Indiana 2023 Regular Session

Indiana House Bill HB1185 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1185
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1-12-37; IC 24-5-0.5-3; IC 32-29.5.
7	7	Synopsis: Real estate land contracts. Defines "principal dwelling land
8	8	contract" (contract) as a land contract for the sale of real property: (1)
9	9	designed for the occupancy of one to two families; and (2) that is or
10	10	will be occupied by the buyer as the buyer's principal dwelling.
11	11	Provides that a buyer who has completed the buyer's obligations under
12	12	the contract is entitled to the homestead deduction regardless of
13	13	whether the seller has conveyed title. Provides that the seller under a
14	14	contract must provide the buyer with certain information concerning
15	15	any liens that encumber the property 10 days before the contract is
16	16	executed. Sets forth disclosures that must be included in a contract.
17	17	Requires all preexisting liens on the property to be satisfied by the
18	18	seller by the end of the contract term. Provides that a contract must
19	19	permit a buyer to pay the balance owed and receive the deed at any
20	20	time. Prohibits prepayment penalties or additional charges for an early
21	21	payoff. Provides a three day cancellation period for both the buyer and
22	22	seller. Allows the seller and the buyer to transfer their respective
23	23	interests in the contract to other parties, subject to certain conditions.
24	24	Requires the seller to provide the buyer with an annual statement of
25	25	account. Sets forth certain rights and responsibilities of the parties upon
26	26	default by either the buyer or the seller. Sets forth acts and omissions
27	27	constituting violations and establishes remedies for these violations.
28	28	Provides that a violation of these provisions constitutes an incurable
29	29	deceptive act that is actionable by the attorney general under the
30	30	deceptive consumer sales act. Authorizes the attorney general, in
31	31	consultation with the department of financial institutions, to adopt rules
32	32	to implement these provisions. Requires that the executed contract or
33	33	a memorandum of land contract be notarized.
34	34	Effective: Upon passage.
35	35	Moed, Clere
36	36	January 10, 2023, read first time and referred to Committee on Judiciary.
37	37	2023 IN 1185—LS 6726/DI 149 Introduced
38	38	First Regular Session of the 123rd General Assembly (2023)
39	39	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
40	40	Constitution) is being amended, the text of the existing provision will appear in this style type,
41	41	additions will appear in this style type, and deletions will appear in this style type.
42	42	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
43	43	provision adopted), the text of the new provision will appear in this style type. Also, the
44	44	word NEW will appear in that style type in the introductory clause of each SECTION that adds
45	45	a new provision to the Indiana Code or the Indiana Constitution.
46	46	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
47	47	between statutes enacted by the 2022 Regular Session of the General Assembly.
48	48	HOUSE BILL No. 1185
49	49	A BILL FOR AN ACT to amend the Indiana Code concerning
50	50	property.
51	51	Be it enacted by the General Assembly of the State of Indiana:
52	52	1 SECTION 1. IC 6-1.1-12-37, AS AMENDED BY P.L.174-2022,
53	53	2 SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
54	54	3 UPON PASSAGE]: Sec. 37. (a) The following definitions apply
55	55	4 throughout this section:
56	56	5 (1) "Dwelling" means any of the following:
57	57	6 (A) Residential real property improvements that an individual
58	58	7 uses as the individual's residence, including a house or garage.
59	59	8 (B) A mobile home that is not assessed as real property that an
60	60	9 individual uses as the individual's residence.
61	61	10 (C) A manufactured home that is not assessed as real property
62	62	11 that an individual uses as the individual's residence.
63	63	12 (2) "Homestead" means an individual's principal place of
64	64	13 residence:
65	65	14 (A) that is located in Indiana;
66	66	15 (B) that:
67	67	16 (i) the individual owns;
68	68	17 (ii) the individual is buying under a contract recorded in the
69	69	2023 IN 1185—LS 6726/DI 149 2
70	70	1 county recorder's office, or evidenced by a memorandum of
71	71	2 contract recorded in the county recorder's office under
72	72	3 IC 36-2-11-20, that provides that the individual is to pay the
73	73	4 property taxes on the residence, and that obligates the owner
74	74	5 to convey title to the individual upon completion of all of the
75	75	6 individual's contract obligations;
76	76	7 (iii) the individual is entitled to occupy as a
77	77	8 tenant-stockholder (as defined in 26 U.S.C. 216) of a
78	78	9 cooperative housing corporation (as defined in 26 U.S.C.
79	79	10 216); or
80	80	11 (iv) is a residence described in section 17.9 of this chapter
81	81	12 that is owned by a trust if the individual is an individual
82	82	13 described in section 17.9 of this chapter; and
83	83	14 (C) that consists of a dwelling and the real estate, not
84	84	15 exceeding one (1) acre, that immediately surrounds that
85	85	16 dwelling.
86	86	17 For purposes of clause (B)(ii), the term includes the principal
87	87	18 residence of an individual who has completed all of the
88	88	19 individual's obligations under a principal dwelling land
89	89	20 contract (as defined in IC 32-29.5-2-3), regardless of whether
90	90	21 or not the seller has conveyed the title. Except as provided in
91	91	22 subsection (k), the term does not include property owned by a
92	92	23 corporation, partnership, limited liability company, or other entity
93	93	24 not described in this subdivision.
94	94	25 (b) Each year a homestead is eligible for a standard deduction from
95	95	26 the assessed value of the homestead for an assessment date. Except as
96	96	27 provided in subsection (p), the deduction provided by this section
97	97	28 applies to property taxes first due and payable for an assessment date
98	98	29 only if an individual has an interest in the homestead described in
99	99	30 subsection (a)(2)(B) on:
100	100	31 (1) the assessment date; or
101	101	32 (2) any date in the same year after an assessment date that a
102	102	33 statement is filed under subsection (e) or section 44 of this
103	103	34 chapter, if the property consists of real property.
104	104	35 If more than one (1) individual or entity qualifies property as a
105	105	36 homestead under subsection (a)(2)(B) for an assessment date, only one
106	106	37 (1) standard deduction from the assessed value of the homestead may
107	107	38 be applied for the assessment date. Subject to subsection (c), the
108	108	39 auditor of the county shall record and make the deduction for the
109	109	40 individual or entity qualifying for the deduction.
110	110	41 (c) Except as provided in section 40.5 of this chapter, the total
111	111	42 amount of the deduction that a person may receive under this section
112	112	2023 IN 1185—LS 6726/DI 149 3
113	113	1 for a particular year is the lesser of:
114	114	2 (1) sixty percent (60%) of the assessed value of the real property,
115	115	3 mobile home not assessed as real property, or manufactured home
116	116	4 not assessed as real property; or
117	117	5 (2) for assessment dates:
118	118	6 (A) before January 1, 2023, forty-five thousand dollars
119	119	7 ($45,000); or
120	120	8 (B) after December 31, 2022, forty-eight thousand dollars
121	121	9 ($48,000).
