Indiana 2024 Regular Session

Indiana House Bill HB1313 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. 1313
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
36	36	January 10, 2024, read first time and referred to Committee on Judiciary.
37	37	2024 IN 1313—LS 6201/DI 149 Introduced
38	38	Second Regular Session of the 123rd General Assembly (2024)
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 2023 Regular Session of the General Assembly.
48	48	HOUSE BILL No. 1313
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.236-2023,
53	53	2 SECTION 23, 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, limited to a single house and
59	59	8 a single garage, regardless of whether the single garage is
60	60	9 attached to the single house or detached from the single house.
61	61	10 (B) A mobile home that is not assessed as real property that an
62	62	11 individual uses as the individual's residence.
63	63	12 (C) A manufactured home that is not assessed as real property
64	64	13 that an individual uses as the individual's residence.
65	65	14 (2) "Homestead" means an individual's principal place of
66	66	15 residence:
67	67	16 (A) that is located in Indiana;
68	68	17 (B) that:
69	69	2024 IN 1313—LS 6201/DI 149 2
70	70	1 (i) the individual owns;
71	71	2 (ii) the individual is buying under a contract recorded in the
72	72	3 county recorder's office, or evidenced by a memorandum of
73	73	4 contract recorded in the county recorder's office under
74	74	5 IC 36-2-11-20, that provides that the individual is to pay the
75	75	6 property taxes on the residence, and that obligates the owner
76	76	7 to convey title to the individual upon completion of all of the
77	77	8 individual's contract obligations;
78	78	9 (iii) the individual is entitled to occupy as a
79	79	10 tenant-stockholder (as defined in 26 U.S.C. 216) of a
80	80	11 cooperative housing corporation (as defined in 26 U.S.C.
81	81	12 216); or
82	82	13 (iv) is a residence described in section 17.9 of this chapter
83	83	14 that is owned by a trust if the individual is an individual
84	84	15 described in section 17.9 of this chapter; and
85	85	16 (C) that consists of a dwelling and includes up to one (1) acre
86	86	17 of land immediately surrounding that dwelling, and any of the
87	87	18 following improvements:
88	88	19 (i) Any number of decks, patios, gazebos, or pools.
89	89	20 (ii) One (1) additional building that is not part of the
90	90	21 dwelling if the building is predominantly used for a
91	91	22 residential purpose and is not used as an investment property
92	92	23 or as a rental property.
93	93	24 (iii) One (1) additional residential yard structure other than
94	94	25 a deck, patio, gazebo, or pool.
95	95	26 For purposes of clause (B)(ii), the term includes the principal
96	96	27 residence of an individual who has completed all of the
97	97	28 individual's obligations under a principal dwelling land
98	98	29 contract (as defined in IC 32-29.5-2-3), regardless of whether
99	99	30 or not the seller has conveyed the title. The term does not
100	100	31 include property owned by a corporation, partnership, limited
101	101	32 liability company, or other entity not described in this
102	102	33 subdivision.
103	103	34 (b) Each year a homestead is eligible for a standard deduction from
104	104	35 the assessed value of the homestead for an assessment date. Except as
105	105	36 provided in subsection (m), the deduction provided by this section
106	106	37 applies to property taxes first due and payable for an assessment date
107	107	38 only if an individual has an interest in the homestead described in
108	108	39 subsection (a)(2)(B) on:
109	109	40 (1) the assessment date; or
110	110	41 (2) any date in the same year after an assessment date that a
111	111	42 statement is filed under subsection (e) or section 44 of this
112	112	2024 IN 1313—LS 6201/DI 149 3
113	113	1 chapter, if the property consists of real property.
114	114	2 If more than one (1) individual or entity qualifies property as a
115	115	3 homestead under subsection (a)(2)(B) for an assessment date, only one
116	116	4 (1) standard deduction from the assessed value of the homestead may
117	117	5 be applied for the assessment date. Subject to subsection (c), the
118	118	6 auditor of the county shall record and make the deduction for the
119	119	7 individual or entity qualifying for the deduction.
120	120	8 (c) Except as provided in section 40.5 of this chapter, the total
121	121	9 amount of the deduction that a person may receive under this section
122	122	10 for a particular year is the lesser of:
123	123	11 (1) sixty percent (60%) of the assessed value of the real property,
124	124	12 mobile home not assessed as real property, or manufactured home
125	125	13 not assessed as real property; or
126	126	14 (2) for assessment dates:
127	127	15 (A) before January 1, 2023, forty-five thousand dollars
128	128	16 ($45,000); or
129	129	17 (B) after December 31, 2022, forty-eight thousand dollars
130	130	18 ($48,000).
131	131	19 (d) A person who has sold real property, a mobile home not assessed
132	132	20 as real property, or a manufactured home not assessed as real property
133	133	21 to another person under a contract that provides that the contract buyer
134	134	22 is to pay the property taxes on the real property, mobile home, or
135	135	23 manufactured home may not claim the deduction provided under this
136	136	24 section with respect to that real property, mobile home, or
137	137	25 manufactured home.
138	138	26 (e) Except as provided in sections 17.8 and 44 of this chapter and
139	139	27 subject to section 45 of this chapter, an individual who desires to claim
140	140	28 the deduction provided by this section must file a certified statement on
141	141	29 forms prescribed by the department of local government finance, with
142	142	30 the auditor of the county in which the homestead is located. The
143	143	31 statement must include:
144	144	32 (1) the parcel number or key number of the property and the name
145	145	33 of the city, town, or township in which the property is located;
146	146	34 (2) the name of any other location in which the applicant or the
147	147	35 applicant's spouse owns, is buying, or has a beneficial interest in
148	148	36 residential real property;
149	149	37 (3) the names of:
150	150	38 (A) the applicant and the applicant'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	2024 IN 1313—LS 6201/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 an individual; or
159	159	4 (B) each individual who qualifies property as a homestead
160	160	5 under subsection (a)(2)(B) and the individual's spouse (if any):
161	161	6 (i) as the names appear in the records of the United States
162	162	7 Social Security Administration for the purposes of the
163	163	8 issuance of a Social Security card and Social Security
164	164	9 number; or
165	165	10 (ii) that they use as their legal names when they sign their
166	166	11 names on legal documents;
167	167	12 if the applicant is not an individual; and
168	168	13 (4) either:
169	169	14 (A) the last five (5) digits of the applicant's Social Security
170	170	15 number and the last five (5) digits of the Social Security
171	171	16 number of the applicant's spouse (if any); or
172	172	17 (B) if the applicant or the applicant's spouse (if any) does not
173	173	18 have a Social Security number, any of the following for that
174	174	19 individual:
175	175	20 (i) The last five (5) digits of the individual's driver's license
176	176	21 number.
