summary
Introduced
01/08/2025
01/08/2025
In Committee
01/08/2025
01/08/2025
Crossed Over
Passed
Dead
04/24/2025
04/24/2025
Introduced Session
2025 Regular Session
Bill Summary
Real estate land contracts. Defines "principal dwelling land contract" (contract) as a land contract for the sale of real property: (1) designed for the occupancy of one to two families; and (2) that is or will be occupied by the buyer as the buyer's principal dwelling. Provides that a buyer who has completed the buyer's obligations under the contract is entitled to the homestead deduction regardless of whether the seller has conveyed title. Provides that the seller under a contract must provide the buyer with certain information concerning any liens that encumber the property 10 days before the contract is executed. Sets forth disclosures that must be included in a contract. Requires all preexisting liens on the property to be satisfied by the seller by the end of the contract term. Provides that a contract must permit a buyer to pay the balance owed and receive the deed at any time. Prohibits prepayment penalties or additional charges for an early payoff. Provides a three day cancellation period for both the buyer and seller. Allows the seller and the buyer to transfer their respective interests in the contract to other parties, subject to certain conditions. Requires the seller to provide the buyer with an annual statement of account. Sets forth certain rights and responsibilities of the parties upon default by either the buyer or the seller. Sets forth acts and omissions constituting violations and establishes remedies for these violations. Provides that a violation of these provisions constitutes an incurable deceptive act that is actionable by the attorney general under the deceptive consumer sales act. Authorizes the attorney general, in consultation with the department of financial institutions, to adopt rules to implement these provisions. Requires that the executed contract or a memorandum of land contract be notarized.
AI Summary
This bill establishes comprehensive regulations for principal dwelling land contracts in Indiana, providing extensive protections for buyers purchasing residential property through a land contract. The bill defines a "principal dwelling land contract" as a contract for selling residential real property designed for one to two families that will serve as the buyer's primary residence. Key provisions include requiring sellers to provide a complete record of property liens at least 10 days before contract execution, mandating detailed contract disclosures about sale price, payment terms, taxes, and insurance responsibilities, and prohibiting prepayment penalties. The bill establishes a three-day cancellation period for both buyers and sellers, requires all preexisting liens to be satisfied by the end of the contract term, and allows buyers to pay off the contract and receive the deed at any time. Additionally, the bill provides specific protections for buyers in case of default, including a 60-day cure period for missed payments and limits on forfeiture of the property. Sellers who violate the provisions may face liquidated damages, and the attorney general is authorized to take action against deceptive practices. The legislation applies to land contracts entered into after June 30, 2025, and excludes transactions involving depository institutions, mortgage lenders, and transactions between family members.
Committee Categories
Justice
Sponsors (2)
Last Action
Representative Pierce K added as coauthor (on 01/27/2025)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://iga.in.gov/legislative/2025/bills/house/1084/details |
| BillText | https://iga.in.gov/pdf-documents/124/2025/house/bills/HB1084/HB1084.01.INTR.pdf |
| Fiscal Note #1: Introduced | https://iga.in.gov/pdf-documents/124/2025/house/bills/HB1084/fiscal-notes/HB1084.01.INTR.FN001.pdf |
Loading...