122	122	10 (d) A person who has sold real property, a mobile home not assessed
123	123	11 as real property, or a manufactured home not assessed as real property
124	124	12 to another person under a contract that provides that the contract buyer
125	125	13 is to pay the property taxes on the real property, mobile home, or
126	126	14 manufactured home may not claim the deduction provided under this
127	127	15 section with respect to that real property, mobile home, or
128	128	16 manufactured home.
129	129	17 (e) Except as provided in sections 17.8 and 44 of this chapter and
130	130	18 subject to section 45 of this chapter, an individual who desires to claim
131	131	19 the deduction provided by this section must file a certified statement on
132	132	20 forms prescribed by the department of local government finance, with
133	133	21 the auditor of the county in which the homestead is located. The
134	134	22 statement must include:
135	135	23 (1) the parcel number or key number of the property and the name
136	136	24 of the city, town, or township in which the property is located;
137	137	25 (2) the name of any other location in which the applicant or the
138	138	26 applicant's spouse owns, is buying, or has a beneficial interest in
139	139	27 residential real property;
140	140	28 (3) the names of:
141	141	29 (A) the applicant and the applicant's spouse (if any):
142	142	30 (i) as the names appear in the records of the United States
143	143	31 Social Security Administration for the purposes of the
144	144	32 issuance of a Social Security card and Social Security
145	145	33 number; or
146	146	34 (ii) that they use as their legal names when they sign their
147	147	35 names on legal documents;
148	148	36 if the applicant is an individual; or
149	149	37 (B) each individual who qualifies property as a homestead
150	150	38 under subsection (a)(2)(B) and the individual's spouse (if any):
151	151	39 (i) as the names appear in the records of the United States
152	152	40 Social Security Administration for the purposes of the
153	153	41 issuance of a Social Security card and Social Security
154	154	42 number; or
155	155	2023 IN 1185—LS 6726/DI 149 4
156	156	1 (ii) that they use as their legal names when they sign their
157	157	2 names on legal documents;
158	158	3 if the applicant is not an individual; and
159	159	4 (4) either:
160	160	5 (A) the last five (5) digits of the applicant's Social Security
161	161	6 number and the last five (5) digits of the Social Security
162	162	7 number of the applicant's spouse (if any); or
163	163	8 (B) if the applicant or the applicant's spouse (if any) does not
164	164	9 have a Social Security number, any of the following for that
165	165	10 individual:
166	166	11 (i) The last five (5) digits of the individual's driver's license
167	167	12 number.
168	168	13 (ii) The last five (5) digits of the individual's state
169	169	14 identification card number.
170	170	15 (iii) The last five (5) digits of a preparer tax identification
171	171	16 number that is obtained by the individual through the
172	172	17 Internal Revenue Service of the United States.
173	173	18 (iv) If the individual does not have a driver's license, a state
174	174	19 identification card, or an Internal Revenue Service preparer
175	175	20 tax identification number, the last five (5) digits of a control
176	176	21 number that is on a document issued to the individual by the
177	177	22 United States government.
178	178	23 If a form or statement provided to the county auditor under this section,
179	179	24 IC 6-1.1-22-8.1, or IC 6-1.1-22.5-12 includes the telephone number or
180	180	25 part or all of the Social Security number of a party or other number
181	181	26 described in subdivision (4)(B) of a party, the telephone number and
182	182	27 the Social Security number or other number described in subdivision
183	183	28 (4)(B) included are confidential. The statement may be filed in person
184	184	29 or by mail. If the statement is mailed, the mailing must be postmarked
185	185	30 on or before the last day for filing. The statement applies for that first
186	186	31 year and any succeeding year for which the deduction is allowed. To
187	187	32 obtain the deduction for a desired calendar year in which property taxes
188	188	33 are first due and payable, the statement must be completed and dated
189	189	34 in the immediately preceding calendar year and filed with the county
190	190	35 auditor on or before January 5 of the calendar year in which the
191	191	36 property taxes are first due and payable.
192	192	37 (f) Except as provided in subsection (n), if a person who is
193	193	38 receiving, or seeks to receive, the deduction provided by this section in
194	194	39 the person's name:
195	195	40 (1) changes the use of the individual's property so that part or all
196	196	41 of the property no longer qualifies for the deduction under this
197	197	42 section; or
198	198	2023 IN 1185—LS 6726/DI 149 5
199	199	1 (2) is not eligible for a deduction under this section because the
200	200	2 person is already receiving:
201	201	3 (A) a deduction under this section in the person's name as an
202	202	4 individual or a spouse; or
203	203	5 (B) a deduction under the law of another state that is
204	204	6 equivalent to the deduction provided by this section;
205	205	7 the person must file a certified statement with the auditor of the county,
206	206	8 notifying the auditor of the person's ineligibility, not more than sixty
207	207	9 (60) days after the date of the change in eligibility. A person who fails
208	208	10 to file the statement required by this subsection may, under
209	209	11 IC 6-1.1-36-17, be liable for any additional taxes that would have been
210	210	12 due on the property if the person had filed the statement as required by
211	211	13 this subsection plus a civil penalty equal to ten percent (10%) of the
212	212	14 additional taxes due. The civil penalty imposed under this subsection
213	213	15 is in addition to any interest and penalties for a delinquent payment that
214	214	16 might otherwise be due. One percent (1%) of the total civil penalty
215	215	17 collected under this subsection shall be transferred by the county to the
216	216	18 department of local government finance for use by the department in
217	217	19 establishing and maintaining the homestead property data base under
218	218	20 subsection (i) and, to the extent there is money remaining, for any other
219	219	21 purposes of the department. This amount becomes part of the property
220	220	22 tax liability for purposes of this article.
221	221	23 (g) The department of local government finance may adopt rules or
222	222	24 guidelines concerning the application for a deduction under this
223	223	25 section.
224	224	26 (h) This subsection does not apply to property in the first year for
225	225	27 which a deduction is claimed under this section if the sole reason that
226	226	28 a deduction is claimed on other property is that the individual or
227	227	29 married couple maintained a principal residence at the other property
228	228	30 on the assessment date in the same year in which an application for a
229	229	31 deduction is filed under this section or, if the application is for a
230	230	32 homestead that is assessed as personal property, on the assessment date
231	231	33 in the immediately preceding year and the individual or married couple
232	232	34 is moving the individual's or married couple's principal residence to the
233	233	35 property that is the subject of the application. Except as provided in
234	234	36 subsection (n), the county auditor may not grant an individual or a
235	235	37 married couple a deduction under this section if:
236	236	38 (1) the individual or married couple, for the same year, claims the
237	237	39 deduction on two (2) or more different applications for the
238	238	40 deduction; and
239	239	41 (2) the applications claim the deduction for different property.
240	240	42 (i) The department of local government finance shall provide secure
241	241	2023 IN 1185—LS 6726/DI 149 6
242	242	1 access to county auditors to a homestead property data base that
243	243	2 includes access to the homestead owner's name and the numbers
244	244	3 required from the homestead owner under subsection (e)(4) for the sole
245	245	4 purpose of verifying whether an owner is wrongly claiming a deduction
246	246	5 under this chapter or a credit under IC 6-1.1-20.4, IC 6-1.1-20.6, or
247	247	6 IC 6-3.6-5 (after December 31, 2016). Each county auditor shall submit
248	248	7 data on deductions applicable to the current tax year on or before
249	249	8 March 15 of each year in a manner prescribed by the department of
250	250	9 local government finance.