177	177	22 (ii) The last five (5) digits of the individual's state
178	178	23 identification card number.
179	179	24 (iii) The last five (5) digits of a preparer tax identification
180	180	25 number that is obtained by the individual through the
181	181	26 Internal Revenue Service of the United States.
182	182	27 (iv) If the individual does not have a driver's license, a state
183	183	28 identification card, or an Internal Revenue Service preparer
184	184	29 tax identification number, the last five (5) digits of a control
185	185	30 number that is on a document issued to the individual by the
186	186	31 United States government.
187	187	32 If a form or statement provided to the county auditor under this section,
188	188	33 IC 6-1.1-22-8.1, or IC 6-1.1-22.5-12 includes the telephone number or
189	189	34 part or all of the Social Security number of a party or other number
190	190	35 described in subdivision (4)(B) of a party, the telephone number and
191	191	36 the Social Security number or other number described in subdivision
192	192	37 (4)(B) included are confidential. The statement may be filed in person
193	193	38 or by mail. If the statement is mailed, the mailing must be postmarked
194	194	39 on or before the last day for filing. The statement applies for that first
195	195	40 year and any succeeding year for which the deduction is allowed. To
196	196	41 obtain the deduction for a desired calendar year in which property taxes
197	197	42 are first due and payable, the statement must be completed and dated
198	198	2024 IN 1313—LS 6201/DI 149 5
199	199	1 in the immediately preceding calendar year and filed with the county
200	200	2 auditor on or before January 5 of the calendar year in which the
201	201	3 property taxes are first due and payable.
202	202	4 (f) Except as provided in subsection (k), if a person who is
203	203	5 receiving, or seeks to receive, the deduction provided by this section in
204	204	6 the person's name:
205	205	7 (1) changes the use of the individual's property so that part or all
206	206	8 of the property no longer qualifies for the deduction under this
207	207	9 section; or
208	208	10 (2) is not eligible for a deduction under this section because the
209	209	11 person is already receiving:
210	210	12 (A) a deduction under this section in the person's name as an
211	211	13 individual or a spouse; or
212	212	14 (B) a deduction under the law of another state that is
213	213	15 equivalent to the deduction provided by this section;
214	214	16 the person must file a certified statement with the auditor of the county,
215	215	17 notifying the auditor of the person's ineligibility, not more than sixty
216	216	18 (60) days after the date of the change in eligibility. A person who fails
217	217	19 to file the statement required by this subsection may, under
218	218	20 IC 6-1.1-36-17, be liable for any additional taxes that would have been
219	219	21 due on the property if the person had filed the statement as required by
220	220	22 this subsection plus a civil penalty equal to ten percent (10%) of the
221	221	23 additional taxes due. The civil penalty imposed under this subsection
222	222	24 is in addition to any interest and penalties for a delinquent payment that
223	223	25 might otherwise be due. One percent (1%) of the total civil penalty
224	224	26 collected under this subsection shall be transferred by the county to the
225	225	27 department of local government finance for use by the department in
226	226	28 establishing and maintaining the homestead property data base under
227	227	29 subsection (i) and, to the extent there is money remaining, for any other
228	228	30 purposes of the department. This amount becomes part of the property
229	229	31 tax liability for purposes of this article.
230	230	32 (g) The department of local government finance may adopt rules or
231	231	33 guidelines concerning the application for a deduction under this
232	232	34 section.
233	233	35 (h) This subsection does not apply to property in the first year for
234	234	36 which a deduction is claimed under this section if the sole reason that
235	235	37 a deduction is claimed on other property is that the individual or
236	236	38 married couple maintained a principal residence at the other property
237	237	39 on the assessment date in the same year in which an application for a
238	238	40 deduction is filed under this section or, if the application is for a
239	239	41 homestead that is assessed as personal property, on the assessment date
240	240	42 in the immediately preceding year and the individual or married couple
241	241	2024 IN 1313—LS 6201/DI 149 6
242	242	1 is moving the individual's or married couple's principal residence to the
243	243	2 property that is the subject of the application. Except as provided in
244	244	3 subsection (k), the county auditor may not grant an individual or a
245	245	4 married couple a deduction under this section if:
246	246	5 (1) the individual or married couple, for the same year, claims the
247	247	6 deduction on two (2) or more different applications for the
248	248	7 deduction; and
249	249	8 (2) the applications claim the deduction for different property.
250	250	9 (i) The department of local government finance shall provide secure
251	251	10 access to county auditors to a homestead property data base that
252	252	11 includes access to the homestead owner's name and the numbers
253	253	12 required from the homestead owner under subsection (e)(4) for the sole
254	254	13 purpose of verifying whether an owner is wrongly claiming a deduction
255	255	14 under this chapter or a credit under IC 6-1.1-20.4, IC 6-1.1-20.6, or
256	256	15 IC 6-3.6-5 (after December 31, 2016). Each county auditor shall submit
257	257	16 data on deductions applicable to the current tax year on or before
258	258	17 March 15 of each year in a manner prescribed by the department of
259	259	18 local government finance.
260	260	19 (j) A county auditor may require an individual to provide evidence
261	261	20 proving that the individual's residence is the individual's principal place
262	262	21 of residence as claimed in the certified statement filed under subsection
263	263	22 (e). The county auditor may limit the evidence that an individual is
264	264	23 required to submit to a state income tax return, a valid driver's license,
265	265	24 or a valid voter registration card showing that the residence for which
266	266	25 the deduction is claimed is the individual's principal place of residence.
267	267	26 The county auditor may not deny an application filed under section 44
268	268	27 of this chapter because the applicant does not have a valid driver's
269	269	28 license or state identification card with the address of the homestead
270	270	29 property. The department of local government finance shall work with
271	271	30 county auditors to develop procedures to determine whether a property
272	272	31 owner that is claiming a standard deduction or homestead credit is not
273	273	32 eligible for the standard deduction or homestead credit because the
274	274	33 property owner's principal place of residence is outside Indiana.
