Indiana 2024 Regular Session

Indiana House Bill HB1186 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. 1186
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 32-21-5.
7	7	Synopsis: Homeowners association covenants. Requires the owner of
8	8	a property to disclose in the disclosure form the following: (1) That the
9	9	property is in a community governed by a homeowners association. (2)
10	10	A copy of the recorded governing documents. (3) A statement
11	11	indicating whether there are assessments and the amount of any
12	12	assessments. (4) The name and business or home address of a board
13	13	member, homeowners association agent, or other person who has a
14	14	contract with the homeowners association to provide any management
15	15	services for the homeowners association. Makes conforming changes.
16	16	Effective: July 1, 2024.
17	17	Olthoff
18	18	January 9, 2024, read first time and referred to Committee on Financial Institutions.
19	19	2024 IN 1186—LS 6820/DI 154 Introduced
20	20	Second Regular Session of the 123rd General Assembly (2024)
21	21	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
22	22	Constitution) is being amended, the text of the existing provision will appear in this style type,
23	23	additions will appear in this style type, and deletions will appear in this style type.
24	24	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
25	25	provision adopted), the text of the new provision will appear in this style type. Also, the
26	26	word NEW will appear in that style type in the introductory clause of each SECTION that adds
27	27	a new provision to the Indiana Code or the Indiana Constitution.
28	28	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
29	29	between statutes enacted by the 2023 Regular Session of the General Assembly.
30	30	HOUSE BILL No. 1186
31	31	A BILL FOR AN ACT to amend the Indiana Code concerning
32	32	property.
33	33	Be it enacted by the General Assembly of the State of Indiana:
34	34	1 SECTION 1. IC 32-21-5-7, AS AMENDED BY P.L.175-2023,
35	35	2 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36	36	3 JULY 1, 2024]: Sec. 7. (a) The Indiana real estate commission
37	37	4 established by IC 25-34.1-2-1 shall adopt a specific disclosure form
38	38	5 that contains the following:
39	39	6 (1) Disclosure by the owner of the known condition of the
40	40	7 following:
41	41	8 (A) The foundation.
42	42	9 (B) The mechanical systems.
43	43	10 (C) The roof.
44	44	11 (D) The structure.
45	45	12 (E) The water and sewer systems.
46	46	13 (F) Additions that may require improvements to the sewage
47	47	14 disposal system.
48	48	15 (G) Other areas that the Indiana real estate commission
49	49	16 determines are appropriate.
50	50	17 (2) Disclosure by the owner of known:
51	51	2024 IN 1186—LS 6820/DI 154 2
52	52	1 (A) contamination caused by the manufacture of a controlled
53	53	2 substance (as defined by IC 35-48-1-9) on the property that
54	54	3 has not been certified as decontaminated by a qualified
55	55	4 inspector who is certified under IC 16-19-3.1; or
56	56	5 (B) manufacture of methamphetamine or dumping of waste
57	57	6 from the manufacture of methamphetamine in a residential
58	58	7 structure on the property.
59	59	8 (3) A notice to the prospective buyer that contains substantially
60	60	9 the following language:
61	61	10 "The prospective buyer and the owner may wish to obtain
62	62	11 professional advice or inspections of the property and provide for
63	63	12 appropriate provisions in a contract between them concerning any
64	64	13 advice, inspections, defects, or warranties obtained on the
65	65	14 property.".
66	66	15 (4) A notice to the prospective buyer that contains substantially
67	67	16 the following language:
68	68	17 "The representations in this form are the representations of the
69	69	18 owner and are not the representations of the agent, if any. This
70	70	19 information is for disclosure only and is not intended to be a part
71	71	20 of any contract between the buyer and owner.".
72	72	21 (5) A disclosure by the owner that an airport is located within a
73	73	22 geographical distance from the property as determined by the
74	74	23 Indiana real estate commission. The commission may consider the
75	75	24 differences between an airport serving commercial airlines and an
76	76	25 airport that does not serve commercial airlines in determining the
77	77	26 distance to be disclosed.