251	251	10 (j) A county auditor may require an individual to provide evidence
252	252	11 proving that the individual's residence is the individual's principal place
253	253	12 of residence as claimed in the certified statement filed under subsection
254	254	13 (e). The county auditor may limit the evidence that an individual is
255	255	14 required to submit to a state income tax return, a valid driver's license,
256	256	15 or a valid voter registration card showing that the residence for which
257	257	16 the deduction is claimed is the individual's principal place of residence.
258	258	17 The department of local government finance shall work with county
259	259	18 auditors to develop procedures to determine whether a property owner
260	260	19 that is claiming a standard deduction or homestead credit is not eligible
261	261	20 for the standard deduction or homestead credit because the property
262	262	21 owner's principal place of residence is outside Indiana.
263	263	22 (k) As used in this section, "homestead" includes property that
264	264	23 satisfies each of the following requirements:
265	265	24 (1) The property is located in Indiana and consists of a dwelling
266	266	25 and the real estate, not exceeding one (1) acre, that immediately
267	267	26 surrounds that dwelling.
268	268	27 (2) The property is the principal place of residence of an
269	269	28 individual.
270	270	29 (3) The property is owned by an entity that is not described in
271	271	30 subsection (a)(2)(B).
272	272	31 (4) The individual residing on the property is a shareholder,
273	273	32 partner, or member of the entity that owns the property.
274	274	33 (5) The property was eligible for the standard deduction under
275	275	34 this section on March 1, 2009.
276	276	35 (l) If a county auditor terminates a deduction for property described
277	277	36 in subsection (k) with respect to property taxes that are:
278	278	37 (1) imposed for an assessment date in 2009; and
279	279	38 (2) first due and payable in 2010;
280	280	39 on the grounds that the property is not owned by an entity described in
281	281	40 subsection (a)(2)(B), the county auditor shall reinstate the deduction if
282	282	41 the taxpayer provides proof that the property is eligible for the
283	283	42 deduction in accordance with subsection (k) and that the individual
284	284	2023 IN 1185—LS 6726/DI 149 7
285	285	1 residing on the property is not claiming the deduction for any other
286	286	2 property.
287	287	3 (m) For assessment dates after 2009, the term "homestead" includes:
288	288	4 (1) a deck or patio;
289	289	5 (2) a gazebo; or
290	290	6 (3) another residential yard structure, as defined in rules adopted
291	291	7 by the department of local government finance (other than a
292	292	8 swimming pool);
293	293	9 that is assessed as real property and attached to the dwelling.
294	294	10 (n) A county auditor shall grant an individual a deduction under this
295	295	11 section regardless of whether the individual and the individual's spouse
296	296	12 claim a deduction on two (2) different applications and each
297	297	13 application claims a deduction for different property if the property
298	298	14 owned by the individual's spouse is located outside Indiana and the
299	299	15 individual files an affidavit with the county auditor containing the
300	300	16 following information:
301	301	17 (1) The names of the county and state in which the individual's
302	302	18 spouse claims a deduction substantially similar to the deduction
303	303	19 allowed by this section.
304	304	20 (2) A statement made under penalty of perjury that the following
305	305	21 are true:
306	306	22 (A) That the individual and the individual's spouse maintain
307	307	23 separate principal places of residence.
308	308	24 (B) That neither the individual nor the individual's spouse has
309	309	25 an ownership interest in the other's principal place of
310	310	26 residence.
311	311	27 (C) That neither the individual nor the individual's spouse has,
312	312	28 for that same year, claimed a standard or substantially similar
313	313	29 deduction for any property other than the property maintained
314	314	30 as a principal place of residence by the respective individuals.
315	315	31 A county auditor may require an individual or an individual's spouse to
316	316	32 provide evidence of the accuracy of the information contained in an
317	317	33 affidavit submitted under this subsection. The evidence required of the
318	318	34 individual or the individual's spouse may include state income tax
319	319	35 returns, excise tax payment information, property tax payment
320	320	36 information, driver license information, and voter registration
321	321	37 information.
322	322	38 (o) If:
323	323	39 (1) a property owner files a statement under subsection (e) to
324	324	40 claim the deduction provided by this section for a particular
325	325	41 property; and
326	326	42 (2) the county auditor receiving the filed statement determines
327	327	2023 IN 1185—LS 6726/DI 149 8
328	328	1 that the property owner's property is not eligible for the deduction;
329	329	2 the county auditor shall inform the property owner of the county
330	330	3 auditor's determination in writing. If a property owner's property is not
331	331	4 eligible for the deduction because the county auditor has determined
332	332	5 that the property is not the property owner's principal place of
333	333	6 residence, the property owner may appeal the county auditor's
334	334	7 determination as provided in IC 6-1.1-15. The county auditor shall
335	335	8 inform the property owner of the owner's right to appeal when the
336	336	9 county auditor informs the property owner of the county auditor's
337	337	10 determination under this subsection.
338	338	11 (p) An individual is entitled to the deduction under this section for
339	339	12 a homestead for a particular assessment date if:
340	340	13 (1) either:
341	341	14 (A) the individual's interest in the homestead as described in
342	342	15 subsection (a)(2)(B) is conveyed to the individual after the
343	343	16 assessment date, but within the calendar year in which the
344	344	17 assessment date occurs; or
345	345	18 (B) the individual contracts to purchase the homestead after
346	346	19 the assessment date, but within the calendar year in which the
347	347	20 assessment date occurs;
348	348	21 (2) on the assessment date:
349	349	22 (A) the property on which the homestead is currently located
350	350	23 was vacant land; or
351	351	24 (B) the construction of the dwelling that constitutes the
352	352	25 homestead was not completed; and
353	353	26 (3) either:
354	354	27 (A) the individual files the certified statement required by
355	355	28 subsection (e); or
356	356	29 (B) a sales disclosure form that meets the requirements of
357	357	30 section 44 of this chapter is submitted to the county assessor
358	358	31 on or before December 31 of the calendar year for the
359	359	32 individual's purchase of the homestead.
360	360	33 An individual who satisfies the requirements of subdivisions (1)
361	361	34 through (3) is entitled to the deduction under this section for the
362	362	35 homestead for the assessment date, even if on the assessment date the
363	363	36 property on which the homestead is currently located was vacant land
364	364	37 or the construction of the dwelling that constitutes the homestead was
365	365	38 not completed. The county auditor shall apply the deduction for the
366	366	39 assessment date and for the assessment date in any later year in which
367	367	40 the homestead remains eligible for the deduction. A homestead that
368	368	41 qualifies for the deduction under this section as provided in this
369	369	42 subsection is considered a homestead for purposes of section 37.5 of
370	370	2023 IN 1185—LS 6726/DI 149 9
371	371	1 this chapter and IC 6-1.1-20.6.
