Indiana 2025 Regular Session

Indiana House Bill HB1084 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. 1084
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 8, 2025, read first time and referred to Committee on Judiciary.
37	37	2025 IN 1084—LS 6113/DI 151 Introduced
38	38	First Regular Session of the 124th General Assembly (2025)
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 2024 Regular Session of the General Assembly.
48	48	HOUSE BILL No. 1084
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.156-2024,
53	53	2 SECTION 11, AND AS AMENDED BY P.L.136-2024, SECTION 14,
54	54	3 AND AS AMENDED BY THE TECHNICAL CORRECTIONS BILL
55	55	4 OF THE 2025 GENERAL ASSEMBLY, IS CORRECTED AND
56	56	5 AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
57	57	6 PASSAGE]: Sec. 37. (a) The following definitions apply throughout
58	58	7 this section:
59	59	8 (1) "Dwelling" means any of the following:
60	60	9 (A) Residential real property improvements that an individual
61	61	10 uses as the individual's residence, limited to a single house and
62	62	11 a single garage, regardless of whether the single garage is
63	63	12 attached to the single house or detached from the single house.
64	64	13 (B) A mobile home that is not assessed as real property that an
65	65	14 individual uses as the individual's residence.
66	66	15 (C) A manufactured home that is not assessed as real property
67	67	16 that an individual uses as the individual's residence.
68	68	17 (2) "Homestead" means an individual's principal place of
69	69	2025 IN 1084—LS 6113/DI 151 2
70	70	1 residence:
71	71	2 (A) that is located in Indiana;
72	72	3 (B) that:
73	73	4 (i) the individual owns;
74	74	5 (ii) the individual is buying under a contract recorded in the
75	75	6 county recorder's office, or evidenced by a memorandum of
76	76	7 contract recorded in the county recorder's office under
77	77	8 IC 36-2-11-20, that provides that the individual is to pay the
78	78	9 property taxes on the residence, and that obligates the owner
79	79	10 to convey title to the individual upon completion of all of the
80	80	11 individual's contract obligations;
81	81	12 (iii) the individual is entitled to occupy as a
82	82	13 tenant-stockholder (as defined in 26 U.S.C. 216) of a
83	83	14 cooperative housing corporation (as defined in 26 U.S.C.
84	84	15 216); or
85	85	16 (iv) is a residence described in section 17.9 of this chapter
86	86	17 that is owned by a trust if the individual is an individual
87	87	18 described in section 17.9 of this chapter; and
88	88	19 (C) that consists of a dwelling and includes up to one (1) acre
89	89	20 of land immediately surrounding that dwelling, and any of the
90	90	21 following improvements:
91	91	22 (i) Any number of decks, patios, gazebos, or pools.
92	92	23 (ii) One (1) additional building that is not part of the
93	93	24 dwelling if the building is predominantly used for a
94	94	25 residential purpose and is not used as an investment property
95	95	26 or as a rental property.
96	96	27 (iii) One (1) additional residential yard structure other than
97	97	28 a deck, patio, gazebo, or pool.
98	98	29 For purposes of clause (B)(ii), the term includes the principal
99	99	30 residence of an individual who has completed all of the
100	100	31 individual's obligations under a principal dwelling land
101	101	32 contract (as defined in IC 32-29.5-2-3), regardless of whether
102	102	33 or not the seller has conveyed the title. Except as provided in
103	103	34 subsection (q), (r), the term does not include property owned by
104	104	35 a corporation, partnership, limited liability company, or other
105	105	36 entity not described in this subdivision.
106	106	37 (b) Each year a homestead is eligible for a standard deduction from
107	107	38 the assessed value of the homestead for an assessment date. Except as
108	108	39 provided in subsection (m), (n), the deduction provided by this section
109	109	40 applies to property taxes first due and payable for an assessment date
110	110	41 only if an individual has an interest in the homestead described in
111	111	42 subsection (a)(2)(B) on:
112	112	2025 IN 1084—LS 6113/DI 151 3
113	113	1 (1) the assessment date; or
114	114	2 (2) any date in the same year after an assessment date that a
115	115	3 statement is filed under subsection (e) or section 44 of this
116	116	4 chapter, if the property consists of real property.
117	117	5 If more than one (1) individual or entity qualifies property as a
118	118	6 homestead under subsection (a)(2)(B) for an assessment date, only one
119	119	7 (1) standard deduction from the assessed value of the homestead may
120	120	8 be applied for the assessment date. Subject to subsection (c), the
121	121	9 auditor of the county shall record and make the deduction for the
122	122	10 individual or entity qualifying for the deduction.
123	123	11 (c) Except as provided in section 40.5 of this chapter, the total
124	124	12 amount of the deduction that a person may receive under this section
125	125	13 for a particular year is the lesser of:
126	126	14 (1) sixty percent (60%) of the assessed value of the real property,
127	127	15 mobile home not assessed as real property, or manufactured home
128	128	16 not assessed as real property; or
129	129	17 (2) for assessment dates:
130	130	18 (A) before January 1, 2023, forty-five thousand dollars
131	131	19 ($45,000); or
132	132	20 (B) after December 31, 2022, forty-eight thousand dollars
133	133	21 ($48,000).
134	134	22 (d) A person who has sold real property, a mobile home not assessed
135	135	23 as real property, or a manufactured home not assessed as real property
136	136	24 to another person under a contract that provides that the contract buyer
137	137	25 is to pay the property taxes on the real property, mobile home, or
138	138	26 manufactured home may not claim the deduction provided under this
139	139	27 section with respect to that real property, mobile home, or
140	140	28 manufactured home.
141	141	29 (e) Except as provided in sections 17.8 and 44 of this chapter and
142	142	30 subject to section 45 of this chapter, an individual who desires to claim
143	143	31 the deduction provided by this section must file a certified statement,
144	144	32 on forms prescribed by the department of local government finance,
145	145	33 with the auditor of the county in which the homestead is located. The
146	146	34 statement must include:
147	147	35 (1) the parcel number or key number of the property and the name
148	148	36 of the city, town, or township in which the property is located;
149	149	37 (2) the name of any other location in which the applicant or the
150	150	38 applicant's spouse owns, is buying, or has a beneficial interest in
151	151	39 residential real property;
152	152	40 (3) the names of:
153	153	41 (A) the applicant and the applicant's spouse (if any):
154	154	42 (i) as the names appear in the records of the United States
155	155	2025 IN 1084—LS 6113/DI 151 4
156	156	1 Social Security Administration for the purposes of the
157	157	2 issuance of a Social Security card and Social Security
158	158	3 number; or
159	159	4 (ii) that they use as their legal names when they sign their
160	160	5 names on legal documents;
161	161	6 if the applicant is an individual; or
162	162	7 (B) each individual who qualifies property as a homestead
163	163	8 under subsection (a)(2)(B) and the individual's spouse (if any):
164	164	9 (i) as the names appear in the records of the United States
165	165	10 Social Security Administration for the purposes of the
166	166	11 issuance of a Social Security card and Social Security
167	167	12 number; or
168	168	13 (ii) that they use as their legal names when they sign their
169	169	14 names on legal documents;
170	170	15 if the applicant is not an individual; and
171	171	16 (4) either:
172	172	17 (A) the last five (5) digits of the applicant's Social Security
173	173	18 number and the last five (5) digits of the Social Security
174	174	19 number of the applicant's spouse (if any); or
175	175	20 (B) if the applicant or the applicant's spouse (if any) does not
176	176	21 have a Social Security number, any of the following for that
177	177	22 individual:
178	178	23 (i) The last five (5) digits of the individual's driver's license
179	179	24 number.
