Citations Affected: IC 6-1.1-25; IC 34-30-26; IC 2-5.5-5.
Synopsis: Abandoned housing. Reduces the tax sale redemption
period for vacant and abandoned residential property to six months,
and reduces the redemption period for vacant and abandoned
nonresidential property to one month. Provides immunity from civil
liability to a person who gratuitously: (1) secures; (2) removes trash or
debris from; or (3) mows, landscapes, or maintains; vacant or
abandoned property. Establishes the interim study committee on
mortgage foreclosure issues to study issues relating to: (1) reducing
delays in mortgage foreclosures; and (2) mortgage foreclosures of
vacant or abandoned property.
Effective: July 1, 2011.
January 18, 2011, read first time and referred to Committee on Corrections, Criminal, and
Civil Matters.
A BILL FOR AN ACT to amend the Indiana Code concerning
property.
required under subsections (b), (c), and (d), the total amount required
for redemption includes the following costs, if certified before
redemption and not earlier than thirty (30) days after the date of sale of
the property being redeemed by the payor (or, in the case of
nonresidential property that is a vacant structure (as defined in
IC 36-7-36-6) or an abandoned structure (as defined in
IC 36-7-36-1), not earlier than fifteen (15) days after the date of
sale of the property being redeemed by the payor) to the county
auditor on a form prescribed by the state board of accounts, that were
incurred and paid by the purchaser, the purchaser's assignee, or the
county, before redemption:
(1) The attorney's fees and costs of giving notice under section 4.5
of this chapter.
(2) The costs of a title search or of examining and updating the
abstract of title for the tract or item of real property.
(f) With respect to a tract or item of real property redeemed under
section 4(c) 4(d) of this chapter, instead of the amounts stated in
subsections (b) through (e), the total amount required for redemption
is the amount determined under IC 6-1.1-24-6.1(b)(4).
or
(B) a vacant structure (as defined in IC 36-7-36-6).
(b) (c) Subject to IC 6-1.1-24-9(d), the period for redemption of real
property:
(1) on which the county executive acquires a lien under
IC 6-1.1-24-6; and
(2) for which the certificate of sale is not sold under
IC 6-1.1-24-6.1;
is one hundred twenty (120) days after the date the county executive
acquires the lien under IC 6-1.1-24-6.
(c) (d) The period for redemption of real property:
(1) on which the county executive acquires a lien under
IC 6-1.1-24-6; and
(2) for which the certificate of sale is sold under IC 6-1.1-24;
is one hundred twenty (120) days after the date of sale of the certificate
of sale under IC 6-1.1-24.
(d) (e) When a deed for real property is executed under this chapter,
the county auditor shall cancel the certificate of sale and file the
canceled certificate in the office of the county auditor. If real property
that appears on the list prepared under IC 6-1.1-24-1.5 is offered for
sale and an amount that is at least equal to the minimum sale price
required under IC 6-1.1-24-5(e) is not received, the county auditor shall
issue a deed to the real property, subject to this chapter.
(e) (f) When a deed is issued to a county executive under this
chapter, the taxes and special assessments for which the real property
was offered for sale, and all subsequent taxes, special assessments,
interest, penalties, and cost of sale shall be removed from the tax
duplicate in the same manner that taxes are removed by certificate of
error.
(f) (g) A tax deed executed under this chapter vests in the grantee
an estate in fee simple absolute, free and clear of all liens and
encumbrances created or suffered before or after the tax sale except
those liens granted priority under federal law and the lien of the state
or a political subdivision for taxes and special assessments which
accrue subsequent to the sale and which are not removed under
subsection (e). (f). However, subject to subsection (g), (h), the estate
is subject to:
(1) all easements, covenants, declarations, and other deed
restrictions shown by public records;
(2) laws, ordinances, and regulations concerning governmental
police powers, including zoning, building, land use,
improvements on the land, land division, and environmental
protection; and
(3) liens and encumbrances created or suffered by the grantee.
(g) (h) A tax deed executed under this chapter for real property sold
in a tax sale:
(1) does not operate to extinguish an easement recorded before
the date of the tax sale in the office of the recorder of the county
in which the real property is located, regardless of whether the
easement was taxed under this article separately from the real
property; and
(2) conveys title subject to all easements recorded before the date
of the tax sale in the office of the recorder of the county in which
the real property is located.