78	78	27 (6) A disclosure by the owner that:
79	79	28 (A) the property is located near a military installation, within
80	80	29 a state area of interest (as defined in IC 36-7-30.2-6), and may
81	81	30 be impacted to some degree by the effects of the installation's
82	82	31 military operations; and
83	83	32 (B) local laws may restrict use and development of the
84	84	33 property to promote compatibility with military installation
85	85	34 operations.
86	86	35 (7) If the owner has personal knowledge of the fact that all or a
87	87	36 portion of the real estate is located within a community's
88	88	37 floodplain boundaries, as indicated in a Federal Emergency
89	89	38 Management Agency Flood Insurance Rate Map, a disclosure by
90	90	39 the owner of that fact.
91	91	40 (8) Disclosure by the owner of the following:
92	92	41 (A) That the property is in a community governed by a
93	93	42 homeowners association.
94	94	2024 IN 1186—LS 6820/DI 154 3
95	95	1 (B) A copy of the recorded governing documents.
96	96	2 (C) A statement indicating whether there are assessments
97	97	3 and the amount of any assessments.
98	98	4 (D) The following information about a board member,
99	99	5 homeowners association agent, or other person who has a
100	100	6 contract with the homeowners association to provide any
101	101	7 management services for the homeowners association:
102	102	8 (i) The name.
103	103	9 (ii) The business or home address.
104	104	10 (b) Responsibility for the disclosure required under subsection
105	105	11 (a)(6) rests solely with the owner of the property and no liability for the
106	106	12 owner's failure to make the required disclosure shall accrue to any third
107	107	13 party. Failure of the owner to make the required disclosure under
108	108	14 subsection (a)(6) shall not:
109	109	15 (1) invalidate the transfer of the property; or
110	110	16 (2) create any encumbrance or lien upon any legal or equitable
111	111	17 title to the property.
112	112	18 (c) A homeowners association or agent of a homeowners
113	113	19 association providing a statement of unpaid assessments or other
114	114	20 charges of the homeowners association relating to the property as
115	115	21 described in subsection (a)(8)(C) may charge not more than two
116	116	22 hundred fifty dollars ($250) for the statement.
117	117	23 (d) The failure to provide any of the documents listed in
118	118	24 subsection (a)(8) does not limit or prevent enforcement of the
119	119	25 governing documents by the homeowners association.
120	120	26 SECTION 2. IC 32-21-5-8.5 IS REPEALED [EFFECTIVE JULY
121	121	27 1, 2024]. Sec. 8.5. (a) This section applies to all transfers of title to
122	122	28 property after June 30, 2015.
123	123	29 (b) The definitions in IC 32-25.5-2 apply in this section.
124	124	30 (c) As used in this section, "property" refers to real property covered
125	125	31 by the governing documents of a homeowners association.
126	126	32 (d) As used in this section, "purchaser" refers to a person who
127	127	33 purchases property.
128	128	34 (e) The following must be provided by the seller to a purchaser not
129	129	35 later than ten (10) days before the sale of the property closes:
130	130	36 (1) A disclosure that the property is in a community governed by
131	131	37 a homeowners association.
132	132	38 (2) A copy of the recorded governing documents.
133	133	39 (3) A statement indicating whether there are assessments and the
134	134	40 amount of any assessments.
135	135	41 (4) The following information about a board member,
136	136	42 homeowners association agent, or other person who has a contract
137	137	2024 IN 1186—LS 6820/DI 154 4
138	138	1 with the homeowners association to provide any management
139	139	2 services for the homeowners association:
140	140	3 (A) The name.
141	141	4 (B) The business or home address.
142	142	5 (f) A homeowners association or agent of a homeowners association
143	143	6 providing a statement of unpaid assessments or other charges of the
144	144	7 homeowners association relating to the property may charge not more
145	145	8 than two hundred fifty dollars ($250) for the statement.
146	146	9 (g) The failure to provide any of the documents listed in subsection
147	147	10 (e) does not limit or prevent enforcement of the governing documents
148	148	11 by the homeowners association.
149	149	2024 IN 1186—LS 6820/DI 154