Ohio House Bill 96 (aka “the Budget Bill”) was signed by Governor DeWine on July 1, 2025, with a stated effective date of September 30, 2025. The Bill includes changes to the Notice of Commencement Statute.
The changes include 1) the expiration of a recorded Notice of Commencement changes from six years to four years, and 2) the property owner can record an affidavit of completion, with a requirement of service to the contractor, to update the county records that the improvement is complete. This new owner’s affidavit of completion does not terminate a contractor’s right to file a mechanic’s lien during the applicable statutory period.
The changes can be found in the following statutes:
- O.R.C. Section 1311.04(B)(12): The expiration date for the notice of commencement is four years from the date of recording unless a different date is specified and the following statement shall be contained in the Notice of Commencement affidavit: “The expiration date for this notice of commencement is four years from the date of recording unless a different date is specified herein.”
- O.R.C. Section 1311.04(T)(1): An owner, part owner, or lessee of real property who contracts for an improvement, or that person’s agent may, upon completion of the improvement, submit an affidavit to the office of the county recorder for each county in which the real property that was improved is located stating all of the following:
- The name, address, and capacity of the owner, part owner, or lessee, or the agent of the owner, part owner, or lessee of the real property;
- The recording reference for the previously filed notice of commencement;
- That the improvement is complete.
- O.R.C. Section 1311.04(T)(2): Upon receipt of an affidavit described in division (T)(1) of this section, the county recorder of the county where the affidavit is submitted shall indicate in the official records that the notice of commencement has expired.
- O.R.C. Section 1311.04(T)(3): The owner, part owner, or lessee of the real property who contracted for the improvement shall serve a copy of the recorded affidavit submitted pursuant to division (T)(1) of this section, by regular mail, upon the original contractor as well as any subcontractor or lower tier project participant that served a notice of furnishing pursuant to section 1311.05 of the Revised Code.
- O.R.C. Section 1311.04(T)(4): Service, lack of service, or a deficiency in service of the recorded affidavit under division (T)(3) of this section does not:
- Affect the expiration of the notice of commencement;
- Extend the rights of any party seeking to file an affidavit of mechanic’s lien;
- Affect any time periods or other rights, requirements, or limitations that are set forth in this chapter.
- O.R.C. Section 1311.04(U): The expiration of a notice of commencement pursuant to division (S) or (T)(2) of this section does not affect the attachment, continuance, or priority of any lien under Sections 1311.13 (NOTE: Attaching of liens-continuance and priority); 1311.14 (NOTE: Priority of mortgage lien); and 1311.15 (NOTE: Superiority of liens-assignment-direct payment of claim of sub-contractor, materialman or laborer.) of the Revised Code.
- O.R.C. Section 1311.252(B)-regarding public improvements: removes the affidavit form requirement for notice of commencements for public improvements