372	372	2 (q) This subsection applies to an application for the deduction
373	373	3 provided by this section that is filed for an assessment date occurring
374	374	4 after December 31, 2013. Notwithstanding any other provision of this
375	375	5 section, an individual buying a mobile home that is not assessed as real
376	376	6 property or a manufactured home that is not assessed as real property
377	377	7 under a contract providing that the individual is to pay the property
378	378	8 taxes on the mobile home or manufactured home is not entitled to the
379	379	9 deduction provided by this section unless the parties to the contract
380	380	10 comply with IC 9-17-6-17.
381	381	11 (r) This subsection:
382	382	12 (1) applies to an application for the deduction provided by this
383	383	13 section that is filed for an assessment date occurring after
384	384	14 December 31, 2013; and
385	385	15 (2) does not apply to an individual described in subsection (q).
386	386	16 The owner of a mobile home that is not assessed as real property or a
387	387	17 manufactured home that is not assessed as real property must attach a
388	388	18 copy of the owner's title to the mobile home or manufactured home to
389	389	19 the application for the deduction provided by this section.
390	390	20 (s) For assessment dates after 2013, the term "homestead" includes
391	391	21 property that is owned by an individual who:
392	392	22 (1) is serving on active duty in any branch of the armed forces of
393	393	23 the United States;
394	394	24 (2) was ordered to transfer to a location outside Indiana; and
395	395	25 (3) was otherwise eligible, without regard to this subsection, for
396	396	26 the deduction under this section for the property for the
397	397	27 assessment date immediately preceding the transfer date specified
398	398	28 in the order described in subdivision (2).
399	399	29 For property to qualify under this subsection for the deduction provided
400	400	30 by this section, the individual described in subdivisions (1) through (3)
401	401	31 must submit to the county auditor a copy of the individual's transfer
402	402	32 orders or other information sufficient to show that the individual was
403	403	33 ordered to transfer to a location outside Indiana. The property continues
404	404	34 to qualify for the deduction provided by this section until the individual
405	405	35 ceases to be on active duty, the property is sold, or the individual's
406	406	36 ownership interest is otherwise terminated, whichever occurs first.
407	407	37 Notwithstanding subsection (a)(2), the property remains a homestead
408	408	38 regardless of whether the property continues to be the individual's
409	409	39 principal place of residence after the individual transfers to a location
410	410	40 outside Indiana. The property continues to qualify as a homestead
411	411	41 under this subsection if the property is leased while the individual is
412	412	42 away from Indiana and is serving on active duty, if the individual has
413	413	2023 IN 1185—LS 6726/DI 149 10
414	414	1 lived at the property at any time during the past ten (10) years.
415	415	2 Otherwise, the property ceases to qualify as a homestead under this
416	416	3 subsection if the property is leased while the individual is away from
417	417	4 Indiana. Property that qualifies as a homestead under this subsection
418	418	5 shall also be construed as a homestead for purposes of section 37.5 of
419	419	6 this chapter.
420	420	7 SECTION 2. IC 24-5-0.5-3, AS AMENDED BY P.L.34-2022,
421	421	8 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
422	422	9 UPON PASSAGE]: Sec. 3. (a) A supplier may not commit an unfair,
423	423	10 abusive, or deceptive act, omission, or practice in connection with a
424	424	11 consumer transaction. Such an act, omission, or practice by a supplier
425	425	12 is a violation of this chapter whether it occurs before, during, or after
426	426	13 the transaction. An act, omission, or practice prohibited by this section
427	427	14 includes both implicit and explicit misrepresentations.
428	428	15 (b) Without limiting the scope of subsection (a), the following acts,
429	429	16 and the following representations as to the subject matter of a
430	430	17 consumer transaction, made orally, in writing, or by electronic
431	431	18 communication, by a supplier, are deceptive acts:
432	432	19 (1) That such subject of a consumer transaction has sponsorship,
433	433	20 approval, performance, characteristics, accessories, uses, or
434	434	21 benefits it does not have which the supplier knows or should
435	435	22 reasonably know it does not have.
436	436	23 (2) That such subject of a consumer transaction is of a particular
437	437	24 standard, quality, grade, style, or model, if it is not and if the
438	438	25 supplier knows or should reasonably know that it is not.
439	439	26 (3) That such subject of a consumer transaction is new or unused,
440	440	27 if it is not and if the supplier knows or should reasonably know
441	441	28 that it is not.
442	442	29 (4) That such subject of a consumer transaction will be supplied
443	443	30 to the public in greater quantity than the supplier intends or
444	444	31 reasonably expects.
445	445	32 (5) That replacement or repair constituting the subject of a
446	446	33 consumer transaction is needed, if it is not and if the supplier
447	447	34 knows or should reasonably know that it is not.
448	448	35 (6) That a specific price advantage exists as to such subject of a
449	449	36 consumer transaction, if it does not and if the supplier knows or
450	450	37 should reasonably know that it does not.
451	451	38 (7) That the supplier has a sponsorship, approval, or affiliation in
452	452	39 such consumer transaction the supplier does not have, and which
453	453	40 the supplier knows or should reasonably know that the supplier
454	454	41 does not have.
455	455	42 (8) That such consumer transaction involves or does not involve
456	456	2023 IN 1185—LS 6726/DI 149 11
457	457	1 a warranty, a disclaimer of warranties, or other rights, remedies,
458	458	2 or obligations, if the representation is false and if the supplier
459	459	3 knows or should reasonably know that the representation is false.
460	460	4 (9) That the consumer will receive a rebate, discount, or other
461	461	5 benefit as an inducement for entering into a sale or lease in return
462	462	6 for giving the supplier the names of prospective consumers or
463	463	7 otherwise helping the supplier to enter into other consumer
464	464	8 transactions, if earning the benefit, rebate, or discount is
465	465	9 contingent upon the occurrence of an event subsequent to the time
466	466	10 the consumer agrees to the purchase or lease.
467	467	11 (10) That the supplier is able to deliver or complete the subject of
468	468	12 the consumer transaction within a stated period of time, when the
469	469	13 supplier knows or should reasonably know the supplier could not.
470	470	14 If no time period has been stated by the supplier, there is a
471	471	15 presumption that the supplier has represented that the supplier
472	472	16 will deliver or complete the subject of the consumer transaction
473	473	17 within a reasonable time, according to the course of dealing or the
474	474	18 usage of the trade.
475	475	19 (11) That the consumer will be able to purchase the subject of the
476	476	20 consumer transaction as advertised by the supplier, if the supplier
477	477	21 does not intend to sell it.
478	478	22 (12) That the replacement or repair constituting the subject of a
479	479	23 consumer transaction can be made by the supplier for the estimate
480	480	24 the supplier gives a customer for the replacement or repair, if the
481	481	25 specified work is completed and:
482	482	26 (A) the cost exceeds the estimate by an amount equal to or
483	483	27 greater than ten percent (10%) of the estimate;
484	484	28 (B) the supplier did not obtain written permission from the
485	485	29 customer to authorize the supplier to complete the work even
486	486	30 if the cost would exceed the amounts specified in clause (A);
487	487	31 (C) the total cost for services and parts for a single transaction
488	488	32 is more than seven hundred fifty dollars ($750); and
489	489	33 (D) the supplier knew or reasonably should have known that
490	490	34 the cost would exceed the estimate in the amounts specified in
491	491	35 clause (A).
