Analysis of Ohio's Amended Receivership Law | Page 13

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expenses, or whether an additional amount akin to a break-up fee is
permissible.
Provisions Applicable to Real Estate (Including Sales Free and
Clear of Liens)
Section 2735.04 prescribes a self-contained set of sale procedures
and requirements applicable to a Receiver’s sale of real property.
That is, with two exceptions expressly incorporated into Section
2735.04, the provisions of Chapter 2329 of the Ohio Revised Code
(Execution Against Property), which include real estate foreclosure
procedures, do not apply to a Receiver’s sale under Section
2735.04(D). Thus, such requirements as an appraisal by three
disinterested freeholders, a minimum sale price of two-thirds of the
appraised value, requirements for advertisement of the sale, etc. are
not applicable. The two exceptions, which are noted below, are:
(1) the requirement of a preliminary judicial report or owner’s title
insurance policy commitment, and (2) a provision stating the effect
of a Receiver’s deed.
A sale of real estate cannot occur unless all of the following three
requirements are met: (1) an application is filed, (2) notice and an
opportunity for a hearing are provided, and (3) the court enters an
order authorizing the sale. These requirements are examined in
more detail below.
(1)

The Application to Sell

The Receiver or first mortgage holder must file an application for
authority for the Receiver to sell the specific real property (“Sale
Application”); and either:

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