180	180	25 (ii) The last five (5) digits of the individual's state
181	181	26 identification card number.
182	182	27 (iii) The last five (5) digits of a preparer tax identification
183	183	28 number that is obtained by the individual through the
184	184	29 Internal Revenue Service of the United States.
185	185	30 (iv) If the individual does not have a driver's license, a state
186	186	31 identification card, or an Internal Revenue Service preparer
187	187	32 tax identification number, the last five (5) digits of a control
188	188	33 number that is on a document issued to the individual by the
189	189	34 United States government.
190	190	35 If a form or statement provided to the county auditor under this section,
191	191	36 IC 6-1.1-22-8.1, or IC 6-1.1-22.5-12 includes the telephone number or
192	192	37 part or all of the Social Security number of a party or other number
193	193	38 described in subdivision (4)(B) of a party, the telephone number and
194	194	39 the Social Security number or other number described in subdivision
195	195	40 (4)(B) included are confidential. The statement may be filed in person
196	196	41 or by mail. If the statement is mailed, the mailing must be postmarked
197	197	42 on or before the last day for filing. The statement applies for that first
198	198	2025 IN 1084—LS 6113/DI 151 5
199	199	1 year and any succeeding year for which the deduction is allowed. To
200	200	2 obtain the deduction for a desired calendar year in which property
201	201	3 taxes are first due and payable, the statement must be completed and
202	202	4 dated in the immediately preceding calendar year and filed with the
203	203	5 county auditor on or before January 5 of the calendar year in which
204	204	6 the property taxes are first due and payable.
205	205	7 (f) To obtain the deduction for a desired calendar year under this
206	206	8 section in which property taxes are first due and payable, the
207	207	9 individual desiring to claim the deduction must do the following as
208	208	10 applicable:
209	209	11 (1) Complete, date, and file the certified statement described in
210	210	12 subsection (e) on or before January 15 of the calendar year in
211	211	13 which the property taxes are first due and payable.
212	212	14 (2) Satisfy any recording requirements on or before January 15
213	213	15 of the calendar year in which the property taxes are first due and
214	214	16 payable for a homestead described in subsection (a)(2).
215	215	17 (f) (g) Except as provided in subsection (k), (l), if a person who is
216	216	18 receiving, or seeks to receive, the deduction provided by this section in
217	217	19 the person's name:
218	218	20 (1) changes the use of the individual's property so that part or all
219	219	21 of the property no longer qualifies for the deduction under this
220	220	22 section; or
221	221	23 (2) is not eligible for a deduction under this section because the
222	222	24 person is already receiving:
223	223	25 (A) a deduction under this section in the person's name as an
224	224	26 individual or a spouse; or
225	225	27 (B) a deduction under the law of another state that is
226	226	28 equivalent to the deduction provided by this section;
227	227	29 the person must file a certified statement with the auditor of the county,
228	228	30 notifying the auditor of the person's ineligibility, not more than sixty
229	229	31 (60) days after the date of the change in eligibility. A person who fails
230	230	32 to file the statement required by this subsection may, under
231	231	33 IC 6-1.1-36-17, be liable for any additional taxes that would have been
232	232	34 due on the property if the person had filed the statement as required by
233	233	35 this subsection plus a civil penalty equal to ten percent (10%) of the
234	234	36 additional taxes due. The civil penalty imposed under this subsection
235	235	37 is in addition to any interest and penalties for a delinquent payment that
236	236	38 might otherwise be due. One percent (1%) of the total civil penalty
237	237	39 collected under this subsection shall be transferred by the county to the
238	238	40 department of local government finance for use by the department in
239	239	41 establishing and maintaining the homestead property data base under
240	240	42 subsection (i) (j) and, to the extent there is money remaining, for any
241	241	2025 IN 1084—LS 6113/DI 151 6
242	242	1 other purposes of the department. This amount becomes part of the
243	243	2 property tax liability for purposes of this article.
244	244	3 (g) (h) The department of local government finance may adopt rules
245	245	4 or guidelines concerning the application for a deduction under this
246	246	5 section.
247	247	6 (h) (i) This subsection does not apply to property in the first year for
248	248	7 which a deduction is claimed under this section if the sole reason that
249	249	8 a deduction is claimed on other property is that the individual or
250	250	9 married couple maintained a principal residence at the other property
251	251	10 on the assessment date in the same year in which an application for a
252	252	11 deduction is filed under this section or, if the application is for a
253	253	12 homestead that is assessed as personal property, on the assessment date
254	254	13 in the immediately preceding year and the individual or married couple
255	255	14 is moving the individual's or married couple's principal residence to the
256	256	15 property that is the subject of the application. Except as provided in
257	257	16 subsection (k), (l), the county auditor may not grant an individual or a
258	258	17 married couple a deduction under this section if:
259	259	18 (1) the individual or married couple, for the same year, claims the
260	260	19 deduction on two (2) or more different applications for the
261	261	20 deduction; and
262	262	21 (2) the applications claim the deduction for different property.
263	263	22 (i) (j) The department of local government finance shall provide
264	264	23 secure access to county auditors to a homestead property data base that
265	265	24 includes access to the homestead owner's name and the numbers
266	266	25 required from the homestead owner under subsection (e)(4) for the sole
267	267	26 purpose of verifying whether an owner is wrongly claiming a deduction
268	268	27 under this chapter or a credit under IC 6-1.1-20.4, IC 6-1.1-20.6, or
269	269	28 IC 6-3.6-5 (after December 31, 2016). Each county auditor shall submit
270	270	29 data on deductions applicable to the current tax year on or before
271	271	30 March 15 of each year in a manner prescribed by the department of
272	272	31 local government finance.
