901-2-06 Determination of selected application properties.

 

 

 

901-2-06                      Determination of selected application properties.

 

 

 

(A)  Phase 1 "Application" - Within ninety days of the close of the application period, and after the farmland ranking system evaluation is completed, top scoring applicationsapplicants from the combined tier one" and tier two evaluations, in descending order, will be notified by the director that their applications application has been selected to proceed to phase 2 of the process. have been approved for grant funding, pending completion of a title search, legal boundary review, appraisal, subordination of third party interests, and signing of an agreement of sale.

 

(B)Phase  2  "Contingency"  -  ODA  shall  obtain,  at  landowner's  sole  expense,  the following documentation:

 

(1)A current title search performed by an authorized title insurance agency for the entire application property;

 

(2)A title insurance commitment naming the Ohio department of agriculture as an insured party;

 

(3) A comparable land appraisal, if required, in the sole discretion of the director;

 

(4) A survey, if required in the sole discretion of the director; and

 

(5)Landowner shall provide subordination agreement(s) from any party that has a legal or equitable interest in the land identified in the application, or in the title search, that the director determines is not conducive to keeping the land in agriculture.

 

(C)Costs incurred by ODA for the above items may be paid directly to ODA, or may be reimbursed to ODA through the title insurance company, as escrow agent, at closing. ODA will review the documentation for compliance with the program requirements, and if ODA determines that the documentation is satisfactory, landowner will receive written notice that they have been selected to proceed to phase 3.

 

(1)If the holder of a lien/mortgage on the property will not sign the subordination agreement prior to the signing of the deed of agricultural easement, the landowner must provide the office of farmland preservation a commitment letter from the lien/mortgage holder which states their obligations to subordinate their interests to ODA once at or prior to landowner receiving any funds from ODA.

 

(D)Phase 3 "Option to Purchase" - Landowners who have an option to purchase which confirms that the application property has been approved for grant funding, pending completion of title search, legal boundary, review, appraisal and signing of an option to purchase. Once ODA has received a signed option to purchase from the

 

 

 

applicant, the application shall proceed to phase 4.

(1) The option to purchase shall include but not be limited to:

(a) The total amount of the offer per acre, and for the entire application property;

(b) A statement that the grantor has no actual knowledge of hazardous substances or wastes, and that the grantee is held harmless from any and all liability or expense arising from violation of environmental laws and regulations;

(c) Any other provisions the director deems necessary for the landowner to be aware of prior to signing a deed of agricultural easement, and permitted pursuant to section 901.21, 901.22 or 5301.641(D)(2) of the Revised Code.

(i) Within thirty days of receipt of the option to purchase from the director, the applicant and the landowner shall sign and return the document to the director, or advise the director, in writing, of their rejection of the offer. Failure of the applicant or landowner to act within thirty days of the date the offer is postmarked shall constitute a rejection of the director's offer to purchase.

(ii) If the option to purchase is signed by all parties, then the application shall proceed to phase 4.

(E) Phase 4 "Review" - ODA shall review a title search and conduct a boundary line review, and if necessary obtain an appraisal in order to determine if application property meets the criteria to receive grant money under the program. A final determination as to the award of the grant shall be made in the sole discretion of the director.

The review phase will consist of, but not be limited to:

(1) A title search or letter of clear title; however, if the title search reveals other third party interests, not previously known, that may not be conducive to keeping the land in agriculture if exercised, a statement of subordination to the terms of the agricultural easement shall be obtained from the third party by the landowner, before proceeding to section 901-2-08 of the Ohio Administrative Code. Otherwise, a statement of no unsubordinated third party interests shall be included in the results of the title search.

(2) A property survey, if required, in accordance with paragraph (E) of rule 901-2-04 of the Administrative Code, to be conducted at the expense of the landowner.

(3) A property appraisal on the application property, if required.

(4) The applicant completing a present condition report on a form provided by the director as specified in rule 901-2-09 of the Administrative Code.

(5) Such other information as is necessary and useful to determine that the property is appropriate for inclusion, as requested by the director.

(F) Phase 5 " Execution of Deed of Easement" upon the review of documents required by this rule, the applicant landowner shall convey a deed of agricultural easement to the state of Ohio where:

(1) ODA shall:

(a) Tender a lump sum payment to title insurance company, as escrow agent for distribution to:

(i) The landowner and/or landowner's assignee(s) in the proportions directed by the landowner, or

(ii) Through an installment purchase agreement. Such agreement must be pre-approved by the director and shall include:

(a) Any installment payment terms;

(b) Dates  and  amounts  of  payments  and  to  whom  payable, including without limitation any assignee(s) of landowner;

(c) Interest rate on the outstanding balance.

Effective:                                                     02/21/2005

R.C. 119.032 review dates:                         02/01/2007

CERTIFIED ELECTRONICALLY

Certification

02/08/2005

Date

Promulgated Under:                           119.03

Statutory Authority:                           901.22(A)

Rule Amplifies:                                  901.22

Prior Effective Dates:                         2/01/02