275	275	34 (k) A county auditor shall grant an individual a deduction under this
276	276	35 section regardless of whether the individual and the individual's spouse
277	277	36 claim a deduction on two (2) different applications and each
278	278	37 application claims a deduction for different property if the property
279	279	38 owned by the individual's spouse is located outside Indiana and the
280	280	39 individual files an affidavit with the county auditor containing the
281	281	40 following information:
282	282	41 (1) The names of the county and state in which the individual's
283	283	42 spouse claims a deduction substantially similar to the deduction
284	284	2024 IN 1313—LS 6201/DI 149 7
285	285	1 allowed by this section.
286	286	2 (2) A statement made under penalty of perjury that the following
287	287	3 are true:
288	288	4 (A) That the individual and the individual's spouse maintain
289	289	5 separate principal places of residence.
290	290	6 (B) That neither the individual nor the individual's spouse has
291	291	7 an ownership interest in the other's principal place of
292	292	8 residence.
293	293	9 (C) That neither the individual nor the individual's spouse has,
294	294	10 for that same year, claimed a standard or substantially similar
295	295	11 deduction for any property other than the property maintained
296	296	12 as a principal place of residence by the respective individuals.
297	297	13 A county auditor may require an individual or an individual's spouse to
298	298	14 provide evidence of the accuracy of the information contained in an
299	299	15 affidavit submitted under this subsection. The evidence required of the
300	300	16 individual or the individual's spouse may include state income tax
301	301	17 returns, excise tax payment information, property tax payment
302	302	18 information, driver license information, and voter registration
303	303	19 information.
304	304	20 (l) If:
305	305	21 (1) a property owner files a statement under subsection (e) to
306	306	22 claim the deduction provided by this section for a particular
307	307	23 property; and
308	308	24 (2) the county auditor receiving the filed statement determines
309	309	25 that the property owner's property is not eligible for the deduction;
310	310	26 the county auditor shall inform the property owner of the county
311	311	27 auditor's determination in writing. If a property owner's property is not
312	312	28 eligible for the deduction because the county auditor has determined
313	313	29 that the property is not the property owner's principal place of
314	314	30 residence, the property owner may appeal the county auditor's
315	315	31 determination as provided in IC 6-1.1-15. The county auditor shall
316	316	32 inform the property owner of the owner's right to appeal when the
317	317	33 county auditor informs the property owner of the county auditor's
318	318	34 determination under this subsection.
319	319	35 (m) An individual is entitled to the deduction under this section for
320	320	36 a homestead for a particular assessment date if:
321	321	37 (1) either:
322	322	38 (A) the individual's interest in the homestead as described in
323	323	39 subsection (a)(2)(B) is conveyed to the individual after the
324	324	40 assessment date, but within the calendar year in which the
325	325	41 assessment date occurs; or
326	326	42 (B) the individual contracts to purchase the homestead after
327	327	2024 IN 1313—LS 6201/DI 149 8
328	328	1 the assessment date, but within the calendar year in which the
329	329	2 assessment date occurs;
330	330	3 (2) on the assessment date:
331	331	4 (A) the property on which the homestead is currently located
332	332	5 was vacant land; or
333	333	6 (B) the construction of the dwelling that constitutes the
334	334	7 homestead was not completed; and
335	335	8 (3) either:
336	336	9 (A) the individual files the certified statement required by
337	337	10 subsection (e); or
338	338	11 (B) a sales disclosure form that meets the requirements of
339	339	12 section 44 of this chapter is submitted to the county assessor
340	340	13 on or before December 31 of the calendar year for the
341	341	14 individual's purchase of the homestead.
342	342	15 An individual who satisfies the requirements of subdivisions (1)
343	343	16 through (3) is entitled to the deduction under this section for the
344	344	17 homestead for the assessment date, even if on the assessment date the
345	345	18 property on which the homestead is currently located was vacant land
346	346	19 or the construction of the dwelling that constitutes the homestead was
347	347	20 not completed. The county auditor shall apply the deduction for the
348	348	21 assessment date and for the assessment date in any later year in which
349	349	22 the homestead remains eligible for the deduction. A homestead that
350	350	23 qualifies for the deduction under this section as provided in this
351	351	24 subsection is considered a homestead for purposes of section 37.5 of
352	352	25 this chapter and IC 6-1.1-20.6.
353	353	26 (n) This subsection applies to an application for the deduction
354	354	27 provided by this section that is filed for an assessment date occurring
355	355	28 after December 31, 2013. Notwithstanding any other provision of this
356	356	29 section, an individual buying a mobile home that is not assessed as real
357	357	30 property or a manufactured home that is not assessed as real property
358	358	31 under a contract providing that the individual is to pay the property
359	359	32 taxes on the mobile home or manufactured home is not entitled to the
360	360	33 deduction provided by this section unless the parties to the contract
361	361	34 comply with IC 9-17-6-17.
362	362	35 (o) This subsection:
363	363	36 (1) applies to an application for the deduction provided by this
364	364	37 section that is filed for an assessment date occurring after
365	365	38 December 31, 2013; and
366	366	39 (2) does not apply to an individual described in subsection (n).
367	367	40 The owner of a mobile home that is not assessed as real property or a
368	368	41 manufactured home that is not assessed as real property must attach a
369	369	42 copy of the owner's title to the mobile home or manufactured home to
370	370	2024 IN 1313—LS 6201/DI 149 9
371	371	1 the application for the deduction provided by this section.
372	372	2 (p) For assessment dates after 2013, the term "homestead" includes
373	373	3 property that is owned by an individual who:
374	374	4 (1) is serving on active duty in any branch of the armed forces of
375	375	5 the United States;
376	376	6 (2) was ordered to transfer to a location outside Indiana; and
377	377	7 (3) was otherwise eligible, without regard to this subsection, for
378	378	8 the deduction under this section for the property for the
379	379	9 assessment date immediately preceding the transfer date specified
380	380	10 in the order described in subdivision (2).
381	381	11 For property to qualify under this subsection for the deduction provided
382	382	12 by this section, the individual described in subdivisions (1) through (3)
383	383	13 must submit to the county auditor a copy of the individual's transfer
384	384	14 orders or other information sufficient to show that the individual was
385	385	15 ordered to transfer to a location outside Indiana. The property continues
386	386	16 to qualify for the deduction provided by this section until the individual
387	387	17 ceases to be on active duty, the property is sold, or the individual's
388	388	18 ownership interest is otherwise terminated, whichever occurs first.
389	389	19 Notwithstanding subsection (a)(2), the property remains a homestead
390	390	20 regardless of whether the property continues to be the individual's
391	391	21 principal place of residence after the individual transfers to a location
392	392	22 outside Indiana. The property continues to qualify as a homestead
393	393	23 under this subsection if the property is leased while the individual is
394	394	24 away from Indiana and is serving on active duty, if the individual has
395	395	25 lived at the property at any time during the past ten (10) years.