273	273	32 (j) (k) A county auditor may require an individual to provide
274	274	33 evidence proving that the individual's residence is the individual's
275	275	34 principal place of residence as claimed in the certified statement filed
276	276	35 under subsection (e). The county auditor may limit the evidence that an
277	277	36 individual is required to submit to a state income tax return, a valid
278	278	37 driver's license, or a valid voter registration card showing that the
279	279	38 residence for which the deduction is claimed is the individual's
280	280	39 principal place of residence. The county auditor may not deny an
281	281	40 application filed under section 44 of this chapter because the applicant
282	282	41 does not have a valid driver's license or state identification card with
283	283	42 the address of the homestead property. The department of local
284	284	2025 IN 1084—LS 6113/DI 151 7
285	285	1 government finance shall work with county auditors to develop
286	286	2 procedures to determine whether a property owner that is claiming a
287	287	3 standard deduction or homestead credit is not eligible for the standard
288	288	4 deduction or homestead credit because the property owner's principal
289	289	5 place of residence is outside Indiana.
290	290	6 (k) (l) A county auditor shall grant an individual a deduction under
291	291	7 this section regardless of whether the individual and the individual's
292	292	8 spouse claim a deduction on two (2) different applications and each
293	293	9 application claims a deduction for different property if the property
294	294	10 owned by the individual's spouse is located outside Indiana and the
295	295	11 individual files an affidavit with the county auditor containing the
296	296	12 following information:
297	297	13 (1) The names of the county and state in which the individual's
298	298	14 spouse claims a deduction substantially similar to the deduction
299	299	15 allowed by this section.
300	300	16 (2) A statement made under penalty of perjury that the following
301	301	17 are true:
302	302	18 (A) That the individual and the individual's spouse maintain
303	303	19 separate principal places of residence.
304	304	20 (B) That neither the individual nor the individual's spouse has
305	305	21 an ownership interest in the other's principal place of
306	306	22 residence.
307	307	23 (C) That neither the individual nor the individual's spouse has,
308	308	24 for that same year, claimed a standard or substantially similar
309	309	25 deduction for any property other than the property maintained
310	310	26 as a principal place of residence by the respective individuals.
311	311	27 A county auditor may require an individual or an individual's spouse to
312	312	28 provide evidence of the accuracy of the information contained in an
313	313	29 affidavit submitted under this subsection. The evidence required of the
314	314	30 individual or the individual's spouse may include state income tax
315	315	31 returns, excise tax payment information, property tax payment
316	316	32 information, driver driver's license information, and voter registration
317	317	33 information.
318	318	34 (l) (m) If:
319	319	35 (1) a property owner files a statement under subsection (e) to
320	320	36 claim the deduction provided by this section for a particular
321	321	37 property; and
322	322	38 (2) the county auditor receiving the filed statement determines
323	323	39 that the property owner's property is not eligible for the deduction;
324	324	40 the county auditor shall inform the property owner of the county
325	325	41 auditor's determination in writing. If a property owner's property is not
326	326	42 eligible for the deduction because the county auditor has determined
327	327	2025 IN 1084—LS 6113/DI 151 8
328	328	1 that the property is not the property owner's principal place of
329	329	2 residence, the property owner may appeal the county auditor's
330	330	3 determination as provided in IC 6-1.1-15. The county auditor shall
331	331	4 inform the property owner of the owner's right to appeal when the
332	332	5 county auditor informs the property owner of the county auditor's
333	333	6 determination under this subsection.
334	334	7 (m) (n) An individual is entitled to the deduction under this section
335	335	8 for a homestead for a particular assessment date if:
336	336	9 (1) either:
337	337	10 (A) the individual's interest in the homestead as described in
338	338	11 subsection (a)(2)(B) is conveyed to the individual after the
339	339	12 assessment date, but within the calendar year in which the
340	340	13 assessment date occurs; or
341	341	14 (B) the individual contracts to purchase the homestead after
342	342	15 the assessment date, but within the calendar year in which the
343	343	16 assessment date occurs;
344	344	17 (2) on the assessment date:
345	345	18 (A) the property on which the homestead is currently located
346	346	19 was vacant land; or
347	347	20 (B) the construction of the dwelling that constitutes the
348	348	21 homestead was not completed; and
349	349	22 (3) either:
350	350	23 (A) the individual files the certified statement required by
351	351	24 subsection (e); or
352	352	25 (B) a sales disclosure form that meets the requirements of
353	353	26 section 44 of this chapter is submitted to the county assessor
354	354	27 on or before December 31 of the calendar year for the
355	355	28 individual's purchase of the homestead.
356	356	29 An individual who satisfies the requirements of subdivisions (1)
357	357	30 through (3) is entitled to the deduction under this section for the
358	358	31 homestead for the assessment date, even if on the assessment date the
359	359	32 property on which the homestead is currently located was vacant land
360	360	33 or the construction of the dwelling that constitutes the homestead was
361	361	34 not completed. The county auditor shall apply the deduction for the
362	362	35 assessment date and for the assessment date in any later year in which
363	363	36 the homestead remains eligible for the deduction. A homestead that
364	364	37 qualifies for the deduction under this section as provided in this
365	365	38 subsection is considered a homestead for purposes of section 37.5 of
366	366	39 this chapter and IC 6-1.1-20.6.
367	367	40 (n) (o) This subsection applies to an application for the deduction
368	368	41 provided by this section that is filed for an assessment date occurring
369	369	42 after December 31, 2013. Notwithstanding any other provision of this
370	370	2025 IN 1084—LS 6113/DI 151 9
371	371	1 section, an individual buying a mobile home that is not assessed as real
372	372	2 property or a manufactured home that is not assessed as real property
373	373	3 under a contract providing that the individual is to pay the property
374	374	4 taxes on the mobile home or manufactured home is not entitled to the
375	375	5 deduction provided by this section unless the parties to the contract
376	376	6 comply with IC 9-17-6-17.
377	377	7 (o) (p) This subsection:
378	378	8 (1) applies to an application for the deduction provided by this
379	379	9 section that is filed for an assessment date occurring after
380	380	10 December 31, 2013; and
381	381	11 (2) does not apply to an individual described in subsection (n).
382	382	12 (o).
383	383	13 The owner of a mobile home that is not assessed as real property or a
384	384	14 manufactured home that is not assessed as real property must attach a
385	385	15 copy of the owner's title to the mobile home or manufactured home to
386	386	16 the application for the deduction provided by this section.
387	387	17 (p) (q) For assessment dates after 2013, the term "homestead"
388	388	18 includes property that is owned by an individual who:
389	389	19 (1) is serving on active duty in any branch of the armed forces of
390	390	20 the United States;
391	391	21 (2) was ordered to transfer to a location outside Indiana; and
392	392	22 (3) was otherwise eligible, without regard to this subsection, for
393	393	23 the deduction under this section for the property for the
394	394	24 assessment date immediately preceding the transfer date specified
395	395	25 in the order described in subdivision (2).
