Introduced Version
HOUSE BILL No. 1222
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 32-28-15; IC 34-30-2.1-527.5;
IC 35-52-32-1.2.
Synopsis: Residential real estate service agreements. Defines a
"residential real estate service agreement" as an agreement: (1) under
which a service provider agrees to provide one or more services: (A)
in connection with the maintenance, purchase, or sale of residential real
estate; and (B) that are not to be performed in their entirety within one
year after the agreement is entered into; and (2) that: (A) purports to
run with the land or to be binding on future owners; (B) allows for the
assignment of the right to provide one or more of the services under the
agreement without the consent of the owner of the residential real
estate; or (C) purports to create a lien or an encumbrance on, or a
security interest in, the residential real estate. Provides that a residential
real estate service agreement that is entered into after March 14, 2024,
is void and unenforceable. Prohibits a person from recording after
March 14, 2024, a residential real estate service agreement in Indiana,
regardless of when the residential real estate service agreement is
entered into. Provides that a person who knowingly and willfully
records or causes to be recorded a residential real estate service
agreement in violation of this prohibition commits a Class A
misdemeanor. Provides that a county recorder, or an employee of a
county recorder, who records a residential real estate service agreement
that is presented to the county recorder's office for recording is not
civilly or criminally liable under the bill's provisions, regardless of
when the recording occurs. Provides that if a residential real estate
service agreement (agreement) is recorded in Indiana after March 14,
2024, any person with an interest in the residential real estate that is the
subject of the agreement may: (1) apply to a court in the county in
(Continued next page)
Effective: Upon passage.
Haggard, Torr, Miller D
January 9, 2024, read first time and referred to Committee on Judiciary.
2024 IN 1222—LS 6891/DI 101 Digest Continued
which the agreement is recorded for a declaratory judgment declaring
the agreement unenforceable; and (2) recover the person's actual
damages against any service provider that: (A) is a party to the
agreement; and (B) recorded, or caused to be recorded, the agreement.
Provides that a service provider that: (1) enters into a residential real
estate service agreement with any person; or (2) records, or causes to
be recorded, a residential real estate service agreement in Indiana; after
March 14, 2024, commits a deceptive act that is subject to the remedies
and penalties under the deceptive consumer sales act (act), including
an action by the attorney general under the act. Provides that the bill's
provisions do not apply to: (1) a residential real estate service
agreement entered into before March 15, 2024 (except as otherwise
provided in the bill); or (2) certain specified products, contracts, rights,
agreements, services, or liens.
2024 IN 1222—LS 6891/DI 1012024 IN 1222—LS 6891/DI 101 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. 1222
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 32-28-15 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 UPON PASSAGE]:
4 Chapter 15. Prohibition Against Residential Real Estate Service
5 Agreements
6 Sec. 1. (a) Except as otherwise provided in this chapter, this
7 chapter does not apply to a residential real estate service
8 agreement entered into before March 15, 2024.
9 (b) This chapter does not apply to any of the following:
10 (1) A home warranty or similar product that covers the cost
11 of maintenance of a major home system, such as:
12 (A) a plumbing system;
13 (B) a heating, cooling, and ventilation system; or
14 (C) electrical wiring;
15 for a fixed period.
2024 IN 1222—LS 6891/DI 101 2
1 (2) An insurance contract.
2 (3) An option to purchase residential real estate or a right of
3 refusal to purchase residential real estate.
4 (4) A declaration that is created in the formation of:
5 (A) an association of co-owners (as defined in IC 32-25-2-2)
6 for a condominium (as defined in IC 32-25-2-7); or
7 (B) a homeowners association (as defined in
8 IC 32-25.5-2-4);
9 including any amendment to the declaration.
10 (5) A maintenance or repair agreement entered into by:
11 (A) an association of co-owners (as defined in IC 32-25-2-2)
12 for a condominium (as defined in IC 32-25-2-7); or
13 (B) a homeowners association (as defined in
14 IC 32-25.5-2-4).
15 (6) A mortgage loan or a commitment to make or receive a
16 mortgage loan.
17 (7) A security agreement under IC 26-1 concerning the sale or
18 rental of personal property or fixtures.
19 (8) Providers of:
20 (A) utility services, including water, sewer, gas, or electric
21 service; or
22 (B) communications service (as defined in IC 8-1-32.5-3).
23 (9) A land contract (as defined in IC 24-9-2-9.5).
24 (10) An attorney's lien authorized by IC 33-43-4.
25 (11) A statutory lien authorized by this article, including:
26 (A) the lien of a broker company (as defined in
27 IC 32-28-12.5-0.5) upon commercial real estate under
28 IC 32-28-12.5-5; or
29 (B) a mechanic's or materialman's lien under IC 32-28-3.
30 Sec. 2. As used in this chapter, "person" means:
31 (1) a natural person; or
32 (2) an organization, including a corporation, a partnership, a
33 proprietorship, an association, a cooperative, an estate, a
34 trust, or another legal entity.
35 Sec. 3. As used in this chapter, "record" means to record a
36 record (as defined in IC 32-17.5-3-3(a)) with a county recorder in
37 accordance with Indiana law.
38 Sec. 4. As used in this chapter, "residential real estate" means
39 real property:
40 (1) that is located in Indiana; and
41 (2) upon which is constructed or intended to be constructed a
42 dwelling that contains one (1) to four (4) units.