396	396	26 Otherwise, the property ceases to qualify as a homestead under this
397	397	27 subsection if the property is leased while the individual is away from
398	398	28 Indiana. Property that qualifies as a homestead under this subsection
399	399	29 shall also be construed as a homestead for purposes of section 37.5 of
400	400	30 this chapter.
401	401	31 SECTION 2. IC 24-5-0.5-3, AS AMENDED BY P.L.34-2022,
402	402	32 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
403	403	33 UPON PASSAGE]: Sec. 3. (a) A supplier may not commit an unfair,
404	404	34 abusive, or deceptive act, omission, or practice in connection with a
405	405	35 consumer transaction. Such an act, omission, or practice by a supplier
406	406	36 is a violation of this chapter whether it occurs before, during, or after
407	407	37 the transaction. An act, omission, or practice prohibited by this section
408	408	38 includes both implicit and explicit misrepresentations.
409	409	39 (b) Without limiting the scope of subsection (a), the following acts,
410	410	40 and the following representations as to the subject matter of a
411	411	41 consumer transaction, made orally, in writing, or by electronic
412	412	42 communication, by a supplier, are deceptive acts:
413	413	2024 IN 1313—LS 6201/DI 149 10
414	414	1 (1) That such subject of a consumer transaction has sponsorship,
415	415	2 approval, performance, characteristics, accessories, uses, or
416	416	3 benefits it does not have which the supplier knows or should
417	417	4 reasonably know it does not have.
418	418	5 (2) That such subject of a consumer transaction is of a particular
419	419	6 standard, quality, grade, style, or model, if it is not and if the
420	420	7 supplier knows or should reasonably know that it is not.
421	421	8 (3) That such subject of a consumer transaction is new or unused,
422	422	9 if it is not and if the supplier knows or should reasonably know
423	423	10 that it is not.
424	424	11 (4) That such subject of a consumer transaction will be supplied
425	425	12 to the public in greater quantity than the supplier intends or
426	426	13 reasonably expects.
427	427	14 (5) That replacement or repair constituting the subject of a
428	428	15 consumer transaction is needed, if it is not and if the supplier
429	429	16 knows or should reasonably know that it is not.
430	430	17 (6) That a specific price advantage exists as to such subject of a
431	431	18 consumer transaction, if it does not and if the supplier knows or
432	432	19 should reasonably know that it does not.
433	433	20 (7) That the supplier has a sponsorship, approval, or affiliation in
434	434	21 such consumer transaction the supplier does not have, and which
435	435	22 the supplier knows or should reasonably know that the supplier
436	436	23 does not have.
437	437	24 (8) That such consumer transaction involves or does not involve
438	438	25 a warranty, a disclaimer of warranties, or other rights, remedies,
439	439	26 or obligations, if the representation is false and if the supplier
440	440	27 knows or should reasonably know that the representation is false.
441	441	28 (9) That the consumer will receive a rebate, discount, or other
442	442	29 benefit as an inducement for entering into a sale or lease in return
443	443	30 for giving the supplier the names of prospective consumers or
444	444	31 otherwise helping the supplier to enter into other consumer
445	445	32 transactions, if earning the benefit, rebate, or discount is
446	446	33 contingent upon the occurrence of an event subsequent to the time
447	447	34 the consumer agrees to the purchase or lease.
448	448	35 (10) That the supplier is able to deliver or complete the subject of
449	449	36 the consumer transaction within a stated period of time, when the
450	450	37 supplier knows or should reasonably know the supplier could not.
451	451	38 If no time period has been stated by the supplier, there is a
452	452	39 presumption that the supplier has represented that the supplier
453	453	40 will deliver or complete the subject of the consumer transaction
454	454	41 within a reasonable time, according to the course of dealing or the
455	455	42 usage of the trade.
456	456	2024 IN 1313—LS 6201/DI 149 11
457	457	1 (11) That the consumer will be able to purchase the subject of the
458	458	2 consumer transaction as advertised by the supplier, if the supplier
459	459	3 does not intend to sell it.
460	460	4 (12) That the replacement or repair constituting the subject of a
461	461	5 consumer transaction can be made by the supplier for the estimate
462	462	6 the supplier gives a customer for the replacement or repair, if the
463	463	7 specified work is completed and:
464	464	8 (A) the cost exceeds the estimate by an amount equal to or
465	465	9 greater than ten percent (10%) of the estimate;
466	466	10 (B) the supplier did not obtain written permission from the
467	467	11 customer to authorize the supplier to complete the work even
468	468	12 if the cost would exceed the amounts specified in clause (A);
469	469	13 (C) the total cost for services and parts for a single transaction
470	470	14 is more than seven hundred fifty dollars ($750); and
471	471	15 (D) the supplier knew or reasonably should have known that
472	472	16 the cost would exceed the estimate in the amounts specified in
473	473	17 clause (A).
474	474	18 (13) That the replacement or repair constituting the subject of a
475	475	19 consumer transaction is needed, and that the supplier disposes of
476	476	20 the part repaired or replaced earlier than seventy-two (72) hours
477	477	21 after both:
478	478	22 (A) the customer has been notified that the work has been
479	479	23 completed; and
480	480	24 (B) the part repaired or replaced has been made available for
481	481	25 examination upon the request of the customer.
482	482	26 (14) Engaging in the replacement or repair of the subject of a
483	483	27 consumer transaction if the consumer has not authorized the
484	484	28 replacement or repair, and if the supplier knows or should
485	485	29 reasonably know that it is not authorized.
486	486	30 (15) The act of misrepresenting the geographic location of the
487	487	31 supplier by listing an alternate business name or an assumed
488	488	32 business name (as described in IC 23-0.5-3-4) in a local telephone
489	489	33 directory if:
490	490	34 (A) the name misrepresents the supplier's geographic location;
491	491	35 (B) the listing fails to identify the locality and state of the
492	492	36 supplier's business;
493	493	37 (C) calls to the local telephone number are routinely forwarded
494	494	38 or otherwise transferred to a supplier's business location that
495	495	39 is outside the calling area covered by the local telephone
496	496	40 directory; and
497	497	41 (D) the supplier's business location is located in a county that
498	498	42 is not contiguous to a county in the calling area covered by the
499	499	2024 IN 1313—LS 6201/DI 149 12
500	500	1 local telephone directory.