396	396	26 For property to qualify under this subsection for the deduction provided
397	397	27 by this section, the individual described in subdivisions (1) through (3)
398	398	28 must submit to the county auditor a copy of the individual's transfer
399	399	29 orders or other information sufficient to show that the individual was
400	400	30 ordered to transfer to a location outside Indiana. The property continues
401	401	31 to qualify for the deduction provided by this section until the individual
402	402	32 ceases to be on active duty, the property is sold, or the individual's
403	403	33 ownership interest is otherwise terminated, whichever occurs first.
404	404	34 Notwithstanding subsection (a)(2), the property remains a homestead
405	405	35 regardless of whether the property continues to be the individual's
406	406	36 principal place of residence after the individual transfers to a location
407	407	37 outside Indiana. The property continues to qualify as a homestead
408	408	38 under this subsection if the property is leased while the individual is
409	409	39 away from Indiana and is serving on active duty, if the individual has
410	410	40 lived at the property at any time during the past ten (10) years.
411	411	41 Otherwise, the property ceases to qualify as a homestead under this
412	412	42 subsection if the property is leased while the individual is away from
413	413	2025 IN 1084—LS 6113/DI 151 10
414	414	1 Indiana. Property that qualifies as a homestead under this subsection
415	415	2 shall also be construed as a homestead for purposes of section 37.5 of
416	416	3 this chapter.
417	417	4 (q) (r) As used in this section, "homestead" includes property that
418	418	5 satisfies each of the following requirements:
419	419	6 (1) The property is located in Indiana and consists of a dwelling
420	420	7 and includes up to one (1) acre of land immediately surrounding
421	421	8 that dwelling, and any of the following improvements:
422	422	9 (A) Any number of decks, patios, gazebos, or pools.
423	423	10 (B) One (1) additional building that is not part of the dwelling
424	424	11 if the building is predominately used for a residential purpose
425	425	12 and is not used as an investment property or as a rental
426	426	13 property.
427	427	14 (C) One (1) additional residential yard structure other than a
428	428	15 deck, patio, gazebo, or pool.
429	429	16 (2) The property is the principal place of residence of an
430	430	17 individual.
431	431	18 (3) The property is owned by an entity that is not described in
432	432	19 subsection (a)(2)(B).
433	433	20 (4) The individual residing on the property is a shareholder,
434	434	21 partner, or member of the entity that owns the property.
435	435	22 (5) The property was eligible for the standard deduction under
436	436	23 this section on March 1, 2009.
437	437	24 SECTION 2. IC 24-5-0.5-3, AS AMENDED BY P.L.104-2024,
438	438	25 SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
439	439	26 UPON PASSAGE]: Sec. 3. (a) A supplier may not commit an unfair,
440	440	27 abusive, or deceptive act, omission, or practice in connection with a
441	441	28 consumer transaction. Such an act, omission, or practice by a supplier
442	442	29 is a violation of this chapter whether it occurs before, during, or after
443	443	30 the transaction. An act, omission, or practice prohibited by this section
444	444	31 includes both implicit and explicit misrepresentations.
445	445	32 (b) Without limiting the scope of subsection (a), the following acts,
446	446	33 and the following representations as to the subject matter of a
447	447	34 consumer transaction, made orally, in writing, or by electronic
448	448	35 communication, by a supplier, are deceptive acts:
449	449	36 (1) That such subject of a consumer transaction has sponsorship,
450	450	37 approval, performance, characteristics, accessories, uses, or
451	451	38 benefits it does not have which the supplier knows or should
452	452	39 reasonably know it does not have.
453	453	40 (2) That such subject of a consumer transaction is of a particular
454	454	41 standard, quality, grade, style, or model, if it is not and if the
455	455	42 supplier knows or should reasonably know that it is not.
456	456	2025 IN 1084—LS 6113/DI 151 11
457	457	1 (3) That such subject of a consumer transaction is new or unused,
458	458	2 if it is not and if the supplier knows or should reasonably know
459	459	3 that it is not.
460	460	4 (4) That such subject of a consumer transaction will be supplied
461	461	5 to the public in greater quantity than the supplier intends or
462	462	6 reasonably expects.
463	463	7 (5) That replacement or repair constituting the subject of a
464	464	8 consumer transaction is needed, if it is not and if the supplier
465	465	9 knows or should reasonably know that it is not.
466	466	10 (6) That a specific price advantage exists as to such subject of a
467	467	11 consumer transaction, if it does not and if the supplier knows or
468	468	12 should reasonably know that it does not.
469	469	13 (7) That the supplier has a sponsorship, approval, or affiliation in
470	470	14 such consumer transaction the supplier does not have, and which
471	471	15 the supplier knows or should reasonably know that the supplier
472	472	16 does not have.
473	473	17 (8) That such consumer transaction involves or does not involve
474	474	18 a warranty, a disclaimer of warranties, or other rights, remedies,
475	475	19 or obligations, if the representation is false and if the supplier
476	476	20 knows or should reasonably know that the representation is false.
477	477	21 (9) That the consumer will receive a rebate, discount, or other
478	478	22 benefit as an inducement for entering into a sale or lease in return
479	479	23 for giving the supplier the names of prospective consumers or
480	480	24 otherwise helping the supplier to enter into other consumer
481	481	25 transactions, if earning the benefit, rebate, or discount is
482	482	26 contingent upon the occurrence of an event subsequent to the time
483	483	27 the consumer agrees to the purchase or lease.
484	484	28 (10) That the supplier is able to deliver or complete the subject of
485	485	29 the consumer transaction within a stated period of time, when the
486	486	30 supplier knows or should reasonably know the supplier could not.
487	487	31 If no time period has been stated by the supplier, there is a
488	488	32 presumption that the supplier has represented that the supplier
489	489	33 will deliver or complete the subject of the consumer transaction
490	490	34 within a reasonable time, according to the course of dealing or the
491	491	35 usage of the trade.
492	492	36 (11) That the consumer will be able to purchase the subject of the
493	493	37 consumer transaction as advertised by the supplier, if the supplier
494	494	38 does not intend to sell it.
495	495	39 (12) That the replacement or repair constituting the subject of a
496	496	40 consumer transaction can be made by the supplier for the estimate
497	497	41 the supplier gives a customer for the replacement or repair, if the
498	498	42 specified work is completed and:
499	499	2025 IN 1084—LS 6113/DI 151 12
500	500	1 (A) the cost exceeds the estimate by an amount equal to or
501	501	2 greater than ten percent (10%) of the estimate;
502	502	3 (B) the supplier did not obtain written permission from the
503	503	4 customer to authorize the supplier to complete the work even
504	504	5 if the cost would exceed the amounts specified in clause (A);
505	505	6 (C) the total cost for services and parts for a single transaction
506	506	7 is more than seven hundred fifty dollars ($750); and
507	507	8 (D) the supplier knew or reasonably should have known that
508	508	9 the cost would exceed the estimate in the amounts specified in
509	509	10 clause (A).