(g) (h) (i) A tax deed executed under this chapter is prima facie
evidence of:
(1) the regularity of the sale of the real property described in the
deed;
(2) the regularity of all proper proceedings; and
(3) valid title in fee simple in the grantee of the deed.
(h) (i) (j) A county auditor is not required to execute a deed to the
county executive under this chapter if the county executive determines
that the property involved contains hazardous waste or another
environmental hazard for which the cost of abatement or alleviation
will exceed the fair market value of the property. The county executive
may enter the property to conduct environmental investigations.
(i) (j) (k) If the county executive makes the determination under
subsection (h) (i) (j) as to any interest in an oil or gas lease or separate
mineral rights, the county treasurer shall certify all delinquent taxes,
interest, penalties, and costs assessed under IC 6-1.1-24 to the clerk,
following the procedures in IC 6-1.1-23-9. After the date of the county
treasurer's certification, the certified amount is subject to collection as
delinquent personal property taxes under IC 6-1.1-23. Notwithstanding
IC 6-1.1-4-12.4 and IC 6-1.1-4-12.6, the assessed value of such an
interest shall be zero (0) until production commences.
(j) (k) (l) When a deed is issued to a purchaser of a certificate of sale
sold under IC 6-1.1-24-6.1, the county auditor shall, in the same
manner that taxes are removed by certificate of error, remove from the
tax duplicate the taxes, special assessments, interest, penalties, and
costs remaining due as the difference between the amount of the last
minimum bid under IC 6-1.1-24-5(e) and the amount paid for the
certificate of sale.
JULY 1, 2011]: Sec. 4.5. (a) This subsection applies only to real
property that is not an abandoned structure (as defined in
IC 36-7-36-1) or a vacant structure (as defined in IC 36-7-36-6).
Except as provided in subsection (d), a purchaser or the purchaser's
assignee is entitled to a tax deed to the property that was sold only if:
(1) the redemption period specified in section 4(a)(1) 4(b)(1) of
this chapter has expired;
(2) the property has not been redeemed within the period of
redemption specified in section 4(a) 4(b) of this chapter; and
(3) not later than nine (9) months after the date of the sale:
(A) the purchaser or the purchaser's assignee; or
(B) in a county where the county auditor and county treasurer
have an agreement under section 4.7 of this chapter, the
county auditor;
gives notice of the sale to the owner of record at the time of the
sale and any person with a substantial property interest of public
record in the tract or real property.
(b) This subsection applies only to residential real property that
is an abandoned structure (as defined in IC 36-7-36-1) or a vacant
structure (as defined in IC 36-7-36-6). Except as provided in
subsection (d), a purchaser or the purchaser's assignee is entitled
to a tax deed to the property that was sold only if:
(1) the redemption period specified in section 4(b)(4) of this
chapter has expired;
(2) the property has not been redeemed within the period of
redemption specified in section 4(b)(4) of this chapter; and
(3) not later than ninety (90) days after the date of the sale:
(A) the purchaser or the purchaser's assignee; or
(B) in a county where the county auditor and county
treasurer have an agreement under section 4.7 of this
chapter, the county auditor;
gives notice of the sale to the owner of record at the time of
the sale and any person with a substantial property interest of
public record in the tract or real property.
(c) This subsection applies only to commercial property that is
an abandoned structure (as defined in IC 36-7-36-1) or a vacant
structure (as defined in IC 36-7-36-6). Except as provided in
subsection (d), a purchaser or the purchaser's assignee is entitled
to a tax deed to the property that was sold only if:
(1) the redemption period specified in section 4(b)(5) of this
chapter has expired;
(2) the property has not been redeemed within the period of
redemption specified in section 4(b)(5) of this chapter; and
(3) not later than seven (7) days after the date of the sale:
(A) the purchaser or the purchaser's assignee; or
(B) in a county where the county auditor and county
treasurer have an agreement under section 4.7 of this
chapter, the county auditor;
gives notice of the sale to the owner of record at the time of
the sale and any person with a substantial property interest of
public record in the tract or real property.