501	501	2 (16) The act of listing an alternate business name or assumed
502	502	3 business name (as described in IC 23-0.5-3-4) in a directory
503	503	4 assistance data base if:
504	504	5 (A) the name misrepresents the supplier's geographic location;
505	505	6 (B) calls to the local telephone number are routinely forwarded
506	506	7 or otherwise transferred to a supplier's business location that
507	507	8 is outside the local calling area; and
508	508	9 (C) the supplier's business location is located in a county that
509	509	10 is not contiguous to a county in the local calling area.
510	510	11 (17) The violation by a supplier of IC 24-3-4 concerning
511	511	12 cigarettes for import or export.
512	512	13 (18) The act of a supplier in knowingly selling or reselling a
513	513	14 product to a consumer if the product has been recalled, whether
514	514	15 by the order of a court or a regulatory body, or voluntarily by the
515	515	16 manufacturer, distributor, or retailer, unless the product has been
516	516	17 repaired or modified to correct the defect that was the subject of
517	517	18 the recall.
518	518	19 (19) The violation by a supplier of 47 U.S.C. 227, including any
519	519	20 rules or regulations issued under 47 U.S.C. 227.
520	520	21 (20) The violation by a supplier of the federal Fair Debt
521	521	22 Collection Practices Act (15 U.S.C. 1692 et seq.), including any
522	522	23 rules or regulations issued under the federal Fair Debt Collection
523	523	24 Practices Act (15 U.S.C. 1692 et seq.).
524	524	25 (21) A violation of IC 24-5-7 (concerning health spa services), as
525	525	26 set forth in IC 24-5-7-17.
526	526	27 (22) A violation of IC 24-5-8 (concerning business opportunity
527	527	28 transactions), as set forth in IC 24-5-8-20.
528	528	29 (23) A violation of IC 24-5-10 (concerning home consumer
529	529	30 transactions), as set forth in IC 24-5-10-18.
530	530	31 (24) A violation of IC 24-5-11 (concerning real property
531	531	32 improvement contracts), as set forth in IC 24-5-11-14.
532	532	33 (25) A violation of IC 24-5-12 (concerning telephone
533	533	34 solicitations), as set forth in IC 24-5-12-23.
534	534	35 (26) A violation of IC 24-5-13.5 (concerning buyback motor
535	535	36 vehicles), as set forth in IC 24-5-13.5-14.
536	536	37 (27) A violation of IC 24-5-14 (concerning automatic
537	537	38 dialing-announcing devices), as set forth in IC 24-5-14-13.
538	538	39 (28) A violation of IC 24-5-15 (concerning credit services
539	539	40 organizations), as set forth in IC 24-5-15-11.
540	540	41 (29) A violation of IC 24-5-16 (concerning unlawful motor
541	541	42 vehicle subleasing), as set forth in IC 24-5-16-18.
542	542	2024 IN 1313—LS 6201/DI 149 13
543	543	1 (30) A violation of IC 24-5-17 (concerning environmental
544	544	2 marketing claims), as set forth in IC 24-5-17-14.
545	545	3 (31) A violation of IC 24-5-19 (concerning deceptive commercial
546	546	4 solicitation), as set forth in IC 24-5-19-11.
547	547	5 (32) A violation of IC 24-5-21 (concerning prescription drug
548	548	6 discount cards), as set forth in IC 24-5-21-7.
549	549	7 (33) A violation of IC 24-5-23.5-7 (concerning real estate
550	550	8 appraisals), as set forth in IC 24-5-23.5-9.
551	551	9 (34) A violation of IC 24-5-26 (concerning identity theft), as set
552	552	10 forth in IC 24-5-26-3.
553	553	11 (35) A violation of IC 24-5.5 (concerning mortgage rescue fraud),
554	554	12 as set forth in IC 24-5.5-6-1.
555	555	13 (36) A violation of IC 24-8 (concerning promotional gifts and
556	556	14 contests), as set forth in IC 24-8-6-3.
557	557	15 (37) A violation of IC 21-18.5-6 (concerning representations
558	558	16 made by a postsecondary credit bearing proprietary educational
559	559	17 institution), as set forth in IC 21-18.5-6-22.5.
560	560	18 (38) A violation of IC 24-5-15.5 (concerning collection actions of
561	561	19 a plaintiff debt buyer), as set forth in IC 24-5-15.5-6.
562	562	20 (39) A violation of IC 24-14 (concerning towing services), as set
563	563	21 forth in IC 24-14-10-1.
564	564	22 (40) A violation of IC 24-5-14.5 (concerning misleading or
565	565	23 inaccurate caller identification information), as set forth in
566	566	24 IC 24-5-14.5-12.
567	567	25 (41) A violation of IC 24-5-27 (concerning intrastate inmate
568	568	26 calling services), as set forth in IC 24-5-27-27.
569	569	27 (42) A violation of IC 32-29.5 (concerning principal dwelling
570	570	28 land contracts), as set forth in IC 32-29.5-6-4.
571	571	29 (c) Any representations on or within a product or its packaging or
572	572	30 in advertising or promotional materials which would constitute a
573	573	31 deceptive act shall be the deceptive act both of the supplier who places
574	574	32 such representation thereon or therein, or who authored such materials,
575	575	33 and such other suppliers who shall state orally or in writing that such
576	576	34 representation is true if such other supplier shall know or have reason
577	577	35 to know that such representation was false.
578	578	36 (d) If a supplier shows by a preponderance of the evidence that an
579	579	37 act resulted from a bona fide error notwithstanding the maintenance of
580	580	38 procedures reasonably adopted to avoid the error, such act shall not be
581	581	39 deceptive within the meaning of this chapter.
582	582	40 (e) It shall be a defense to any action brought under this chapter that
583	583	41 the representation constituting an alleged deceptive act was one made
584	584	42 in good faith by the supplier without knowledge of its falsity and in
585	585	2024 IN 1313—LS 6201/DI 149 14
586	586	1 reliance upon the oral or written representations of the manufacturer,
587	587	2 the person from whom the supplier acquired the product, any testing
588	588	3 organization, or any other person provided that the source thereof is
589	589	4 disclosed to the consumer.
590	590	5 (f) For purposes of subsection (b)(12), a supplier that provides
591	591	6 estimates before performing repair or replacement work for a customer
592	592	7 shall give the customer a written estimate itemizing as closely as
593	593	8 possible the price for labor and parts necessary for the specific job
594	594	9 before commencing the work.