510	510	11 (13) That the replacement or repair constituting the subject of a
511	511	12 consumer transaction is needed, and that the supplier disposes of
512	512	13 the part repaired or replaced earlier than seventy-two (72) hours
513	513	14 after both:
514	514	15 (A) the customer has been notified that the work has been
515	515	16 completed; and
516	516	17 (B) the part repaired or replaced has been made available for
517	517	18 examination upon the request of the customer.
518	518	19 (14) Engaging in the replacement or repair of the subject of a
519	519	20 consumer transaction if the consumer has not authorized the
520	520	21 replacement or repair, and if the supplier knows or should
521	521	22 reasonably know that it is not authorized.
522	522	23 (15) The act of misrepresenting the geographic location of the
523	523	24 supplier by listing an alternate business name or an assumed
524	524	25 business name (as described in IC 23-0.5-3-4) in a local telephone
525	525	26 directory if:
526	526	27 (A) the name misrepresents the supplier's geographic location;
527	527	28 (B) the listing fails to identify the locality and state of the
528	528	29 supplier's business;
529	529	30 (C) calls to the local telephone number are routinely forwarded
530	530	31 or otherwise transferred to a supplier's business location that
531	531	32 is outside the calling area covered by the local telephone
532	532	33 directory; and
533	533	34 (D) the supplier's business location is located in a county that
534	534	35 is not contiguous to a county in the calling area covered by the
535	535	36 local telephone directory.
536	536	37 (16) The act of listing an alternate business name or assumed
537	537	38 business name (as described in IC 23-0.5-3-4) in a directory
538	538	39 assistance data base if:
539	539	40 (A) the name misrepresents the supplier's geographic location;
540	540	41 (B) calls to the local telephone number are routinely forwarded
541	541	42 or otherwise transferred to a supplier's business location that
542	542	2025 IN 1084—LS 6113/DI 151 13
543	543	1 is outside the local calling area; and
544	544	2 (C) the supplier's business location is located in a county that
545	545	3 is not contiguous to a county in the local calling area.
546	546	4 (17) The violation by a supplier of IC 24-3-4 concerning
547	547	5 cigarettes for import or export.
548	548	6 (18) The act of a supplier in knowingly selling or reselling a
549	549	7 product to a consumer if the product has been recalled, whether
550	550	8 by the order of a court or a regulatory body, or voluntarily by the
551	551	9 manufacturer, distributor, or retailer, unless the product has been
552	552	10 repaired or modified to correct the defect that was the subject of
553	553	11 the recall.
554	554	12 (19) The violation by a supplier of 47 U.S.C. 227, including any
555	555	13 rules or regulations issued under 47 U.S.C. 227.
556	556	14 (20) The violation by a supplier of the federal Fair Debt
557	557	15 Collection Practices Act (15 U.S.C. 1692 et seq.), including any
558	558	16 rules or regulations issued under the federal Fair Debt Collection
559	559	17 Practices Act (15 U.S.C. 1692 et seq.).
560	560	18 (21) A violation of IC 24-5-7 (concerning health spa services), as
561	561	19 set forth in IC 24-5-7-17.
562	562	20 (22) A violation of IC 24-5-8 (concerning business opportunity
563	563	21 transactions), as set forth in IC 24-5-8-20.
564	564	22 (23) A violation of IC 24-5-10 (concerning home consumer
565	565	23 transactions), as set forth in IC 24-5-10-18.
566	566	24 (24) A violation of IC 24-5-11 (concerning real property
567	567	25 improvement contracts), as set forth in IC 24-5-11-14.
568	568	26 (25) A violation of IC 24-5-12 (concerning telephone
569	569	27 solicitations), as set forth in IC 24-5-12-23.
570	570	28 (26) A violation of IC 24-5-13.5 (concerning buyback motor
571	571	29 vehicles), as set forth in IC 24-5-13.5-14.
572	572	30 (27) A violation of IC 24-5-14 (concerning automatic
573	573	31 dialing-announcing devices), as set forth in IC 24-5-14-13.
574	574	32 (28) A violation of IC 24-5-15 (concerning credit services
575	575	33 organizations), as set forth in IC 24-5-15-11.
576	576	34 (29) A violation of IC 24-5-16 (concerning unlawful motor
577	577	35 vehicle subleasing), as set forth in IC 24-5-16-18.
578	578	36 (30) A violation of IC 24-5-17 (concerning environmental
579	579	37 marketing claims), as set forth in IC 24-5-17-14.
580	580	38 (31) A violation of IC 24-5-19 (concerning deceptive commercial
581	581	39 solicitation), as set forth in IC 24-5-19-11.
582	582	40 (32) A violation of IC 24-5-21 (concerning prescription drug
583	583	41 discount cards), as set forth in IC 24-5-21-7.
584	584	42 (33) A violation of IC 24-5-23.5-7 (concerning real estate
585	585	2025 IN 1084—LS 6113/DI 151 14
586	586	1 appraisals), as set forth in IC 24-5-23.5-9.
587	587	2 (34) A violation of IC 24-5-26 (concerning identity theft), as set
588	588	3 forth in IC 24-5-26-3.
589	589	4 (35) A violation of IC 24-5.5 (concerning mortgage rescue fraud),
590	590	5 as set forth in IC 24-5.5-6-1.
591	591	6 (36) A violation of IC 24-8 (concerning promotional gifts and
592	592	7 contests), as set forth in IC 24-8-6-3.
593	593	8 (37) A violation of IC 21-18.5-6 (concerning representations
594	594	9 made by a postsecondary credit bearing proprietary educational
595	595	10 institution), as set forth in IC 21-18.5-6-22.5.
596	596	11 (38) A violation of IC 24-5-15.5 (concerning collection actions of
597	597	12 a plaintiff debt buyer), as set forth in IC 24-5-15.5-6.
598	598	13 (39) A violation of IC 24-14 (concerning towing services), as set
599	599	14 forth in IC 24-14-10-1.
600	600	15 (40) A violation of IC 24-5-14.5 (concerning misleading or
601	601	16 inaccurate caller identification information), as set forth in
602	602	17 IC 24-5-14.5-12.
603	603	18 (41) A violation of IC 24-5-27 (concerning intrastate inmate
604	604	19 calling services), as set forth in IC 24-5-27-27.
605	605	20 (42) A violation of IC 15-21 (concerning sales of dogs by retail
606	606	21 pet stores), as set forth in IC 15-21-7-4.
607	607	22 (43) A violation of IC 24-4-23 (concerning the security of
608	608	23 information collected and transmitted by an adult oriented website
609	609	24 operator), as set forth in IC 24-4-23-14.