(b) (d) A county executive is entitled to a tax deed to property on
which the county executive acquires a lien under IC 6-1.1-24-6 and for
which the certificate of sale is not sold under IC 6-1.1-24-6.1 only if:
(1) the redemption period specified in section 4(b) 4(c) of this
chapter has expired;
(2) the property has not been redeemed within the period of
redemption specified in section 4(b) 4(c) of this chapter; and
(3) not later than ninety (90) days after the date the county
executive acquires the lien under IC 6-1.1-24-6, the county
auditor gives notice of the sale to:
(A) the owner of record at the time the lien was acquired; and
(B) any person with a substantial property interest of public
record in the tract or real property.
(c) (e) A purchaser of a certificate of sale under IC 6-1.1-24-6.1 is
entitled to a tax deed to the property for which the certificate was sold
only if:
(1) the redemption period specified in section 4(c) 4(d) of this
chapter has expired;
(2) the property has not been redeemed within the period of
redemption specified in section 4(c) 4(d) of this chapter; and
(3) not later than ninety (90) days after the date of sale of the
certificate of sale under IC 6-1.1-24, the purchaser gives notice of
the sale to:
(A) the owner of record at the time of the sale; and
(B) any person with a substantial property interest of public
record in the tract or real property.
(d) (f) The person required to give the notice under subsection (a),
(b), (c), (d), or (c) (e) shall give the notice by sending a copy of the
notice by certified mail to:
(1) the owner of record at the time of the:
(A) sale of the property;
(B) acquisition of the lien on the property under IC 6-1.1-24-6;
or
specified in section 4 of this chapter.
(11) A statement that an entity identified in subdivision (5) is
entitled to reimbursement for costs described in section 2(e) of
this chapter.
(12) The date of expiration of the period of redemption specified
in section 4 of this chapter.
(13) A statement that if the property is not redeemed, the owner
of record at the time the tax deed is issued may have a right to the
tax sale surplus, if any.
(14) The street address, if any, or a common description of the
tract or real property.
(15) The key number or parcel number of the tract or real
property.
(f) (h) The notice under this section must include not more than one
(1) tract or item of real property listed and sold in one (1) description.
However, when more than one (1) tract or item of real property is
owned by one (1) person, all of the tracts or real property that are
owned by that person may be included in one (1) notice.
(g) (i) A single notice under this section may be used to notify joint
owners of record at the last address of the joint owners for the property
sold, as indicated in the records of the county auditor.
(h) (j) The notice required by this section is considered sufficient if
the notice is mailed to the address required under subsection (d) (f).
(i) (k) The notice under this section and the notice under section 4.6
of this chapter are not required for persons in possession not shown in
the public records.
(j) (l) If the purchaser fails to:
(1) comply with subsection (c)(3); (e)(3); or
(2) petition for the issuance of a tax deed within the time
permitted under section 4.6(a) of this chapter;
the certificate of sale reverts to the county executive and may be
retained by the county executive or sold under IC 6-1.1-24-6.1.
auditor shall, upon the request of the purchaser or the purchaser's
assignee;
file a verified petition in the same court and under the same cause
number in which the judgment of sale was entered asking the court to
direct the county auditor to issue a tax deed if the real property is not
redeemed from the sale. Notice of the filing of this petition shall be
given to the same parties and in the same manner as provided in section
4.5 of this chapter, except that, if notice is given by publication, only
one (1) publication is required. The notice required by this section is
considered sufficient if the notice is sent to the address required by
section 4.5(d) 4.5(f) of this chapter. Any person owning or having an
interest in the tract or real property may file a written objection to the
petition with the court not later than thirty (30) days after the date the
petition was filed. If a written objection is timely filed, the court shall
conduct a hearing on the objection.
(b) Not later than sixty-one (61) days after the petition is filed under
subsection (a), the court shall enter an order directing the county
auditor (on the production of the certificate of sale and a copy of the
order) to issue to the petitioner a tax deed if the court finds that the
following conditions exist:
(1) The time of redemption has expired.
(2) The tract or real property has not been redeemed from the sale
before the expiration of the period of redemption specified in
section 4 of this chapter.
