Citations Affected: IC 6-1.1.
Synopsis: Residential real estate closing forms. Resolves the conflict
affecting IC 6-1.1-12-43 (concerning the duty of a closing agent to
provide the customer a certain form and to input certain information in
connection with a single family residential mortgage transaction) that
arose when IC 6-1.1-12-43 was amended in different ways by
P.L.146-2008 and P.L.145-2008. (The introduced version of this bill
was prepared by the code revision commission.)
Effective: Upon passage.
January 12, 2009, read first time and referred to Committee on Government and Regulatory
February 17, 2009, reported _ Do Pass.
A BILL FOR AN ACT to amend the Indiana Code concerning
(c) Before June 1, 2004, the department of local government finance shall prescribe the form to be provided by closing agents to customers under subsection (b). The department shall make the form available to closing agents, county assessors, county auditors, and county treasurers in hard copy and electronic form. County assessors, county auditors, and county treasurers shall make the form available to the general public. The form must:
(1) on one (1) side:
(A) list each benefit;
(B) list the eligibility criteria for each benefit; and
(C) indicate that a new application for a deduction under section 1 of this chapter is required when residential real property is refinanced;
(2) on the other side indicate:
(A) each action by; and
(B) each type of documentation from;
the customer required to file for each benefit; and
(3) be printed in one (1) of two (2) or more colors prescribed by the department of local government finance that distinguish the form from other documents typically used in a closing referred to in subsection (b).
(d) A closing agent:
(1) may reproduce the form referred to in subsection (c);
(2) in reproducing the form, must use a print color prescribed by the department of local government finance; and
(3) is not responsible for the content of the form referred to in subsection (c) and shall be held harmless by the department of local government finance from any liability for the content of the form.
(e) This subsection applies to a transaction that is closed after December 31, 2009. In addition to providing the customer the form described in subsection (c) before closing the transaction, a closing agent shall do the following as soon as possible after the closing, and within the time prescribed by the department of insurance under IC 27-7-3-15.5:
(1) To the extent determinable, input the information described in IC 27-7-3-15.5(c)(2) into the system maintained by the department of insurance under IC 27-7-3-15.5.
(2) Submit the form described in IC 27-7-3-15.5(c) to the data base described in IC 27-7-3-15.5(c)(2)(D).
(e) (f) A closing agent to which this section applies shall document
its the closing agent's compliance with this section with respect to each
transaction in the form of verification of compliance signed by the
(f) (g) Subject to IC 27-7-3-15.5(d), a closing agent is subject to a
civil penalty of twenty-five dollars ($25) for each instance in which the
closing agent fails to comply with this section with respect to a
customer. The penalty:
(1) may be enforced by the state agency that has administrative jurisdiction over the closing agent in the same manner that the agency enforces the payment of fees or other penalties payable to the agency; and
(2) shall be paid into:
property tax replacement state general fund, if the
closing agent fails to comply with subsection (b); or
(B) the home ownership education account established by IC 5-20-1-27, if the closing agent fails to comply with subsection (e) in a transaction that is closed after December 31, 2009.
(h) A closing agent is not liable for any other damages claimed by a customer because of:
(1) the closing agent's mere failure to provide the appropriate document to the customer under subsection (b); or
(2) with respect to a transaction that is closed after December 31, 2009, the closing agent's failure to input the information or submit the form described in subsection (e).
(g) (i) The state agency that has administrative jurisdiction over a
closing agent shall:
(1) examine the closing agent to determine compliance with this section; and
(2) impose and collect penalties under subsection