Ohio real estate transactions, the seller typically bears the responsibility for paying the conveyance fee. This common practice aligns with Ohio law, which levies the tax directly upon the grantor, who is the seller, named in the deed.

While the prevailing custom places the burden on the seller, the responsibility for paying the conveyance fee is ultimately a negotiable term between the buyer and the seller. This negotiation is formalized and documented within the purchase agreement or sales contract that governs the transaction. The agreement explicitly outlines which party, or how the parties will share, this particular closing cost.

Regardless of the negotiated party, the conveyance fee must be paid for the property transfer to be legally recognized. The county auditor collects the fee at the time the deed is delivered, and payment must occur before the deed can be presented to the county recorder for official recording.

Common Exemptions and Required Documentation

Several specific situations allow for an exemption from the Ohio conveyance fee:
Transfers between government entities, or to or from the United States or the state of Ohio, are typically exempt.
Gifts between spouses, between a parent and child, or to the spouse of either, also generally qualify for exemption.
Transfers made solely to provide or release security for a debt.
Transfers to confirm or correct a previously recorded deed.
Transfers resulting from an inheritance or a court order.
Transfers to or from a non-profit organization, provided there is no consideration and the transfer furthers the organization’s charitable purpose.
Transfers where the value of the property conveyed does not exceed $100.

Even when a transfer qualifies for an exemption, specific documentation is required to substantiate the claim. The primary document for this purpose is the DTE 100EX, known as the “Statement of Reason for Exemption from Real Property Conveyance Fee.” This form requires precise information, including the specific exemption code applicable to the transaction, details about the transfer, and identification of the parties involved. County auditors may request additional supporting documents, such as affidavits, trust agreements, or court orders, to verify the exemption claim.

The Conveyance Process and Fee Payment

The payment of the Ohio conveyance fee typically occurs at the real estate closing. The title company or escrow agent facilitating the closing usually manages the collection of this fee.

The fee amount, if applicable, is detailed on the final settlement statement and is generally deducted from the seller’s proceeds. The procedural roles of the county auditor and county recorder are integral to this step. The county auditor reviews the Real Property Conveyance Fee Statement of Value and Receipt, known as DTE 100, which accompanies the deed for all property transfers, whether taxable or exempt. If an exemption is claimed, the DTE 100EX form is also reviewed by the auditor.

Once the auditor has verified the forms and the fee has been paid, the auditor endorses the deed. The deed, along with the necessary DTE forms, is then submitted to the county recorder’s office for official recording.