595	595	10 (g) For purposes of subsection (b)(15) and (b)(16), a telephone
596	596	11 company or other provider of a telephone directory or directory
597	597	12 assistance service or its officer or agent is immune from liability for
598	598	13 publishing the listing of an alternate business name or assumed
599	599	14 business name of a supplier in its directory or directory assistance data
600	600	15 base unless the telephone company or other provider of a telephone
601	601	16 directory or directory assistance service is the same person as the
602	602	17 supplier who has committed the deceptive act.
603	603	18 (h) For purposes of subsection (b)(18), it is an affirmative defense
604	604	19 to any action brought under this chapter that the product has been
605	605	20 altered by a person other than the defendant to render the product
606	606	21 completely incapable of serving its original purpose.
607	607	22 SECTION 3. IC 32-29.5 IS ADDED TO THE INDIANA CODE AS
608	608	23 A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE UPON
609	609	24 PASSAGE]:
610	610	25 ARTICLE 29.5. PRINCIPAL DWELLING LAND
611	611	26 CONTRACTS
612	612	27 Chapter 1. Application
613	613	28 Sec. 1. This article applies only to a principal dwelling land
614	614	29 contract entered into after June 30, 2024.
615	615	30 Sec. 2. This article applies to a seller who sells real property
616	616	31 under a principal dwelling land contract.
617	617	32 Sec. 3. This article does not apply to the following:
618	618	33 (1) A depository institution regulated by a state or federal
619	619	34 agency, and subsidiaries owned and controlled by the
620	620	35 depository institution.
621	621	36 (2) A first lien mortgage lender licensed under IC 24-4.4, and
622	622	37 subsidiaries owned and controlled by the first lien mortgage
623	623	38 lender.
624	624	39 (3) Transactions between family members.
625	625	40 Chapter 2. Definitions
626	626	41 Sec. 1. The definitions set forth in this chapter apply throughout
627	627	42 this article.
628	628	2024 IN 1313—LS 6201/DI 149 15
629	629	1 Sec. 2. "Land contract" has the meaning set forth in
630	630	2 IC 24-4.4-1-301(36).
631	631	3 Sec. 3. (a) "Principal dwelling land contract" means a land
632	632	4 contract for the sale of real property:
633	633	5 (1) designed primarily for the occupancy of one (1) to two (2)
634	634	6 families; and
635	635	7 (2) that is or will be occupied by a buyer as the buyer's
636	636	8 principal dwelling.
637	637	9 (b) The term does not include a land contract for the sale of:
638	638	10 (1) more than ten (10) acres of land; or
639	639	11 (2) vacant land.
640	640	12 Chapter 3. Principal Dwelling Land Contracts and Disclosures
641	641	13 Sec. 1. (a) At least ten (10) days before a principal dwelling land
642	642	14 contract is executed by the parties, the seller shall provide the
643	643	15 buyer with a complete record of any liens encumbering the
644	644	16 property, including any property tax liens or special assessment
645	645	17 liens.
646	646	18 (b) The principal dwelling land contract must include the date
647	647	19 that the record of any liens was provided to the buyer, as required
648	648	20 under subsection (a).
649	649	21 Sec. 2. A principal dwelling land contract must include the
650	650	22 following information:
651	651	23 (1) If the real property is encumbered by one (1) or more
652	652	24 liens, a statement of the amount of the liens and an agreement
653	653	25 by the seller that the seller shall use a specified portion of
654	654	26 funds received from the buyer under the contract to satisfy
655	655	27 the liens.
656	656	28 (2) The sale price, address, and legal description of the
657	657	29 residential real estate that is the subject of the contract.
658	658	30 (3) A statement of the amount of any down payment or
659	659	31 purchase option fee applied to the purchase price, including
660	660	32 the resulting principal amount remaining to be paid by the
661	661	33 buyer for the remainder of the contract.
662	662	34 (4) The term of the contract expressed in years and months,
663	663	35 and the total number of periodic payments due under the
664	664	36 contract.
665	665	37 (5) The amount of any balloon payment, and when the balloon
666	666	38 payment is due.
667	667	39 (6) A statement setting forth whether the seller or buyer is
668	668	40 responsible for paying real estate taxes and insurance with
669	669	41 respect to the real estate, including the procedures necessary
670	670	42 for the timely invoicing and payment of those amounts. In any
671	671	2024 IN 1313—LS 6201/DI 149 16
672	672	1 case in which responsibility for the payment of real estate
673	673	2 taxes and insurance with respect to the property is not clearly
674	674	3 set forth in the contract, the seller:
675	675	4 (A) is responsible for paying real estate taxes and
676	676	5 insurance when due; and
677	677	6 (B) may not seek reimbursement for those amounts from
678	678	7 the buyer.
679	679	8 (7) Subject to subdivision (6), the amount that will be charged
680	680	9 periodically, if any, during the first year of the contract to pay
681	681	10 real estate taxes.
682	682	11 (8) Subject to subdivision (6), the amount that will be charged
683	683	12 periodically, if any, during the first year of the contract to pay
684	684	13 for insurance.
685	685	14 (9) A statement that any amounts listed under subdivision (7)
686	686	15 or (8) are subject to change each year.
687	687	16 (10) A listing of any unpaid amounts owed for real estate taxes
688	688	17 with respect to the property.
689	689	18 (11) The types of insurance coverage, including property
690	690	19 insurance and title insurance, for the buyer and seller that are
691	691	20 required under, or are to be provided in connection with, the
692	692	21 contract.
693	693	22 (12) A statement setting forth any repairs the buyer is
694	694	23 financially responsible for making to the residential real
695	695	24 estate that is subject to the contract.
696	696	25 (13) A statement setting forth any types of alterations to the
697	697	26 property that must be approved by both the buyer and the
698	698	27 seller before being made, including any requirements to
699	699	28 provide evidence of necessary permits, insurance, and lien
700	700	29 waiver agreements.
701	701	30 Sec. 3. All preexisting liens must be satisfied by the seller by the
702	702	31 end of the principal dwelling land contract term. The payment of
703	703	32 liens that arise after the execution of the principal dwelling land
704	704	33 contract shall be satisfied by the seller before the end of the
705	705	34 contract term unless otherwise set forth in the contract.
706	706	35 Sec. 4. A principal dwelling land contract must permit a buyer
707	707	36 to pay the balance owed on the contract and receive the deed at any
708	708	37 time. A principal dwelling land contract may not impose a
709	709	38 prepayment penalty or additional charge for an early payoff.