(3) Except with respect to a petition for the issuance of a tax deed
under a sale of the certificate of sale on the property under
IC 6-1.1-24-6.1, all taxes and special assessments, penalties, and
costs have been paid.
(4) The notices required by this section and section 4.5 of this
chapter have been given.
(5) The petitioner has complied with all the provisions of law
entitling the petitioner to a deed.
The county auditor shall execute deeds issued under this subsection in
the name of the state under the county auditor's name. If a certificate of
sale is lost before the execution of a deed, the county auditor shall issue
a replacement certificate if the county auditor is satisfied that the
original certificate existed.
(c) Upon application by the grantee of a valid tax deed in the same
court and under the same cause number in which the judgment of sale
was entered, the court shall enter an order to place the grantee of a
valid tax deed in possession of the real estate. The court may enter any
orders and grant any relief that is necessary or desirable to place or
maintain the grantee of a valid tax deed in possession of the real estate.
(d) Except as provided in subsections (e) and (f), if:
(1) the verified petition referred to in subsection (a) is timely
filed; and
(2) the court refuses to enter an order directing the county auditor
to execute and deliver the tax deed because of the failure of the
petitioner under subsection (a) to fulfill the notice requirement of
subsection (a);
the court shall order the return of the amount, if any, by which the
purchase price exceeds the minimum bid on the property under
IC 6-1.1-24-5(e) minus a penalty of twenty-five percent (25%) of that
excess. The petitioner is prohibited from participating in any manner
in the next succeeding tax sale in the county under IC 6-1.1-24. The
county auditor shall deposit penalties paid under this subsection in the
county general fund.
(e) Notwithstanding subsection (d), in all cases in which:
(1) the verified petition referred to in subsection (a) is timely
filed;
(2) the petitioner under subsection (a) has made a bona fide
attempt to comply with the statutory requirements under
subsection (b) for the issuance of the tax deed but has failed to
comply with these requirements;
(3) the court refuses to enter an order directing the county auditor
to execute and deliver the tax deed because of the failure to
comply with these requirements; and
(4) the purchaser, the purchaser's successors or assignees, or the
purchaser of the certificate of sale under IC 6-1.1-24 files a claim
with the county auditor for refund not later than thirty (30) days
after the entry of the order of the court refusing to direct the
county auditor to execute and deliver the tax deed;
the county auditor shall not execute the deed but shall refund the
purchase money minus a penalty of twenty-five percent (25%) of the
purchase money from the county treasury to the purchaser, the
purchaser's successors or assignees, or the purchaser of the certificate
of sale under IC 6-1.1-24. The county auditor shall deposit penalties
paid under this subsection in the county general fund. All the
delinquent taxes and special assessments shall then be reinstated and
recharged to the tax duplicate and collected in the same manner as if
the property had not been offered for sale. The tract or item of real
property, if it is then eligible for sale under IC 6-1.1-24, shall be placed
on the delinquent list as an initial offering under IC 6-1.1-24.
(f) Notwithstanding subsections (d) and (e), the court shall not order
the return of the purchase price or any part of the purchase price if:
(1) the purchaser or the purchaser of the certificate of sale under
IC 6-1.1-24 has failed to provide notice or has provided
insufficient notice as required by section 4.5 of this chapter; and
(2) the sale is otherwise valid.
(g) A tax deed executed under this section vests in the grantee an
estate in fee simple absolute, free and clear of all liens and
encumbrances created or suffered before or after the tax sale except
those liens granted priority under federal law, and the lien of the state
or a political subdivision for taxes and special assessments that accrue
subsequent to the sale. However, the estate is subject to all easements,
covenants, declarations, and other deed restrictions and laws governing
land use, including all zoning restrictions and liens and encumbrances
created or suffered by the purchaser at the tax sale. The deed is prima
facie evidence of:
(1) the regularity of the sale of the real property described in the
deed;
(2) the regularity of all proper proceedings; and
(3) valid title in fee simple in the grantee of the deed.
(h) A tax deed issued under this section is incontestable except by
appeal from the order of the court directing the county auditor to issue
the tax deed filed not later than sixty (60) days after the date of the
court's order.