| Perfection
|| Possession and Sale || New Title
and Plates || Other Issues
|| Kelley Blue Book | |
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| LAWDOG™ Ohio Repossession |
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| Vehicle Title Required No
person, with limited exceptions, may sell or dispose of a motor vehicle without delivering
to transferee a certificate of title with assignment sufficient to show title in
transferee. Except for certain salvage and other situations, as provided in section
4505.11, no person may buy or acquire a motor vehicle without obtaining a
certificate of title in person's name. 4505.03 |
| Certificate To Lienholder If Any
The clerk of the court of common pleas issues certificates of title in duplicate. One copy
is retained and filed by the clerks' office. The clerk signs and affixes clerk's seal to
original certificate, and if there are no liens on vehicle, delivers certificate to
applicant or selling dealer. If there are liens on vehicle, certificate of title is
delivered to holder of first lien or selling dealer, who shall deliver certificate
of title to holder of first lien. See Section 4505.08 |
| Perfection of Lien By Filing and Notation
Except for dealer inventory, discussed below, any security agreement covering a security
interest in a motor vehicle, if a notation of the agreement has been made by clerk of the
court of common pleas on face of certificate of title, is valid as against creditors of
the debtor, whether armed with process or not, and against subsequent purchasers, secured
parties, and other lienholders or claimants. All security interests, liens, mortgages, and
encumbrances noted upon a certificate of title take priority according to the order of
time in which they are noted on the certificate by clerk. See Ohio Revised Code Section 4505.13 |
| New Title Showing Lien The
secured party, upon presentation of security agreement to clerk of the county in which
certificate of title was issued, together with certificate of title and fee, may have a
notation of the security interest made. The clerk issues, over the clerk's signature and
seal of office, a new original certificate of title from automated title processing
records that indicates the security interest and date of security interest. See Ohio
Revised Code Section 4505.13 |
| Present To Clerk When Satisfied
When the security interest is discharged, the holder must note its discharge on face of
certificate of title or approved form, over holder's signature. Prior to delivering
the certificate to owner, holder or agent must present to clerk for purpose of having
clerk note cancellation of security interest on face of certificate and upon records of
the clerk. The clerk, if cancellation appears to be genuine, notes the cancellation on
certificate of title and on clerk's records. See Ohio Revised Code Section 4505.13 |
| Dealer Inventory Sections 1309.01
to 1309.50
of the Revised Code apply to a security interest in a motor vehicle held as inventory for
sale by a dealer. The security interest has priority over creditors of the dealer as
provided in sections 1309.01
to 1309.50 of the Revised Code without notation of the security interest on a certificate
of title or without the retention of a manufacturer's or importer's certificate. See Ohio
Revised Code Section 4505.13 |
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| Possession Without Breach of the Peace
Unless otherwise agreed a secured party has, on default, the right to take possession of
the collateral. In taking possession a secured party may proceed without judicial process
only if this can be done without breach of the peace. If not, a legal action may proceed.
See Ohio Revised Code Section 1309.46 |
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| Right To Redeem At any time
before secured party has disposed of collateral or entered into contract for its sale
under section 1309.47
or before discharge under section 1309.48,
debtor or any other secured party may, unless otherwise agreed in writing after default,
redeem the collateral by tendering fulfillment of all obligations secured by collateral,
and expenses reasonably incurred by secured party in retaking, holding, and preparing
collateral and arranging for sale. See Ohio Revised Code Section 1309.49 |
| Compulsory Sale If debtor
has paid sixty per cent of the cash price in case of a purchase money security interest in
consumer goods, or sixty per cent of the loan in case of another security interest in
consumer goods, and has not signed after default a statement renouncing or modifying
rights under sections 1309.44
to 1309.50
of Ohio Revised Code, secured party who has taken possession must dispose of collateral by
sale under section 1309.47
. If secured party fails to do so within ninety days after possession, debtor may recover
certain damages on secured party's lability. See Ohio Revised Code Section 1309.48 |
| Acceptance As Satisfaction
In other cases not involving 60% consumer goods rule, secured party in possession may,
after default, propose to retain the collateral in satisfaction of the obligation. Written
notice of the proposal must be sent to debtor if debtor has not signed, after default, a
statement renouncing or modifying rights. In case of consumer goods no other notice need
be given. In other cases, notice must be sent to any other secured party from whom secured
party has received, before sending notice to debtor on or before renunciation of rights,
written notice of claim of interest in the collateral. If secured party receives objection
in writing from a person entitled to receive notice within twenty-one days after notice
was sent, secured party must dispose of the collateral by sale under section 1309.47.