610	610	25 (44) A violation of IC 32-29.5 (concerning principal dwelling
611	611	26 land contracts), as set forth in IC 32-29.5-6-4.
612	612	27 (c) Any representations on or within a product or its packaging or
613	613	28 in advertising or promotional materials which would constitute a
614	614	29 deceptive act shall be the deceptive act both of the supplier who places
615	615	30 such representation thereon or therein, or who authored such materials,
616	616	31 and such other suppliers who shall state orally or in writing that such
617	617	32 representation is true if such other supplier shall know or have reason
618	618	33 to know that such representation was false.
619	619	34 (d) If a supplier shows by a preponderance of the evidence that an
620	620	35 act resulted from a bona fide error notwithstanding the maintenance of
621	621	36 procedures reasonably adopted to avoid the error, such act shall not be
622	622	37 deceptive within the meaning of this chapter.
623	623	38 (e) It shall be a defense to any action brought under this chapter that
624	624	39 the representation constituting an alleged deceptive act was one made
625	625	40 in good faith by the supplier without knowledge of its falsity and in
626	626	41 reliance upon the oral or written representations of the manufacturer,
627	627	42 the person from whom the supplier acquired the product, any testing
628	628	2025 IN 1084—LS 6113/DI 151 15
629	629	1 organization, or any other person provided that the source thereof is
630	630	2 disclosed to the consumer.
631	631	3 (f) For purposes of subsection (b)(12), a supplier that provides
632	632	4 estimates before performing repair or replacement work for a customer
633	633	5 shall give the customer a written estimate itemizing as closely as
634	634	6 possible the price for labor and parts necessary for the specific job
635	635	7 before commencing the work.
636	636	8 (g) For purposes of subsection (b)(15) and (b)(16), a telephone
637	637	9 company or other provider of a telephone directory or directory
638	638	10 assistance service or its officer or agent is immune from liability for
639	639	11 publishing the listing of an alternate business name or assumed
640	640	12 business name of a supplier in its directory or directory assistance data
641	641	13 base unless the telephone company or other provider of a telephone
642	642	14 directory or directory assistance service is the same person as the
643	643	15 supplier who has committed the deceptive act.
644	644	16 (h) For purposes of subsection (b)(18), it is an affirmative defense
645	645	17 to any action brought under this chapter that the product has been
646	646	18 altered by a person other than the defendant to render the product
647	647	19 completely incapable of serving its original purpose.
648	648	20 SECTION 3. IC 32-29.5 IS ADDED TO THE INDIANA CODE AS
649	649	21 A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE UPON
650	650	22 PASSAGE]:
651	651	23 ARTICLE 29.5. PRINCIPAL DWELLING LAND
652	652	24 CONTRACTS
653	653	25 Chapter 1. Application
654	654	26 Sec. 1. This article applies only to a principal dwelling land
655	655	27 contract entered into after June 30, 2025.
656	656	28 Sec. 2. This article applies to a seller who sells real property
657	657	29 under a principal dwelling land contract.
658	658	30 Sec. 3. This article does not apply to the following:
659	659	31 (1) A depository institution regulated by a state or federal
660	660	32 agency, and subsidiaries owned and controlled by the
661	661	33 depository institution.
662	662	34 (2) A first lien mortgage lender licensed under IC 24-4.4, and
663	663	35 subsidiaries owned and controlled by the first lien mortgage
664	664	36 lender.
665	665	37 (3) Transactions between family members.
666	666	38 Chapter 2. Definitions
667	667	39 Sec. 1. The definitions set forth in this chapter apply throughout
668	668	40 this article.
669	669	41 Sec. 2. "Land contract" has the meaning set forth in
670	670	42 IC 24-4.4-1-301(36).
671	671	2025 IN 1084—LS 6113/DI 151 16
672	672	1 Sec. 3. (a) "Principal dwelling land contract" means a land
673	673	2 contract for the sale of real property:
674	674	3 (1) designed primarily for the occupancy of one (1) to two (2)
675	675	4 families; and
676	676	5 (2) that is or will be occupied by a buyer as the buyer's
677	677	6 principal dwelling.
678	678	7 (b) The term does not include a land contract for the sale of:
679	679	8 (1) more than ten (10) acres of land; or
680	680	9 (2) vacant land.
681	681	10 Chapter 3. Principal Dwelling Land Contracts and Disclosures
682	682	11 Sec. 1. (a) At least ten (10) days before a principal dwelling land
683	683	12 contract is executed by the parties, the seller shall provide the
684	684	13 buyer with a complete record of any liens encumbering the
685	685	14 property, including any property tax liens or special assessment
686	686	15 liens.
687	687	16 (b) The principal dwelling land contract must include the date
688	688	17 that the record of any liens was provided to the buyer, as required
689	689	18 under subsection (a).
690	690	19 Sec. 2. A principal dwelling land contract must include the
691	691	20 following information:
692	692	21 (1) If the real property is encumbered by one (1) or more
693	693	22 liens, a statement of the amount of the liens and an agreement
694	694	23 by the seller that the seller shall use a specified portion of
695	695	24 funds received from the buyer under the contract to satisfy
696	696	25 the liens.
697	697	26 (2) The sale price, address, and legal description of the
698	698	27 residential real estate that is the subject of the contract.
699	699	28 (3) A statement of the amount of any down payment or
700	700	29 purchase option fee applied to the purchase price, including
701	701	30 the resulting principal amount remaining to be paid by the
702	702	31 buyer for the remainder of the contract.
703	703	32 (4) The term of the contract expressed in years and months,
704	704	33 and the total number of periodic payments due under the
705	705	34 contract.
706	706	35 (5) The amount of any balloon payment, and when the balloon
707	707	36 payment is due.
708	708	37 (6) A statement setting forth whether the seller or buyer is
709	709	38 responsible for paying real estate taxes and insurance with
710	710	39 respect to the real estate, including the procedures necessary
711	711	40 for the timely invoicing and payment of those amounts. In any
712	712	41 case in which responsibility for the payment of real estate
713	713	42 taxes and insurance with respect to the property is not clearly
714	714	2025 IN 1084—LS 6113/DI 151 17
715	715	1 set forth in the contract, the seller:
716	716	2 (A) is responsible for paying real estate taxes and
717	717	3 insurance when due; and
718	718	4 (B) may not seek reimbursement for those amounts from
719	719	5 the buyer.
720	720	6 (7) Subject to subdivision (6), the amount that will be charged
721	721	7 periodically, if any, during the first year of the contract to pay
722	722	8 real estate taxes.
723	723	9 (8) Subject to subdivision (6), the amount that will be charged
724	724	10 periodically, if any, during the first year of the contract to pay
725	725	11 for insurance.