492	492	36 (13) That the replacement or repair constituting the subject of a
493	493	37 consumer transaction is needed, and that the supplier disposes of
494	494	38 the part repaired or replaced earlier than seventy-two (72) hours
495	495	39 after both:
496	496	40 (A) the customer has been notified that the work has been
497	497	41 completed; and
498	498	42 (B) the part repaired or replaced has been made available for
499	499	2023 IN 1185—LS 6726/DI 149 12
500	500	1 examination upon the request of the customer.
501	501	2 (14) Engaging in the replacement or repair of the subject of a
502	502	3 consumer transaction if the consumer has not authorized the
503	503	4 replacement or repair, and if the supplier knows or should
504	504	5 reasonably know that it is not authorized.
505	505	6 (15) The act of misrepresenting the geographic location of the
506	506	7 supplier by listing an alternate business name or an assumed
507	507	8 business name (as described in IC 23-0.5-3-4) in a local telephone
508	508	9 directory if:
509	509	10 (A) the name misrepresents the supplier's geographic location;
510	510	11 (B) the listing fails to identify the locality and state of the
511	511	12 supplier's business;
512	512	13 (C) calls to the local telephone number are routinely forwarded
513	513	14 or otherwise transferred to a supplier's business location that
514	514	15 is outside the calling area covered by the local telephone
515	515	16 directory; and
516	516	17 (D) the supplier's business location is located in a county that
517	517	18 is not contiguous to a county in the calling area covered by the
518	518	19 local telephone directory.
519	519	20 (16) The act of listing an alternate business name or assumed
520	520	21 business name (as described in IC 23-0.5-3-4) in a directory
521	521	22 assistance data base if:
522	522	23 (A) the name misrepresents the supplier's geographic location;
523	523	24 (B) calls to the local telephone number are routinely forwarded
524	524	25 or otherwise transferred to a supplier's business location that
525	525	26 is outside the local calling area; and
526	526	27 (C) the supplier's business location is located in a county that
527	527	28 is not contiguous to a county in the local calling area.
528	528	29 (17) The violation by a supplier of IC 24-3-4 concerning
529	529	30 cigarettes for import or export.
530	530	31 (18) The act of a supplier in knowingly selling or reselling a
531	531	32 product to a consumer if the product has been recalled, whether
532	532	33 by the order of a court or a regulatory body, or voluntarily by the
533	533	34 manufacturer, distributor, or retailer, unless the product has been
534	534	35 repaired or modified to correct the defect that was the subject of
535	535	36 the recall.
536	536	37 (19) The violation by a supplier of 47 U.S.C. 227, including any
537	537	38 rules or regulations issued under 47 U.S.C. 227.
538	538	39 (20) The violation by a supplier of the federal Fair Debt
539	539	40 Collection Practices Act (15 U.S.C. 1692 et seq.), including any
540	540	41 rules or regulations issued under the federal Fair Debt Collection
541	541	42 Practices Act (15 U.S.C. 1692 et seq.).
542	542	2023 IN 1185—LS 6726/DI 149 13
543	543	1 (21) A violation of IC 24-5-7 (concerning health spa services), as
544	544	2 set forth in IC 24-5-7-17.
545	545	3 (22) A violation of IC 24-5-8 (concerning business opportunity
546	546	4 transactions), as set forth in IC 24-5-8-20.
547	547	5 (23) A violation of IC 24-5-10 (concerning home consumer
548	548	6 transactions), as set forth in IC 24-5-10-18.
549	549	7 (24) A violation of IC 24-5-11 (concerning real property
550	550	8 improvement contracts), as set forth in IC 24-5-11-14.
551	551	9 (25) A violation of IC 24-5-12 (concerning telephone
552	552	10 solicitations), as set forth in IC 24-5-12-23.
553	553	11 (26) A violation of IC 24-5-13.5 (concerning buyback motor
554	554	12 vehicles), as set forth in IC 24-5-13.5-14.
555	555	13 (27) A violation of IC 24-5-14 (concerning automatic
556	556	14 dialing-announcing devices), as set forth in IC 24-5-14-13.
557	557	15 (28) A violation of IC 24-5-15 (concerning credit services
558	558	16 organizations), as set forth in IC 24-5-15-11.
559	559	17 (29) A violation of IC 24-5-16 (concerning unlawful motor
560	560	18 vehicle subleasing), as set forth in IC 24-5-16-18.
561	561	19 (30) A violation of IC 24-5-17 (concerning environmental
562	562	20 marketing claims), as set forth in IC 24-5-17-14.
563	563	21 (31) A violation of IC 24-5-19 (concerning deceptive commercial
564	564	22 solicitation), as set forth in IC 24-5-19-11.
565	565	23 (32) A violation of IC 24-5-21 (concerning prescription drug
566	566	24 discount cards), as set forth in IC 24-5-21-7.
567	567	25 (33) A violation of IC 24-5-23.5-7 (concerning real estate
568	568	26 appraisals), as set forth in IC 24-5-23.5-9.
569	569	27 (34) A violation of IC 24-5-26 (concerning identity theft), as set
570	570	28 forth in IC 24-5-26-3.
571	571	29 (35) A violation of IC 24-5.5 (concerning mortgage rescue fraud),
572	572	30 as set forth in IC 24-5.5-6-1.
573	573	31 (36) A violation of IC 24-8 (concerning promotional gifts and
574	574	32 contests), as set forth in IC 24-8-6-3.
575	575	33 (37) A violation of IC 21-18.5-6 (concerning representations
576	576	34 made by a postsecondary credit bearing proprietary educational
577	577	35 institution), as set forth in IC 21-18.5-6-22.5.
578	578	36 (38) A violation of IC 24-5-15.5 (concerning collection actions of
579	579	37 a plaintiff debt buyer), as set forth in IC 24-5-15.5-6.
580	580	38 (39) A violation of IC 24-14 (concerning towing services), as set
581	581	39 forth in IC 24-14-10-1.
582	582	40 (40) A violation of IC 24-5-14.5 (concerning misleading or
583	583	41 inaccurate caller identification information), as set forth in
584	584	42 IC 24-5-14.5-12.
585	585	2023 IN 1185—LS 6726/DI 149 14
586	586	1 (41) A violation of IC 24-5-27 (concerning intrastate inmate
587	587	2 calling services), as set forth in IC 24-5-27-27.
588	588	3 (42) A violation of IC 32-29.5 (concerning principal dwelling
589	589	4 land contracts), as set forth in IC 32-29.5-6-4.
590	590	5 (c) Any representations on or within a product or its packaging or
591	591	6 in advertising or promotional materials which would constitute a
592	592	7 deceptive act shall be the deceptive act both of the supplier who places
593	593	8 such representation thereon or therein, or who authored such materials,
594	594	9 and such other suppliers who shall state orally or in writing that such
595	595	10 representation is true if such other supplier shall know or have reason
596	596	11 to know that such representation was false.
