Ohio’s New Senate Bill 101: What Property Owners, Trustees & Real Estate Professionals Need to Know
Ohio’s Substitute Senate Bill 101 (Sub. SB 101) became effective on June 16, 2026, introducing several important changes affecting real estate transactions throughout the state. While much of the legislation focuses on recording requirements and consumer protections, one provision will have a direct impact on transactions involving trusts.
Memorandums of Trust Now Required
One of the most significant changes requires that when real estate is conveyed by the trustee of a disclosed trust, a Memorandum of Trust (or another qualifying trust instrument) must be recorded. The recorded document identifies key information such as:
- The trustee’s name and address
- The date the trust was executed
- The trustee’s authority to buy, sell, mortgage, or otherwise convey real estate
- Any limitations on those powers
The purpose is to provide greater transparency, create a clearer public record, and reduce uncertainty during real estate transactions. The legislation also includes additional recording requirements for certain liens and expands consumer protections by prohibiting specific unfair residential real estate service agreements. These changes are designed to improve the reliability of Ohio’s public land records and help protect property owners.
An Important Reminder About Trusts and Powers of Attorney
Although this is not a new provision created by SB 101, the legislation serves as a timely reminder of an issue our closing teams frequently encounter.
A Power of Attorney (POA) granted by an individual generally does not allow someone else to act on behalf of a trustee simply because the trustee becomes incapacitated.
For example:
A home is owned by the John Smith Revocable Trust.
John serves as the trustee but later develops dementia and is no longer capable of managing the trust.
Even if John previously signed a Durable Power of Attorney naming his daughter as his agent, that POA alone does not automatically authorize her to execute documents as trustee of the trust.
Instead, the trust document itself controls what happens next. Depending on its terms, this may require:
- A physician’s certification or letter confirming the trustee’s incapacity.
- Appointment or acceptance of a successor trustee as outlined in the trust.
- Additional trust documentation before the property can be sold or refinanced.
Every trust is different, making early review of the trust documents essential.
Planning Ahead Makes Closings Smoother
If you own property in a trust—or work with clients who do—it is wise to review trust documents before listing a property or scheduling a closing. Identifying trustee authority early can help avoid unexpected delays and ensure all required documentation is available when it’s time to sign.
At Landmark Title Agency South, we work closely with buyers, sellers, lenders, REALTORS®, and attorneys to identify potential title issues early and keep transactions moving forward as smoothly as possible.
Questions about a trust, trustee authority, or your upcoming closing? Our experienced team is here to help guide you through the process. 937.432.6300