726	726	12 (9) A statement that any amounts listed under subdivision (7)
727	727	13 or (8) are subject to change each year.
728	728	14 (10) A listing of any unpaid amounts owed for real estate taxes
729	729	15 with respect to the property.
730	730	16 (11) The types of insurance coverage, including property
731	731	17 insurance and title insurance, for the buyer and seller that are
732	732	18 required under, or are to be provided in connection with, the
733	733	19 contract.
734	734	20 (12) A statement setting forth any repairs the buyer is
735	735	21 financially responsible for making to the residential real
736	736	22 estate that is subject to the contract.
737	737	23 (13) A statement setting forth any types of alterations to the
738	738	24 property that must be approved by both the buyer and the
739	739	25 seller before being made, including any requirements to
740	740	26 provide evidence of necessary permits, insurance, and lien
741	741	27 waiver agreements.
742	742	28 Sec. 3. All preexisting liens must be satisfied by the seller by the
743	743	29 end of the principal dwelling land contract term. The payment of
744	744	30 liens that arise after the execution of the principal dwelling land
745	745	31 contract shall be satisfied by the seller before the end of the
746	746	32 contract term unless otherwise set forth in the contract.
747	747	33 Sec. 4. A principal dwelling land contract must permit a buyer
748	748	34 to pay the balance owed on the contract and receive the deed at any
749	749	35 time. A principal dwelling land contract may not impose a
750	750	36 prepayment penalty or additional charge for an early payoff.
751	751	37 Sec. 5. At the time the parties execute the principal dwelling
752	752	38 land contract, the seller shall provide the buyer with one (1) copy
753	753	39 of the executed contract. The principal dwelling land contract
754	754	40 must:
755	755	41 (1) be notarized; and
756	756	42 (2) conform to the requirements set forth in IC 36-2-11 for the
757	757	2025 IN 1084—LS 6113/DI 151 18
758	758	1 recording of documents.
759	759	2 Sec. 6. The buyer or seller is not bound by a principal dwelling
760	760	3 land contract during the three (3) business days immediately
761	761	4 following the date of execution of the contract in the contract's full
762	762	5 and final form. At any time during the three (3) day period
763	763	6 described in this section, the buyer or the seller may deliver to the
764	764	7 other party a written notice of cancellation that has the legal effect
765	765	8 of canceling the transaction. If a notice of cancellation is delivered
766	766	9 by either the buyer or the seller to the other party during the three
767	767	10 (3) day period described in this section, the following apply:
768	768	11 (1) The buyer shall, not later than twenty-four (24) hours
769	769	12 after receipt or delivery of the notice of cancellation:
770	770	13 (A) surrender possession of the real estate that is the
771	771	14 subject of the transaction back to the seller; and
772	772	15 (B) return any keys or other devices that may be used to
773	773	16 access the property to the seller or the seller's agent.
774	774	17 (2) The seller shall, not later than two (2) business days after
775	775	18 being placed back into possession of the real estate, return all
776	776	19 monies paid by the buyer, including any down payments, fees,
777	777	20 or regular payments made in connection with the transaction.
778	778	21 Neither the buyer nor the seller may waive the three (3) day
779	779	22 cancellation period provided for by this section, by contract or
780	780	23 otherwise.
781	781	24 Sec. 7. The seller shall record the executed principal dwelling
782	782	25 land contract or memorandum of land contract not later than
783	783	26 thirty (30) days after the contract or memorandum is executed and
784	784	27 notarized. The buyer may record the executed and notarized
785	785	28 principal dwelling land contract or memorandum of land contract
786	786	29 at any time. The recording shall be done in the county where the
787	787	30 real property is located.
788	788	31 Sec. 8. After a principal dwelling land contract is recorded
789	789	32 under section 7 of this chapter, the seller may transfer the seller's
790	790	33 interest in the real estate that is the subject of the principal
791	791	34 dwelling land contract to another person through a recorded deed.
792	792	35 The interest transferred is subject to the recorded principal
793	793	36 dwelling land contract. The transferee shall provide to the buyer
794	794	37 under the principal dwelling land contract written notice of the
795	795	38 transfer. The notice required by this section shall be provided by
796	796	39 first class mail and by certified mail, return receipt requested, and
797	797	40 must include the following:
798	798	41 (1) A copy of the recorded warranty deed transferring the
799	799	42 seller's interest in the real estate to the transferee.
800	800	2025 IN 1084—LS 6113/DI 151 19
801	801	1 (2) The telephone number of the transferee.
802	802	2 (3) The address to which payments under the principal
803	803	3 dwelling land contract must be sent.
804	804	4 Sec. 9. (a) Subject to subsection (b), after a principal dwelling
805	805	5 land contract is recorded under section 7 of this chapter, the buyer
806	806	6 under the principal dwelling land contract may transfer the
807	807	7 buyer's:
808	808	8 (1) interest in the real estate that is the subject of the contract,
809	809	9 as of the date of the transfer; and
810	810	10 (2) rights and obligations under the contract, as of the date of
811	811	11 the transfer;
812	812	12 to a subsequent buyer.
813	813	13 (b) A transfer of a buyer's interest, rights, and obligations
814	814	14 described in subsection (a) is subject to the following:
815	815	15 (1) The recorded principal dwelling land contract must not
816	816	16 contain a provision specifying that the buyer's:
817	817	17 (A) interest in the real estate; and
818	818	18 (B) rights and obligations under the contract;
819	819	19 are not transferable or assignable during the term of the
820	820	20 contract.
821	821	21 (2) The buyer and seller under the recorded principal
822	822	22 dwelling land contract must provide the subsequent buyer
823	823	23 with the following:
824	824	24 (A) All applicable information, forms, and statements
825	825	25 required under section 1 of this chapter, current as of the
826	826	26 date of the transfer.
827	827	27 (B) All disclosures required under section 2 of this chapter,
828	828	28 current as of the date of the transfer.
829	829	29 (3) After the buyer's:
830	830	30 (A) interest in the real estate; and
831	831	31 (B) rights and obligations under the recorded principal
832	832	32 dwelling land contract;
833	833	33 are transferred to the subsequent buyer, sections 4 through 8
834	834	34 of this chapter apply with respect to the seller and the
835	835	35 subsequent buyer.
836	836	36 Chapter 4. Statement of Account
837	837	37 Sec. 1. Before January 31 of each year, the seller shall provide
838	838	38 the buyer with a written statement of account for the previous
839	839	39 calendar year. The statement must include the following:
840	840	40 (1) A record of all payments made by the buyer.
841	841	41 (2) If applicable, a record of all payments made by the seller
842	842	42 to satisfy any liens, and to whom the payments were made.
843	843	2025 IN 1084—LS 6113/DI 151 20
844	844	1 (3) The payoff amount as of the end of the previous calendar
845	845	2 year.