If no such written objection is received, secured party may retain the collateral in
satisfaction of the obligation. See Ohio Revised Code Section 1309.48 |
| Sale and Application of Proceeds
A secured party after default may sell, lease, or otherwise dispose of any or all of the
collateral in its then condition or following any commercially reasonable preparation or
processing. Any sale of goods is subject to Chapter 1302 of the Revised Code. The proceeds
of disposition are applied in the order following to reasonable expenses of retaking,
holding, preparing for sale or lease, selling, leasing, and the like. Proceeds would next
be applied to satisfaction of debt secured by the security interest under which sale is
made. See Ohio Revised Code section 1309.47 |
| Subordinate Liens If
proceeds remain, they would next apply to satisfaction of debt secured by any subordinate
security interest in collateral, if written notice of demand is received before
distribution of proceeds is completed. If requested by secured party, holder of a
subordinate security interest must seasonably furnish reasonable proof of interest, and
unless he does so, secured party need not comply with demand. See Ohio Revised Code
section 1309.47 |
| Accounting and Deficiency
If the security interest secures debt, secured party must account to debtor for any
surplus, and, unless otherwise agreed, debtor is liable for any deficiency, according to
rules shown below. |
| Public or Private Sale After Notice
Disposition of collateral may be by public or private sale and may be at any time and
place and on any terms, but every aspect of the disposition including method, manner,
time, place, and terms must be commercially reasonable.
Unless collateral is perishable, reasonable notice of time and place of any public sale or
time after which any private sale is to be made must be sent by secured party to debtor if
debtor has not signed, after default, a statement renouncing or modifying right to notice
of sale. In case of consumer goods no other notice need be sent. |
| Notice To Subordinate Liens
In other cases, notification must be sent to any other secured party from whom secured
party has received, before sending notice to debtor or before renunciation of rights,
written notice of claim of interest in the collateral. See Ohio Revised Code section 1309.47 |
| Deficiency and Compliance
If secured party in disposing of collateral has complied with all requirements of this
section, and has disposed of collateral in a commercially reasonable manner, the amount of
the deficiency, if any, to which secured party is entitled is based on actual proceeds of
the disposition. See Ohio Revised Code section 1309.47 |
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| Deficiency Limited Without Compliance
If secured party in disposing of collateral has failed to comply with the
requirements of this section, the amount of the deficiency, if any, to which secured party
is entitled, is based on the appropriate value of the collateral, which is presumed to
equal the secured indebtedness in this situation. The secured party may rebut this
presumption by introducing some credible evidence of a lower appropriate value of the
collateral. Evidence of amount of actual proceeds of sale is not, of itself, sufficient to
rebut presumption. |
| If Presumption Rebutted
If secured party rebuts this presumption, the appropriate value of the collateral
will be deemed to equal actual proceeds of sale, unless debtor establishes that a greater
amount would have been realized had secured party complied with the requirements of this
section, in which case, the greater amount established by debtor will be deemed the
appropriate value of the collateral. The debtor bears the burden of establishing amount
that would have been realized had secured party complied with requirements of this
section, by selling the collateral in a commercially reasonable manner. See Ohio Revised
Code section 1309.47 |
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| Transfer By Operation of Law In
event of transfer of ownership of motor vehicle by operation of law, as upon inheritance,
devise, order in bankruptcy, insolvency, replevin, or execution sale, a motor vehicle is
sold to satisfy storage or repair charges, or repossession is had upon default in
performance of the terms of a security agreement as provided in Chapter 1309, of the
Revised Code, the clerk of the court of common pleas of county in which last certificate
of title to vehicle was issued, upon surrender of prior certificate of title or
manufacturer's or importer's certificate, or, when not possible, upon presentation of
satisfactory proof to clerk of ownership and rights of possession to vehicle, and upon
payment of fee, and application for certificate of title, may issue to applicant a
certificate of title to vehicle. See Ohio Revised Code section 4505.10 |
| Affidavit Showing Possession Appropriate
Only an affidavit by person or agent of person to whom possession of motor vehicle has
passed, setting forth facts entitling person to possession and ownership, together with a
copy of journal entry, court order, or instrument upon which claim of possession and
ownership is founded, is satisfactory proof of ownership and right of possession. If
applicant cannot produce that proof of ownership, applicant may apply directly to
registrar of motor vehicles and submit evidence the applicant has, and registrar, if
registrar finds the evidence sufficient, may authorize clerk to issue certificate of
title. If records in office of clerk show any lien on vehicle, certificate of title will
contain a statement of lien unless application is accompanied by proper evidence of
extinction of lien. See Ohio Revised Code section 4505.10 |
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