Introduced Version
HOUSE BILL No. 1186
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 32-21-5.
Synopsis: Homeowners association covenants. Requires the owner of
a property to disclose in the disclosure form the following: (1) That the
property is in a community governed by a homeowners association. (2)
A copy of the recorded governing documents. (3) A statement
indicating whether there are assessments and the amount of any
assessments. (4) The name and business or home address of a board
member, homeowners association agent, or other person who has a
contract with the homeowners association to provide any management
services for the homeowners association. Makes conforming changes.
Effective: July 1, 2024.
Olthoff
January 9, 2024, read first time and referred to Committee on Financial Institutions.
2024 IN 1186—LS 6820/DI 154 Introduced
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
HOUSE BILL No. 1186
A BILL FOR AN ACT to amend the Indiana Code concerning
property.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 32-21-5-7, AS AMENDED BY P.L.175-2023,
2 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 7. (a) The Indiana real estate commission
4 established by IC 25-34.1-2-1 shall adopt a specific disclosure form
5 that contains the following:
6 (1) Disclosure by the owner of the known condition of the
7 following:
8 (A) The foundation.
9 (B) The mechanical systems.
10 (C) The roof.
11 (D) The structure.
12 (E) The water and sewer systems.
13 (F) Additions that may require improvements to the sewage
14 disposal system.
15 (G) Other areas that the Indiana real estate commission
16 determines are appropriate.
17 (2) Disclosure by the owner of known:
2024 IN 1186—LS 6820/DI 154 2
1 (A) contamination caused by the manufacture of a controlled
2 substance (as defined by IC 35-48-1-9) on the property that
3 has not been certified as decontaminated by a qualified
4 inspector who is certified under IC 16-19-3.1; or
5 (B) manufacture of methamphetamine or dumping of waste
6 from the manufacture of methamphetamine in a residential
7 structure on the property.
8 (3) A notice to the prospective buyer that contains substantially
9 the following language:
10 "The prospective buyer and the owner may wish to obtain
11 professional advice or inspections of the property and provide for
12 appropriate provisions in a contract between them concerning any
13 advice, inspections, defects, or warranties obtained on the
14 property.".
15 (4) A notice to the prospective buyer that contains substantially
16 the following language:
17 "The representations in this form are the representations of the
18 owner and are not the representations of the agent, if any. This
19 information is for disclosure only and is not intended to be a part
20 of any contract between the buyer and owner.".
21 (5) A disclosure by the owner that an airport is located within a
22 geographical distance from the property as determined by the
23 Indiana real estate commission. The commission may consider the
24 differences between an airport serving commercial airlines and an
25 airport that does not serve commercial airlines in determining the
26 distance to be disclosed.
27 (6) A disclosure by the owner that:
28 (A) the property is located near a military installation, within
29 a state area of interest (as defined in IC 36-7-30.2-6), and may
30 be impacted to some degree by the effects of the installation's
31 military operations; and
32 (B) local laws may restrict use and development of the
33 property to promote compatibility with military installation
34 operations.
35 (7) If the owner has personal knowledge of the fact that all or a
36 portion of the real estate is located within a community's
37 floodplain boundaries, as indicated in a Federal Emergency
38 Management Agency Flood Insurance Rate Map, a disclosure by
39 the owner of that fact.
40 (8) Disclosure by the owner of the following:
41 (A) That the property is in a community governed by a
42 homeowners association.
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1 (B) A copy of the recorded governing documents.
2 (C) A statement indicating whether there are assessments
3 and the amount of any assessments.
4 (D) The following information about a board member,
5 homeowners association agent, or other person who has a
6 contract with the homeowners association to provide any
7 management services for the homeowners association:
8 (i) The name.
9 (ii) The business or home address.
10 (b) Responsibility for the disclosure required under subsection
11 (a)(6) rests solely with the owner of the property and no liability for the
12 owner's failure to make the required disclosure shall accrue to any third
13 party. Failure of the owner to make the required disclosure under
14 subsection (a)(6) shall not:
15 (1) invalidate the transfer of the property; or
16 (2) create any encumbrance or lien upon any legal or equitable
17 title to the property.
18 (c) A homeowners association or agent of a homeowners
19 association providing a statement of unpaid assessments or other
20 charges of the homeowners association relating to the property as
21 described in subsection (a)(8)(C) may charge not more than two
22 hundred fifty dollars ($250) for the statement.
23 (d) The failure to provide any of the documents listed in
24 subsection (a)(8) does not limit or prevent enforcement of the
25 governing documents by the homeowners association.
26 SECTION 2. IC 32-21-5-8.5 IS REPEALED [EFFECTIVE JULY
27 1, 2024]. Sec. 8.5. (a) This section applies to all transfers of title to
28 property after June 30, 2015.
29 (b) The definitions in IC 32-25.5-2 apply in this section.
30 (c) As used in this section, "property" refers to real property covered
31 by the governing documents of a homeowners association.
32 (d) As used in this section, "purchaser" refers to a person who
33 purchases property.
34 (e) The following must be provided by the seller to a purchaser not
35 later than ten (10) days before the sale of the property closes:
36 (1) A disclosure that the property is in a community governed by
37 a homeowners association.
38 (2) A copy of the recorded governing documents.
39 (3) A statement indicating whether there are assessments and the
40 amount of any assessments.
41 (4) The following information about a board member,
42 homeowners association agent, or other person who has a contract
2024 IN 1186—LS 6820/DI 154 4
1 with the homeowners association to provide any management
2 services for the homeowners association:
3 (A) The name.
4 (B) The business or home address.
5 (f) A homeowners association or agent of a homeowners association
6 providing a statement of unpaid assessments or other charges of the
7 homeowners association relating to the property may charge not more
8 than two hundred fifty dollars ($250) for the statement.
9 (g) The failure to provide any of the documents listed in subsection
10 (e) does not limit or prevent enforcement of the governing documents
11 by the homeowners association.
2024 IN 1186—LS 6820/DI 154