Why Ohio is different
The two regimes were closely aligned by Senate Bill 61, effective September 13, 2022, which modernized reserves, records access, fidelity insurance, and the enforcement-fine procedure. The first diligence question in any Ohio transaction is which statute applies: multi-unit horizontal-property buildings with shared structure are almost always Chapter 5311 condominiums, while detached single-family communities are typically Chapter 5312 planned communities. Lien, disclosure, and governance mechanics differ in detail even after SB 61 harmonized much of the language. There is no state condo or HOA regulator, no ombudsman, and no registration — disputes are resolved by civil action in the county court of common pleas. Ohio's signature feature is its statutory reserve mandate. Under ORC §5311.081 for condominiums and §5312.06 for planned communities, the board must adopt an annual budget that includes reserves adequate to repair and replace major capital items in the normal course of operations without the necessity of special assessments. The mandate has two exceptions, however: it does not apply where the declaration or bylaws limit the board's authority to raise assessments without an owner vote, or where owners waive the requirement in writing by at least a majority of voting power annually. SB 61 made the waiver an annual event that lapses and must be re-voted each year, removing the older fixed formula. The practical result is that Ohio mandates funding on paper but leaves an easy annual escape hatch, so many associations remain underfunded. Ohio does not require a formal reserve study by an engineer or reserve specialist, and the statute does not define what adequate means, so the standard is effectively self-assessed by the board. The defining buyer story is the special-assessment trap born of decades of underfunded reserves in aging mid-century condo stock across Cleveland, Columbus, Cincinnati, Dayton, Akron, and Toledo, combined with a sharply hardening insurance market driven by record severe-storm losses. Ohio set a record 74 tornadoes in 2024, and homeowner premiums rose roughly 36 percent from 2019 through 2024, with master condo policies tracking the same hardening and carriers pushing higher wind and hail deductibles. Ohio is not a super-lien state: under ORC §5311.18 and §5312.12 the association lien is subordinate to a first mortgage recorded before the association files its lien certificate, and repeated legislative attempts to add a six-month super-priority (HB 226, HB 371, HB 572) have failed to pass for more than a decade. Unpaid assessments therefore often go uncollected in foreclosure and are effectively spread to paying owners. Resale disclosure is a weak point. Ohio has no condo-specific statutory resale certificate compelling the seller or association to deliver a standardized package of assessments, reserves, insurance, and litigation. Resales of an existing unit run on the state-prescribed Residential Property Disclosure Form under ORC §5302.30 — a property-condition disclosure, not an association-financials disclosure — and the common-law doctrine of caveat emptor still governs. Developer and new-construction sales are different: ORC §5311.26 requires a developer disclosure statement with a two-year budget projection and rescission rights. Because the statute will not hand a resale buyer the association's finances, proactive document review is the buyer's main protection. Records access is itself limited: under ORC §5311.091 and §5312.07, owners may not reach records older than five years or certain protected categories without board approval, which caps how far back a long-running problem can be traced. For high-rise condos, Cleveland, Columbus, and Cincinnati each run periodic exterior-wall or façade inspection programs that create a recurring local compliance obligation and a paper trail a buyer should request.
Reserve mandate with an annual waiver loophole
ORC §5311.081 (condos) and §5312.06 (planned communities) require the board to budget reserves adequate to repair and replace major capital items without special assessments. But the mandate does not apply if the declaration limits the board's assessment authority, or if owners waive it in writing by majority vote each year. Senate Bill 61 (2022) made the waiver an annual event. Ohio also does not require a formal reserve study and does not define adequate, so funding is effectively self-assessed. Ask whether reserves have been waived and for how many consecutive years — a multi-year waiver is a strong special-assessment warning.
The special-assessment trap in aging stock
Ohio's mid-century condo boom left Cleveland, Columbus, Cincinnati, Dayton, Akron, and Toledo with 1960s–1990s buildings whose roofs, parking decks, elevators, plumbing, and masonry are reaching end-of-life. Decades of thin budgets produced a history of surprise five-figure special assessments — what Ohio practitioners call condominium roulette. The reserve mandate was designed to reduce specials, but the annual-waiver loophole means they remain common. A heavy special-assessment history or pending assessment is a core diligence finding.
Not a super-lien state
Under ORC §5311.18 and §5312.12, the association's lien for unpaid assessments is subordinate to real-estate-tax liens and to a first mortgage recorded before the association files its certificate of lien. Ohio has no six-month super-priority over first mortgages, and bills to create one (HB 226, HB 371, HB 572) have repeatedly failed. When an owner defaults, a foreclosing first mortgagee can wipe out the association's claim for back dues, so unpaid assessments often go uncollected and are spread to paying owners. A high count of recorded liens or delinquent units is a whole-association financial-distress signal.
Hardening severe-storm insurance market
Ohio condominium associations must carry property coverage of at least 90 percent of replacement cost and fidelity coverage under ORC §5311.16. The market is hardening fast: Ohio set a record 74 tornadoes in 2024, and homeowner premiums rose roughly 36 percent from 2019 through 2024, with master policies tracking the trend and carriers imposing higher, often separate, wind and hail deductibles and roof-age or actual-cash-value limits. A master-policy deductible above roughly 5 percent of coverage can exceed Fannie Mae and Freddie Mac limits and jeopardize financing. Review the master declarations page for the 90 percent floor, fidelity coverage, and deductible structure.
Weak resale disclosure and caveat emptor
Ohio has no condo-specific statutory resale certificate. Resales run on the Residential Property Disclosure Form (ORC §5302.30), a property-condition form rather than an association-financials disclosure, and the common-law doctrine of caveat emptor still governs existing-unit resales. Records access is capped at five years under ORC §5311.091 and §5312.07. The law will not compel delivery of budgets, reserves, minutes, insurance, or special-assessment history on a resale — the buyer must request them. Developer and new-construction sales differ: ORC §5311.26 requires a developer disclosure statement with rescission rights.