846	846	3 Chapter 5. Buyer Default
847	847	4 Sec. 1. If a buyer fails to make three (3) consecutive, timely
848	848	5 payments as required under a principal dwelling land contract, the
849	849	6 buyer is in default of the contract. If:
850	850	7 (1) the buyer has made timely payments under the contract
851	851	8 for at least one (1) year; or
852	852	9 (2) the amount of all payments made by the buyer under the
853	853	10 contract, including any down payment or prepayment, is at
854	854	11 least thirty percent (30%) of the purchase price;
855	855	12 the seller shall send the buyer, not later than ten (10) days after the
856	856	13 missed payments, a notice of default.
857	857	14 Sec. 2. A seller shall give a buyer an opportunity to cure within
858	858	15 sixty (60) days after the date of receipt of the notice provided to the
859	859	16 buyer under section 1 of this chapter. If the buyer fails to exercise
860	860	17 the right to cure, the seller may begin foreclosure proceedings
861	861	18 against the buyer.
862	862	19 Sec. 3. Forfeiture of possession of the real estate that is the
863	863	20 subject of a principal dwelling land contract is available as a
864	864	21 remedy to the seller upon any act or omission of the buyer that
865	865	22 constitutes a default under the terms of the contract, only if either
866	866	23 or both of the following apply:
867	867	24 (1) The real estate has been abandoned by the buyer.
868	868	25 (2) Both of the following apply:
869	869	26 (A) The amount of all payments made by the buyer under
870	870	27 the contract, including any down payment or prepayment,
871	871	28 is less than ten percent (10%) of the purchase price.
872	872	29 (B) The seller's security interest in the real estate has been
873	873	30 jeopardized by the acts or omissions of the buyer.
874	874	31 Sec. 4. At any time during the term of a principal dwelling land
875	875	32 contract, a seller shall not force a buyer's default by failing or
876	876	33 refusing to accept a payment.
877	877	34 Chapter 6. Violations
878	878	35 Sec. 1. (a) If a seller fails to provide a complete record of any
879	879	36 liens encumbering the property under IC 32-29.5-3-1, the buyer
880	880	37 has the right, not later than sixty (60) days after the parties execute
881	881	38 the principal dwelling land contract, to:
882	882	39 (1) rescind the contract, subject to subsection (b); or
883	883	40 (2) obtain liquidated damages of up to one (1) month's
884	884	41 payment under the contract.
885	885	42 (b) If, at the time a buyer seeks to rescind a principal dwelling
886	886	2025 IN 1084—LS 6113/DI 151 21
887	887	1 land contract under subsection (a)(1), the contract has been
888	888	2 recorded, 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. 2. If a seller fails to send a written statement of account:
906	906	20 (1) that substantially complies with IC 32-29.5-4; and
907	907	21 (2) before March 1 of the year in which it is due;
908	908	22 the buyer is entitled to liquidated damages of up to one (1) month's
909	909	23 payment under the principal dwelling land contract. If a buyer
910	910	24 brings an action under this section and prevails, the court may
911	911	25 award the buyer court costs and reasonable attorney's fees.
912	912	26 Sec. 3. (a) This subsection applies to a principal dwelling land
913	913	27 contract entered into after June 30, 2025. If a seller prepares a
914	914	28 principal dwelling land contract that does not substantially comply
915	915	29 with IC 32-29.5-3, the buyer is entitled to:
916	916	30 (1) liquidated damages of up to one (1) month's payment
917	917	31 under the contract; and
918	918	32 (2) a new principal dwelling land contract containing
919	919	33 substantially identical terms to the original contract, prepared
920	920	34 at the seller's expense, that complies with IC 32-29.5-3.
921	921	35 However, if the seller fails to present the buyer with a new
922	922	36 principal dwelling land contract containing substantially identical
923	923	37 terms that complies with IC 32-29.5-3 within sixty (60) days of
924	924	38 being requested to do so in writing, the buyer is entitled to rescind
925	925	39 the contract, subject to subsection (b).
926	926	40 (b) If, at the time a buyer seeks to rescind a principal dwelling
927	927	41 land contract under subsection (a), the contract has been recorded,
928	928	42 the buyer shall:
929	929	2025 IN 1084—LS 6113/DI 151 22
930	930	1 (1) execute a quitclaim deed to the seller with respect to the
931	931	2 buyer's interest in the real estate as of the date of the
932	932	3 rescission; and
933	933	4 (2) record the quitclaim deed in the county in which the real
934	934	5 estate is located.
935	935	6 The quitclaim deed required under this subsection must contain a
936	936	7 cross-reference to the recorded principal dwelling land contract.
937	937	8 The seller is responsible for all expenses incurred in the drafting
938	938	9 and recording of a quitclaim deed required under this subsection.
939	939	10 However, if the buyer vacates the property and does not execute
940	940	11 and record a release of the principal dwelling land contract not
941	941	12 later than ten (10) days after vacating the property, the seller may
942	942	13 file an action for forfeiture.
943	943	14 (c) If a buyer brings an action under this section and prevails,
944	944	15 the court may award the buyer court costs and reasonable
945	945	16 attorney's fees.
946	946	17 Sec. 4. A violation of this article is an incurable deceptive act
947	947	18 that is:
948	948	19 (1) actionable by the attorney general under IC 24-5-0.5-4(c);
949	949	20 and
950	950	21 (2) subject to the penalties and remedies available to the
951	951	22 attorney general under IC 24-5-0.5.
952	952	23 Chapter 7. Seller Default
953	953	24 Sec. 1. (a) If:
954	954	25 (1) the buyer has fulfilled the requirements of the principal
955	955	26 dwelling land contract; and
956	956	27 (2) the seller is unable to transfer title to the buyer without
957	957	28 any assumed liens on the property;
958	958	29 the seller shall pay the buyer liquidated damages in the amount of
959	959	30 twenty-five dollars ($25) per day until each unassumed lien is
960	960	31 satisfied. If a buyer brings an action under this section and
961	961	32 prevails, the court may award the buyer court costs and reasonable
962	962	33 attorney's fees.
963	963	34 (b) This section does not affect the seller's obligation to satisfy
964	964	35 any unassumed lien.
965	965	36 (c) A buyer who has fulfilled the requirements of the principal
966	966	37 dwelling land contract is entitled to possession of the real property
967	967	38 with no further payments due to the seller.
968	968	39 Chapter 8. Rulemaking
969	969	40 Sec. 1. The attorney general, in consultation with the
970	970	41 department of financial institutions, may adopt rules under
971	971	42 IC 4-22-2 to implement this article.
972	972	2025 IN 1084—LS 6113/DI 151 23
973	973	1 SECTION 4. An emergency is declared for this act.
974	974	2025 IN 1084—LS 6113/DI 151