597	597	12 (d) If a supplier shows by a preponderance of the evidence that an
598	598	13 act resulted from a bona fide error notwithstanding the maintenance of
599	599	14 procedures reasonably adopted to avoid the error, such act shall not be
600	600	15 deceptive within the meaning of this chapter.
601	601	16 (e) It shall be a defense to any action brought under this chapter that
602	602	17 the representation constituting an alleged deceptive act was one made
603	603	18 in good faith by the supplier without knowledge of its falsity and in
604	604	19 reliance upon the oral or written representations of the manufacturer,
605	605	20 the person from whom the supplier acquired the product, any testing
606	606	21 organization, or any other person provided that the source thereof is
607	607	22 disclosed to the consumer.
608	608	23 (f) For purposes of subsection (b)(12), a supplier that provides
609	609	24 estimates before performing repair or replacement work for a customer
610	610	25 shall give the customer a written estimate itemizing as closely as
611	611	26 possible the price for labor and parts necessary for the specific job
612	612	27 before commencing the work.
613	613	28 (g) For purposes of subsection (b)(15) and (b)(16), a telephone
614	614	29 company or other provider of a telephone directory or directory
615	615	30 assistance service or its officer or agent is immune from liability for
616	616	31 publishing the listing of an alternate business name or assumed
617	617	32 business name of a supplier in its directory or directory assistance data
618	618	33 base unless the telephone company or other provider of a telephone
619	619	34 directory or directory assistance service is the same person as the
620	620	35 supplier who has committed the deceptive act.
621	621	36 (h) For purposes of subsection (b)(18), it is an affirmative defense
622	622	37 to any action brought under this chapter that the product has been
623	623	38 altered by a person other than the defendant to render the product
624	624	39 completely incapable of serving its original purpose.
625	625	40 SECTION 3. IC 32-29.5 IS ADDED TO THE INDIANA CODE AS
626	626	41 A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE UPON
627	627	42 PASSAGE]:
628	628	2023 IN 1185—LS 6726/DI 149 15
629	629	1 ARTICLE 29.5. PRINCIPAL DWELLING LAND
630	630	2 CONTRACTS
631	631	3 Chapter 1. Application
632	632	4 Sec. 1. This article applies only to a principal dwelling land
633	633	5 contract entered into after June 30, 2023.
634	634	6 Sec. 2. This article applies to a seller who sells real property
635	635	7 under a principal dwelling land contract.
636	636	8 Sec. 3. This article does not apply to the following:
637	637	9 (1) A depository institution regulated by a state or federal
638	638	10 agency, and subsidiaries owned and controlled by the
639	639	11 depository institution.
640	640	12 (2) A first lien mortgage lender licensed under IC 24-4.4, and
641	641	13 subsidiaries owned and controlled by the first lien mortgage
642	642	14 lender.
643	643	15 (3) Transactions between family members.
644	644	16 Chapter 2. Definitions
645	645	17 Sec. 1. The definitions set forth in this chapter apply throughout
646	646	18 this article.
647	647	19 Sec. 2. "Land contract" means a contract for the sale of real
648	648	20 estate in which the seller of the real estate retains legal title to the
649	649	21 real estate until the total contract price is paid by the buyer.
650	650	22 Sec. 3. (a) "Principal dwelling land contract" means a land
651	651	23 contract for the sale of real property:
652	652	24 (1) designed primarily for the occupancy of one (1) to two (2)
653	653	25 families; and
654	654	26 (2) that is or will be occupied by a buyer as the buyer's
655	655	27 principal dwelling.
656	656	28 (b) The term does not include a land contract for the sale of:
657	657	29 (1) more than ten (10) acres of land; or
658	658	30 (2) vacant land.
659	659	31 Chapter 3. Principal Dwelling Land Contracts and Disclosures
660	660	32 Sec. 1. (a) At least ten (10) days before a principal dwelling land
661	661	33 contract is executed by the parties, the seller shall provide the
662	662	34 buyer with a complete record of any liens encumbering the
663	663	35 property, including any property tax liens or special assessment
664	664	36 liens.
665	665	37 (b) The principal dwelling contract shall indicate the date by
666	666	38 which the record of any liens as required by this section was
667	667	39 provided to the buyer.
668	668	40 Sec. 2. A principal dwelling land contract must include the
669	669	41 following information:
670	670	42 (1) If the real property is encumbered by one (1) or more
671	671	2023 IN 1185—LS 6726/DI 149 16
672	672	1 liens, a statement of the amount of the liens and an agreement
673	673	2 by the seller that the seller shall use a specified portion of
674	674	3 funds received from the buyer under the contract to satisfy
675	675	4 the liens.
676	676	5 (2) The sales price, address, and legal description of the
677	677	6 residential real estate that is the subject of the contract.
678	678	7 (3) A statement of the amount of any down payment or
679	679	8 purchase option fee applied to the purchase price, including
680	680	9 the resulting principal amount remaining to be paid by the
681	681	10 buyer for the remainder of the contract.
682	682	11 (4) The term of the contract expressed in years and months,
683	683	12 and the total number of periodic payments due under the
684	684	13 contract.
685	685	14 (5) The amount of any balloon payment, and when the balloon
686	686	15 payment is due.
687	687	16 (6) A statement setting forth whether the seller or buyer is
688	688	17 responsible for paying real estate taxes and insurance with
689	689	18 respect to the real estate, including the procedures necessary
690	690	19 for the timely invoicing and payment of those amounts. In any
691	691	20 case in which responsibility for the payment of real estate
692	692	21 taxes and insurance with respect to the property is not clearly
693	693	22 set forth in the contract, the seller:
694	694	23 (A) is responsible for paying real estate taxes and
695	695	24 insurance when due; and
696	696	25 (B) may not seek reimbursement for those amounts from
697	697	26 the buyer.
698	698	27 (7) Subject to subdivision (6), the amount that will be charged
699	699	28 periodically, if any, during the first year of the contract to pay
700	700	29 real estate taxes.
701	701	30 (8) Subject to subdivision (6), the amount that will be charged
702	702	31 periodically, if any, during the first year of the contract to pay
703	703	32 for insurance.
704	704	33 (9) A statement that any amounts listed under subdivision (7)
705	705	34 or (8) are subject to change each year.
706	706	35 (10) A listing of any unpaid amounts owed for real estate taxes
707	707	36 with respect to the property.
708	708	37 (11) The types of insurance coverage, including property
709	709	38 insurance and title insurance, for the buyer and seller that are
710	710	39 required under, or are to be provided in connection with, the
711	711	40 contract.
712	712	41 (12) A statement setting forth any repairs the buyer is
713	713	42 financially responsible for making to the residential real
714	714	2023 IN 1185—LS 6726/DI 149 17
715	715	1 estate that is subject to the contract.
716	716	2 (13) A statement setting forth any types of alterations to the
717	717	3 property that must be approved by both the buyer and the
718	718	4 seller before being made, including any requirements to
719	719	5 provide evidence of necessary permits, insurance, and lien
720	720	6 waiver agreements.