2024 IN 1222—LS 6891/DI 101 3
1 Sec. 5. (a) As used in this chapter, "residential real estate service
2 agreement" means an agreement:
3 (1) under which a service provider agrees to provide one (1)
4 or more services:
5 (A) in connection with the maintenance, purchase, or sale
6 of residential real estate; and
7 (B) that are not to be performed in their entirety within
8 one (1) year after the agreement is entered into; and
9 (2) that has one (1) or more of the following characteristics:
10 (A) The agreement purports to run with the land or to be
11 binding on future owners of interests in the residential real
12 estate.
13 (B) The agreement allows for the assignment of the right
14 to provide one (1) or more of the services under the
15 agreement without the consent of the owner of the
16 residential real estate to the assignment.
17 (C) The agreement purports to create:
18 (i) a lien or an encumbrance on; or
19 (ii) a security interest in;
20 the residential real estate.
21 (b) For purposes of sections 8 and 9 of this chapter, the term
22 includes a:
23 (1) notice; or
24 (2) memorandum;
25 of an agreement described in subsection (a).
26 Sec. 6. As used in this chapter, "service provider" means a
27 person that provides services or products to a consumer.
28 Sec. 7. A residential real estate service agreement that is entered
29 into after March 14, 2024, is void and unenforceable.
30 Sec. 8. (a) After March 14, 2024, a person shall not record, or
31 cause to be recorded, a residential real estate service agreement in
32 Indiana, regardless of when the residential real estate service
33 agreement was entered into.
34 (b) Except as provided in subsection (d), a person who
35 knowingly and willfully records, or causes to be recorded, a
36 residential real estate service agreement in Indiana in violation of
37 subsection (a) commits a Class A misdemeanor.
38 (c) A county recorder, or an employee of a county recorder, who
39 records a residential real estate service agreement that is presented
40 to the county recorder's office for recording is not liable to:
41 (1) any party to the residential real estate service agreement;
42 or
2024 IN 1222—LS 6891/DI 101 4
1 (2) any other person;
2 regardless of when the recording occurs.
3 (d) A county recorder, or an employee of a county recorder,
4 who records a residential real estate service agreement that is
5 presented to the county recorder's office for recording is not
6 criminally liable under subsection (b) regardless of when the
7 recording occurs.
8 (e) If a residential real estate service agreement is recorded in
9 Indiana after March 14, 2024, the recording does not:
10 (1) create or serve as:
11 (A) a lien or an encumbrance on; or
12 (B) a security interest in;
13 the residential real estate that is the subject of the residential
14 real estate service agreement; or
15 (2) constitute actual or constructive notice to:
16 (A) an otherwise bona fide purchaser of the residential real
17 estate that is the subject of the residential real estate
18 service agreement; or
19 (B) any lender that makes a loan to any person in
20 connection with the residential real estate that is the
21 subject of the residential real estate service agreement;
22 of a lien or an encumbrance on, or a security interest in, the
23 residential real estate that is the subject of the residential real
24 estate service agreement.
25 Sec. 9. (a) If a residential real estate service agreement is
26 recorded in Indiana after March 14, 2024, any person with an
27 interest in the residential real estate that is the subject of the
28 residential real estate service agreement may:
29 (1) in accordance with IC 34-14-1, apply to a court of
30 competent jurisdiction in the county in which the residential
31 real estate service agreement is recorded for a judgment
32 declaring the residential real estate service agreement
33 unenforceable; and
34 (2) recover the person's actual damages, as the court
35 determines to have been proven, against any service provider
36 that:
37 (A) is a party to the residential real estate service
38 agreement; and
39 (B) recorded, or caused to be recorded, the residential real
40 estate service agreement;
41 regardless of when the residential real estate service agreement
42 was entered into.
2024 IN 1222—LS 6891/DI 101 5
1 (b) If a person with an interest in the residential real estate that
2 is the subject of a residential real estate service agreement obtains
3 under subsection (a) a court order declaring the residential real
4 estate service agreement to be unenforceable, the person shall
5 record the court's order with the county recorder, who shall
6 cross-reference the order to the residential real estate service
7 agreement originally recorded.
8 Sec. 10. A service provider that:
9 (1) enters into a residential real estate service agreement with
10 any person; or
11 (2) records, or causes to be recorded, a residential real estate
12 service agreement in Indiana;
13 after March 14, 2024, commits a deceptive act that is subject to the
14 remedies and penalties under IC 24-5-0.5, including an action by
15 the attorney general under IC 24-5-0.5-4(c).
16 SECTION 2. IC 34-30-2.1-527.5 IS ADDED TO THE INDIANA
17 CODE AS A NEW SECTION TO READ AS FOLLOWS
18 [EFFECTIVE UPON PASSAGE]: Sec. 527.5. IC 32-28-15-8(c)
19 (Concerning a county recorder, or an employee of a county
20 recorder, who records a residential real estate service agreement
21 that is presented for recording).
22 SECTION 3. IC 35-52-32-1.2 IS ADDED TO THE INDIANA
23 CODE AS A NEW SECTION TO READ AS FOLLOWS
24 [EFFECTIVE UPON PASSAGE]: Sec. 1.2. IC 32-28-15-8(b) defines
25 a crime concerning the recording of a residential real estate service
26 agreement.
27 SECTION 4. An emergency is declared for this act.
2024 IN 1222—LS 6891/DI 101