710	710	39 Sec. 5. At the time the parties execute the principal dwelling
711	711	40 land contract, the seller shall provide the buyer with one (1) copy
712	712	41 of the executed contract. The principal dwelling land contract
713	713	42 must:
714	714	2024 IN 1313—LS 6201/DI 149 17
715	715	1 (1) be notarized; and
716	716	2 (2) conform to the requirements set forth in IC 36-2-11 for the
717	717	3 recording of documents.
718	718	4 Sec. 6. The buyer or seller is not bound by a principal dwelling
719	719	5 land contract during the three (3) business days immediately
720	720	6 following the date of execution of the contract in the contract's full
721	721	7 and final form. At any time during the three (3) day period
722	722	8 described in this section, the buyer or the seller may deliver to the
723	723	9 other party a written notice of cancellation that has the legal effect
724	724	10 of canceling the transaction. If a notice of cancellation is delivered
725	725	11 by either the buyer or the seller to the other party during the three
726	726	12 (3) day period described in this section, the following apply:
727	727	13 (1) The buyer shall, not later than twenty-four (24) hours
728	728	14 after receipt or delivery of the notice of cancellation:
729	729	15 (A) surrender possession of the real estate that is the
730	730	16 subject of the transaction back to the seller; and
731	731	17 (B) return any keys or other devices that may be used to
732	732	18 access the property to the seller or the seller's agent.
733	733	19 (2) The seller shall, not later than two (2) business days after
734	734	20 being placed back into possession of the real estate, return all
735	735	21 monies paid by the buyer, including any down payments, fees,
736	736	22 or regular payments made in connection with the transaction.
737	737	23 Neither the buyer nor the seller may waive the three (3) day
738	738	24 cancellation period provided for by this section, by contract or
739	739	25 otherwise.
740	740	26 Sec. 7. The seller shall record the executed principal dwelling
741	741	27 land contract or memorandum of land contract not later than
742	742	28 thirty (30) days after the contract or memorandum is executed and
743	743	29 notarized. The buyer may record the executed and notarized
744	744	30 principal dwelling land contract or memorandum of land contract
745	745	31 at any time. The recording shall be done in the county where the
746	746	32 real property is located.
747	747	33 Sec. 8. After a principal dwelling land contract is recorded
748	748	34 under section 7 of this chapter, the seller may transfer the seller's
749	749	35 interest in the real estate that is the subject of the principal
750	750	36 dwelling land contract to another person through a recorded deed.
751	751	37 The interest transferred is subject to the recorded principal
752	752	38 dwelling land contract. The transferee shall provide to the buyer
753	753	39 under the principal dwelling land contract written notice of the
754	754	40 transfer. The notice required by this section shall be provided by
755	755	41 first class mail and by certified mail, return receipt requested, and
756	756	42 must include the following:
757	757	2024 IN 1313—LS 6201/DI 149 18
758	758	1 (1) A copy of the recorded warranty deed transferring the
759	759	2 seller's interest in the real estate to the transferee.
760	760	3 (2) The telephone number of the transferee.
761	761	4 (3) The address to which payments under the principal
762	762	5 dwelling land contract must be sent.
763	763	6 Sec. 9. (a) Subject to subsection (b), after a principal dwelling
764	764	7 land contract is recorded under section 7 of this chapter, the buyer
765	765	8 under the principal dwelling land contract may transfer the
766	766	9 buyer's:
767	767	10 (1) interest in the real estate that is the subject of the contract,
768	768	11 as of the date of the transfer; and
769	769	12 (2) rights and obligations under the contract, as of the date of
770	770	13 the transfer;
771	771	14 to a subsequent buyer.
772	772	15 (b) A transfer of a buyer's interest, rights, and obligations
773	773	16 described in subsection (a) is subject to the following:
774	774	17 (1) The recorded principal dwelling land contract must not
775	775	18 contain a provision specifying that the buyer's:
776	776	19 (A) interest in the real estate; and
777	777	20 (B) rights and obligations under the contract;
778	778	21 are not transferable or assignable during the term of the
779	779	22 contract.
780	780	23 (2) The buyer and seller under the recorded principal
781	781	24 dwelling land contract must provide the subsequent buyer
782	782	25 with the following:
783	783	26 (A) All applicable information, forms, and statements
784	784	27 required under section 1 of this chapter, current as of the
785	785	28 date of the transfer.
786	786	29 (B) All disclosures required under section 2 of this chapter,
787	787	30 current as of the date of the transfer.
788	788	31 (3) After the buyer's:
789	789	32 (A) interest in the real estate; and
790	790	33 (B) rights and obligations under the recorded principal
791	791	34 dwelling land contract;
792	792	35 are transferred to the subsequent buyer, sections 4 through 8
793	793	36 of this chapter apply with respect to the seller and the
794	794	37 subsequent buyer.
795	795	38 Chapter 4. Statement of Account
796	796	39 Sec. 1. Before January 31 of each year, the seller shall provide
797	797	40 the buyer with a written statement of account for the previous
798	798	41 calendar year. The statement must include the following:
799	799	42 (1) A record of all payments made by the buyer.
800	800	2024 IN 1313—LS 6201/DI 149 19
801	801	1 (2) If applicable, a record of all payments made by the seller
802	802	2 to satisfy any liens, and to whom the payments were made.
803	803	3 (3) The payoff amount as of the end of the previous calendar
804	804	4 year.
805	805	5 Chapter 5. Buyer Default
806	806	6 Sec. 1. If a buyer fails to make three (3) consecutive, timely
807	807	7 payments as required under a principal dwelling land contract, the
808	808	8 buyer is in default of the contract. If:
809	809	9 (1) the buyer has made timely payments under the contract
810	810	10 for at least one (1) year; or
811	811	11 (2) the amount of all payments made by the buyer under the
812	812	12 contract, including any down payment or prepayment, is at
813	813	13 least thirty percent (30%) of the purchase price;
814	814	14 the seller shall send the buyer, not later than ten (10) days after the
815	815	15 missed payments, a notice of default.
816	816	16 Sec. 2. A seller shall give a buyer an opportunity to cure within
817	817	17 sixty (60) days after the date of receipt of the notice provided to the
818	818	18 buyer under section 1 of this chapter. If the buyer fails to exercise
819	819	19 the right to cure, the seller may begin foreclosure proceedings
820	820	20 against the buyer.