721	721	7 Sec. 3. All preexisting liens must be satisfied by the seller by the
722	722	8 end of the principal dwelling land contract term. The payment of
723	723	9 liens that arise after the execution of the principal dwelling land
724	724	10 contract shall be satisfied by the seller before the end of the
725	725	11 contract term unless otherwise set forth in the contract.
726	726	12 Sec. 4. A principal dwelling land contract must permit a buyer
727	727	13 to pay the balance owed on the contract and receive the deed at any
728	728	14 time. A principal dwelling land contract may not impose a
729	729	15 prepayment penalty or additional charge for an early payoff.
730	730	16 Sec. 5. At the time the parties execute the principal dwelling
731	731	17 land contract, the seller shall provide the buyer with one (1) copy
732	732	18 of the executed contract. The principal dwelling land contract
733	733	19 must:
734	734	20 (1) be notarized; and
735	735	21 (2) conform to the requirements set forth in IC 36-2-11 for the
736	736	22 recording of documents.
737	737	23 Sec. 6. The buyer or seller is not bound by a principal dwelling
738	738	24 land contract during the three (3) business days immediately
739	739	25 following the date of execution of the contract in the contract's full
740	740	26 and final form. At any time during the three (3) day period
741	741	27 described in this section, the buyer or the seller may deliver to the
742	742	28 other party a written notice of cancellation that has the legal effect
743	743	29 of canceling the transaction. If a notice of cancellation is delivered
744	744	30 by either the buyer or the seller to the other party during the three
745	745	31 (3) day period described in this section, the following apply:
746	746	32 (1) The buyer shall, not later than twenty-four (24) hours
747	747	33 after receipt or delivery of the notice of cancellation:
748	748	34 (A) surrender possession of the real estate that is the
749	749	35 subject of the transaction back to the seller; and
750	750	36 (B) return any keys or other devices that may be used to
751	751	37 access the property to the seller or the seller's agent.
752	752	38 (2) The seller shall, not later than two (2) business days after
753	753	39 being placed back into possession of the real estate, return all
754	754	40 monies paid by the buyer, including any down payments, fees,
755	755	41 or regular payments made in connection with the transaction.
756	756	42 Neither the buyer nor the seller may waive the three (3) day
757	757	2023 IN 1185—LS 6726/DI 149 18
758	758	1 cancellation period provided for by this section, by contract or
759	759	2 otherwise.
760	760	3 Sec. 7. The seller shall record the executed principal dwelling
761	761	4 land contract or memorandum of land contract not later than
762	762	5 thirty (30) days after the contract or memorandum is executed and
763	763	6 notarized. The buyer may record the executed and notarized
764	764	7 principal dwelling land contract or memorandum of land contract
765	765	8 at any time. The recording shall be done in the county where the
766	766	9 real property is located.
767	767	10 Sec. 8. After a principal dwelling land contract is recorded
768	768	11 under section 7 of this chapter, the seller may transfer the seller's
769	769	12 interest in the real estate that is the subject of the principal
770	770	13 dwelling land contract to another person through a recorded deed.
771	771	14 The interest transferred is subject to the recorded principal
772	772	15 dwelling land contract. The transferee shall provide to the buyer
773	773	16 under the principal dwelling land contract written notice of the
774	774	17 transfer. The notice required by this section shall be provided by
775	775	18 first class mail and by certified mail, return receipt requested, and
776	776	19 must include the following:
777	777	20 (1) A copy of the recorded warranty deed transferring the
778	778	21 seller's interest in the real estate to the transferee.
779	779	22 (2) The telephone number of the transferee.
780	780	23 (3) The address to which payments under the principal
781	781	24 dwelling land contract must be sent.
782	782	25 Sec. 9. (a) Subject to subsection (b), after a principal dwelling
783	783	26 land contract is recorded under section 7 of this chapter, the buyer
784	784	27 under the principal dwelling land contract may transfer the
785	785	28 buyer's:
786	786	29 (1) interest in the real estate that is the subject of the contract,
787	787	30 as of the date of the transfer; and
788	788	31 (2) rights and obligations under the contract, as of the date of
789	789	32 the transfer;
790	790	33 to a subsequent buyer.
791	791	34 (b) A transfer of a buyer's interest, rights, and obligations
792	792	35 described in subsection (a) is subject to the following:
793	793	36 (1) The recorded principal dwelling land contract must not
794	794	37 contain a provision specifying that the buyer's:
795	795	38 (A) interest in the real estate; and
796	796	39 (B) rights and obligations under the contract;
797	797	40 are not transferable or assignable during the term of the
798	798	41 contract.
799	799	42 (2) The buyer and seller under the recorded principal
800	800	2023 IN 1185—LS 6726/DI 149 19
801	801	1 dwelling land contract must provide the subsequent buyer
802	802	2 with the following:
803	803	3 (A) All applicable information, forms, and statements
804	804	4 required under section 1 of this chapter, current as of the
805	805	5 date of the transfer.
806	806	6 (B) All disclosures required under section 2 of this chapter,
807	807	7 current as of the date of the transfer.
808	808	8 (3) After the buyer's:
809	809	9 (A) interest in the real estate; and
810	810	10 (B) rights and obligations under the recorded principal
811	811	11 dwelling land contract;
812	812	12 are transferred to the subsequent buyer, sections 4 through 8
813	813	13 of this chapter apply with respect to the seller and the
814	814	14 subsequent buyer.
815	815	15 Chapter 4. Statement of Account
816	816	16 Sec. 1. Before January 31 of each year, the seller shall provide
817	817	17 the buyer with a written statement of account for the previous
818	818	18 calendar year. The statement must include the following:
819	819	19 (1) A record of all payments made by the buyer.
820	820	20 (2) If applicable, a record of all payments made by the seller
821	821	21 to satisfy any liens, and to whom the payments were made.
822	822	22 (3) The payoff amount as of the end of the previous calendar
823	823	23 year.
824	824	24 Chapter 5. Buyer Default
825	825	25 Sec. 1. If a buyer fails to make three (3) consecutive, timely
826	826	26 payments as required under a principal dwelling land contract, the
827	827	27 buyer is in default of the contract. If:
828	828	28 (1) the buyer has made timely payments under the contract
829	829	29 for at least one (1) year; or
830	830	30 (2) the amount of all payments made by the buyer under the
831	831	31 contract, including any down payment or prepayment, is at
832	832	32 least thirty percent (30%) of the purchase price;
833	833	33 the seller shall send the buyer, not later than ten (10) days after the
834	834	34 missed payments, a notice of default.
835	835	35 Sec. 2. A seller shall give a buyer an opportunity to cure within
836	836	36 sixty (60) days after the date of receipt of the notice provided to the
837	837	37 buyer under section 1 of this chapter. If the buyer fails to exercise
838	838	38 the right to cure, the seller may begin foreclosure proceedings
839	839	39 against the buyer.
