Property Disclosure Law Information

New Residential Property ‘Disclosure’ Law Takes Effect January 1st

Release Date: Friday, December 29, 2006
Contact: John Baker, Housing Inspection Manager, 333-3977

Effective January 1, 2007, all residential property transfers or sales within the city of Dayton will be required to include a “disclosure of open violation” notice. The City Commission approved the Ordinance recently to ensure that code violations are resolved or acknowledged before a property changes hands. The new law requires both the buyer and seller of any residential property to file a Certificate of Disclosure with the Housing Inspection Division. This disclosure form must be filed with the Housing Inspection Division regardless of whether or not there are any outstanding violation notices on the property.

“Too often a homebuyer will acquire a home without realizing there are outstanding code violations connected with the property,” said John Baker, Manager of Housing Inspection for the City of Dayton. “This new Ordinance will help ensure that properties in need of repairs get fixed before they are sold or transferred to another individual. It’s just another way we can help enhance the quality and vitality of our neighborhoods.”

Any open violation notices must be disclosed so that they can be corrected prior to the sale or it confirms that the buyer is agreeing to make the listed repairs.

Beginning in January, the Certificate of Disclosure form can be found on the City of Dayton’s website (www.cityofdayton.org), in the Building Services Department at 371 West Second Street, at Priority Board site offices, and in public libraries in the city of Dayton.

The following information provides additional detail about the Disclosure Ordinance:

What is the purpose of the Disclosure Ordinance?
To help ensure that any existing violation notices on the property get resolved satisfactorily.

How does the Disclosure Ordinance accomplish that?
The disclosure ordinance requires the addresses and phone numbers of the buyer, seller, real estate agent, title company, appraiser, and mortgage or lending institution assisting in the conveyance. Any open violation notices must be disclosed so that they can be corrected prior to the sale or it confirms that the buyer is agreeing to make the listed repairs.

Can the property be sold with an open code violation notice?
Yes. However the buyer is acknowledging that they will appeal the violation notice to the Housing Appeals Board within 10 days or make the necessary repairs within 90 days of the sale. Failing to comply with the Legal Notice is a third degree offense punishable by up to a $500.00 fine and or 30 days incarceration.

Who has to file this Certificate of Disclosure?
Both buyer and seller must sign the completed Certificate of Disclosure, so either party may actually submit the completed form. 93.54 (A)

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Are there any exceptions?
Yes. Section 93.54 (D) exempts sales or transfers made under the following circumstances:
(1) Made pursuant to judicial orders;

(2) Made to or by the state, a political subdivision of the state, or another government entity;

(3) Made between spouses or former spouses as a result of a decree of divorce, dissolution of
marriage, annulment, or legal separation or as a result of property settlement agreement incidental to a decree of a divorce, dissolution of marriage, annulment, or legal separation.

Is there a cost for filing the Certificate of Disclosure?
Only if there is an open violation notice outstanding on the property. If violation notices do exist, then a $60.00 filing fee is required. If there are no violation notices, the filing of the disclosure form is free. 93.54 (C)

How do I know if violation notices exist?
Beginning on January 1, 2007 you can find this information at the City of Dayton’s web site www.cityofdayton.org. By searching for the address of the property, you will be able to search for any open violation orders.

What do I do when I find the address?
The violations cited on any orders will appear in a list. You can then select to print the Certificate of Disclosure and the violations will print within the form. Have both the buyer and seller sign the completed application and fax to (937) 333-4294 or mail to the following address:
Housing Inspection Division
Certificate of Disclosure
P.O. Box 22
Dayton OH 45401-0022

What if I can not find the address on your web site?
For newer structures, it is possible that we do not have the address in our Housing Inspection data base system yet. If you do not find the address you are looking for, call (937) 333-3977 and ask to speak to someone to obtain a Certificate of Disclosure form on a property not listed in the system. They will take your information and research the address and get back to you within 48 hours.

When does the form need to be submitted?
The signed Certificate of Disclosure must be received at least three (3) days prior to the sale of the property. 93.54 (B)

Is there a penalty for not complying with this ordinance?
Yes. For individuals, the first violation of this section is a minor misdemeanor, and any subsequent offense is a fourth degree misdemeanor. A minor misdemeanor conviction carries a maximum fine of $150.00. A fourth degree misdemeanor conviction carries a maximum fine of $250.00 and or incarceration of not more than 30 days.

For an organization convicted of violating this section, a minor misdemeanor conviction carries a maximum fine of $1,000.00, and a fourth degree misdemeanor conviction carries a maximum fine of $2,000.00.