821	821	21 Sec. 3. Forfeiture of possession of the real estate that is the
822	822	22 subject of a principal dwelling land contract is available as a
823	823	23 remedy to the seller upon any act or omission of the buyer that
824	824	24 constitutes a default under the terms of the contract, only if either
825	825	25 or both of the following apply:
826	826	26 (1) The real estate has been abandoned by the buyer.
827	827	27 (2) Both of the following apply:
828	828	28 (A) The amount of all payments made by the buyer under
829	829	29 the contract, including any down payment or prepayment,
830	830	30 is less than ten percent (10%) of the purchase price.
831	831	31 (B) The seller's security interest in the real estate has been
832	832	32 jeopardized by the acts or omissions of the buyer.
833	833	33 Sec. 4. At any time during the term of a principal dwelling land
834	834	34 contract, a seller shall not force a buyer's default by failing or
835	835	35 refusing to accept a payment.
836	836	36 Chapter 6. Violations
837	837	37 Sec. 1. (a) If a seller fails to provide a complete record of any
838	838	38 liens encumbering the property under IC 32-29.5-3-1, the buyer
839	839	39 has the right, not later than sixty (60) days after the parties execute
840	840	40 the principal dwelling land contract, to:
841	841	41 (1) rescind the contract, subject to subsection (b); or
842	842	42 (2) obtain liquidated damages of up to one (1) month's
843	843	2024 IN 1313—LS 6201/DI 149 20
844	844	1 payment under the contract.
845	845	2 (b) If, at the time a buyer seeks to rescind a principal dwelling
846	846	3 land contract under subsection (a)(1), the contract has been
847	847	4 recorded, the buyer shall:
848	848	5 (1) execute a quitclaim deed to the seller with respect to the
849	849	6 buyer's interest in the real estate as of the date of the
850	850	7 rescission; and
851	851	8 (2) record the quitclaim deed in the county in which the real
852	852	9 estate is located.
853	853	10 The quitclaim deed required under this subsection must contain a
854	854	11 cross-reference to the recorded principal dwelling land contract.
855	855	12 The seller is responsible for all expenses incurred in the drafting
856	856	13 and recording of a quitclaim deed required under this subsection.
857	857	14 However, if the buyer vacates the property and does not execute
858	858	15 and record a release of the principal dwelling land contract not
859	859	16 later than ten (10) days after vacating the property, the seller may
860	860	17 file an action for forfeiture.
861	861	18 (c) If a buyer brings an action under this section and prevails,
862	862	19 the court may award the buyer court costs and reasonable
863	863	20 attorney's fees.
864	864	21 Sec. 2. If a seller fails to send a written statement of account:
865	865	22 (1) that substantially complies with IC 32-29.5-4; and
866	866	23 (2) before March 1 of the year in which it is due;
867	867	24 the buyer is entitled to liquidated damages of up to one (1) month's
868	868	25 payment under the principal dwelling land contract. If a buyer
869	869	26 brings an action under this section and prevails, the court may
870	870	27 award the buyer court costs and reasonable attorney's fees.
871	871	28 Sec. 3. (a) This subsection applies to a principal dwelling land
872	872	29 contract entered into after June 30, 2024. If a seller prepares a
873	873	30 principal dwelling land contract that does not substantially comply
874	874	31 with IC 32-29.5-3, the buyer is entitled to:
875	875	32 (1) liquidated damages of up to one (1) month's payment
876	876	33 under the contract; and
877	877	34 (2) a new principal dwelling land contract containing
878	878	35 substantially identical terms to the original contract, prepared
879	879	36 at the seller's expense, that complies with IC 32-29.5-3.
880	880	37 However, if the seller fails to present the buyer with a new
881	881	38 principal dwelling land contract containing substantially identical
882	882	39 terms that complies with IC 32-29.5-3 within sixty (60) days of
883	883	40 being requested to do so in writing, the buyer is entitled to rescind
884	884	41 the contract, subject to subsection (b).
885	885	42 (b) If, at the time a buyer seeks to rescind a principal dwelling
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887	887	1 land contract under subsection (a), the contract has been recorded,
888	888	2 the buyer shall:
889	889	3 (1) execute a quitclaim deed to the seller with respect to the
890	890	4 buyer's interest in the real estate as of the date of the
891	891	5 rescission; and
892	892	6 (2) record the quitclaim deed in the county in which the real
893	893	7 estate is located.
894	894	8 The quitclaim deed required under this subsection must contain a
895	895	9 cross-reference to the recorded principal dwelling land contract.
896	896	10 The seller is responsible for all expenses incurred in the drafting
897	897	11 and recording of a quitclaim deed required under this subsection.
898	898	12 However, if the buyer vacates the property and does not execute
899	899	13 and record a release of the principal dwelling land contract not
900	900	14 later than ten (10) days after vacating the property, the seller may
901	901	15 file an action for forfeiture.
902	902	16 (c) If a buyer brings an action under this section and prevails,
903	903	17 the court may award the buyer court costs and reasonable
904	904	18 attorney's fees.
905	905	19 Sec. 4. A violation of this article is an incurable deceptive act
906	906	20 that is:
907	907	21 (1) actionable by the attorney general under IC 24-5-0.5-4(c);
908	908	22 and
909	909	23 (2) subject to the penalties and remedies available to the
910	910	24 attorney general under IC 24-5-0.5.
911	911	25 Chapter 7. Seller Default
912	912	26 Sec. 1. (a) If:
913	913	27 (1) the buyer has fulfilled the requirements of the principal
914	914	28 dwelling land contract; and
915	915	29 (2) the seller is unable to transfer title to the buyer without
916	916	30 any assumed liens on the property;
917	917	31 the seller shall pay the buyer liquidated damages in the amount of
918	918	32 twenty-five dollars ($25) per day until each unassumed lien is
919	919	33 satisfied. If a buyer brings an action under this section and
920	920	34 prevails, the court may award the buyer court costs and reasonable
921	921	35 attorney's fees.
922	922	36 (b) This section does not affect the seller's obligation to satisfy
923	923	37 any unassumed lien.
924	924	38 (c) A buyer who has fulfilled the requirements of the principal
925	925	39 dwelling land contract is entitled to possession of the real property
926	926	40 with no further payments due to the seller.
927	927	41 Chapter 8. Rulemaking
928	928	42 Sec. 1. The attorney general, in consultation with the
929	929	2024 IN 1313—LS 6201/DI 149 22
930	930	1 department of financial institutions, may adopt rules under
931	931	2 IC 4-22-2 to implement this article.
932	932	3 SECTION 4. An emergency is declared for this act.
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