840	840	40 Sec. 3. Forfeiture of possession of the real estate that is the
841	841	41 subject of a principal dwelling land contract is available as a
842	842	42 remedy to the seller upon any act or omission of the buyer that
843	843	2023 IN 1185—LS 6726/DI 149 20
844	844	1 constitutes a default under the terms of the contract, only if either
845	845	2 or both of the following apply:
846	846	3 (1) The real estate has been abandoned by the buyer.
847	847	4 (2) Both of the following apply:
848	848	5 (A) The amount of all payments made by the buyer under
849	849	6 the contract, including any down payment or prepayment,
850	850	7 is less than ten percent (10%) of the purchase price.
851	851	8 (B) The seller's security interest in the real estate has been
852	852	9 jeopardized by the acts or omissions of the buyer.
853	853	10 Sec. 4. At any time during the term of a principal dwelling land
854	854	11 contract, a seller shall not force a buyer's default by failing or
855	855	12 refusing to accept a payment.
856	856	13 Chapter 6. Violations
857	857	14 Sec. 1. (a) If a seller fails to provide a complete record of any
858	858	15 liens encumbering the property under IC 32-29.5-3-1, the buyer
859	859	16 has the right, not later than sixty (60) days after the parties execute
860	860	17 the principal dwelling land contract, to:
861	861	18 (1) rescind the contract, subject to subsection (b); or
862	862	19 (2) obtain liquidated damages of up to one (1) month's
863	863	20 payment under the contract.
864	864	21 (b) If, at the time a buyer seeks to rescind a principal dwelling
865	865	22 land contract under subsection (a)(1), the contract has been
866	866	23 recorded, the buyer shall:
867	867	24 (1) execute a quitclaim deed to the seller with respect to the
868	868	25 buyer's interest in the real estate as of the date of the
869	869	26 rescission; and
870	870	27 (2) record the quitclaim deed in the county in which the real
871	871	28 estate is located.
872	872	29 The quitclaim deed required under this subsection must contain a
873	873	30 cross-reference to the recorded principal dwelling land contract.
874	874	31 The seller is responsible for all expenses incurred in the drafting
875	875	32 and recording of a quitclaim deed required under this subsection.
876	876	33 However, if the buyer vacates the property and does not execute
877	877	34 and record a release of the principal dwelling land contract not
878	878	35 later than ten (10) days after vacating the property, the seller may
879	879	36 file an action for forfeiture.
880	880	37 (c) If a buyer brings an action under this section and prevails,
881	881	38 the court may award the buyer court costs and reasonable
882	882	39 attorney's fees.
883	883	40 Sec. 2. If a seller fails to send a written statement of account:
884	884	41 (1) that substantially complies with IC 32-29.5-4; and
885	885	42 (2) before March 1 of the year in which it is due;
886	886	2023 IN 1185—LS 6726/DI 149 21
887	887	1 the buyer is entitled to liquidated damages of up to one (1) month's
888	888	2 payment under the principal dwelling land contract. If a buyer
889	889	3 brings an action under this section and prevails, the court may
890	890	4 award the buyer court costs and reasonable attorney's fees.
891	891	5 Sec. 3. (a) This subsection applies to a principal dwelling land
892	892	6 contract entered into after June 30, 2023. If a seller prepares a
893	893	7 principal dwelling land contract that does not substantially comply
894	894	8 with IC 32-29.5-3, the buyer is entitled to:
895	895	9 (1) liquidated damages of up to one (1) month's payment
896	896	10 under the contract; and
897	897	11 (2) a new principal dwelling land contract containing
898	898	12 substantially identical terms to the original contract, prepared
899	899	13 at the seller's expense, that complies with IC 32-29.5-3.
900	900	14 However, if the seller fails to present the buyer with a new
901	901	15 principal dwelling land contract containing substantially identical
902	902	16 terms that complies with IC 32-29.5-3 within sixty (60) days of
903	903	17 being requested to do so in writing, the buyer is entitled to rescind
904	904	18 the contract, subject to subsection (b).
905	905	19 (b) If, at the time a buyer seeks to rescind a principal dwelling
906	906	20 land contract under subsection (a), the contract has been recorded,
907	907	21 the buyer shall:
908	908	22 (1) execute a quitclaim deed to the seller with respect to the
909	909	23 buyer's interest in the real estate as of the date of the
910	910	24 rescission; and
911	911	25 (2) record the quitclaim deed in the county in which the real
912	912	26 estate is located.
913	913	27 The quitclaim deed required under this subsection must contain a
914	914	28 cross-reference to the recorded principal dwelling land contract.
915	915	29 The seller is responsible for all expenses incurred in the drafting
916	916	30 and recording of a quitclaim deed required under this subsection.
917	917	31 However, if the buyer vacates the property and does not execute
918	918	32 and record a release of the principal dwelling land contract not
919	919	33 later than ten (10) days after vacating the property, the seller may
920	920	34 file an action for forfeiture.
921	921	35 (c) If a buyer brings an action under this section and prevails,
922	922	36 the court may award the buyer court costs and reasonable
923	923	37 attorney's fees.
924	924	38 Sec. 4. A violation of this article is an incurable deceptive act
925	925	39 that is:
926	926	40 (1) actionable by the attorney general under IC 24-5-0.5-4(c);
927	927	41 and
928	928	42 (2) subject to the penalties and remedies available to the
929	929	2023 IN 1185—LS 6726/DI 149 22
930	930	1 attorney general under IC 24-5-0.5.
931	931	2 Chapter 7. Seller Default
932	932	3 Sec. 1. (a) If:
933	933	4 (1) the buyer has fulfilled the requirements of the principal
934	934	5 dwelling land contract; and
935	935	6 (2) the seller is unable to transfer title to the buyer without
936	936	7 any assumed liens on the property;
937	937	8 the seller shall pay the buyer liquidated damages in the amount of
938	938	9 twenty-five dollars ($25) per day until each unassumed lien is
939	939	10 satisfied. If a buyer brings an action under this section and
940	940	11 prevails, the court may award the buyer court costs and reasonable
941	941	12 attorney's fees.
942	942	13 (b) This section does not affect the seller's obligation to satisfy
943	943	14 any unassumed lien.
944	944	15 (c) A buyer who has fulfilled the requirements of the principal
945	945	16 dwelling land contract is entitled to possession of the real property
946	946	17 with no further payments due to the seller.
947	947	18 Chapter 8. Rulemaking
948	948	19 Sec. 1. (a) The attorney general, in consultation with the
949	949	20 department of financial institutions, may adopt rules under
950	950	21 IC 4-22-2, including emergency rules adopted in the manner
951	951	22 provided by IC 4-22-2-37.1, to implement this article.
952	952	23 (b) Notwithstanding IC 4-22-2-37.1(g), an emergency rule
953	953	24 adopted by the attorney general under this section and in the
954	954	25 manner provided by IC 4-22-2-37.1 expires on the date on which
955	955	26 a rule that supersedes the emergency rule is adopted by the
956	956	27 attorney general under IC 4-22-2-24 through IC 4-22-2-36.
957	957	28 SECTION 4. An emergency is declared for this act.
958	958	2023 IN 1185—LS 6726/DI 149