§ 26-1-2-107 — Goods to be severed from realty; recording

Indiana § 26-1-2-107

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 2: Sales

Text

(1) A contract for the sale of minerals or
the like (including oil and gas) or a structure or its materials to be
removed from realty is a contract for the sale of goods within IC 26-1-2
if they are to be severed by the seller but until severance a purported
present sale thereof which is not effective as a transfer of an interest in
land is effective only as a contract to sell.
(2) A contract for the sale apart from the land of growing crops or
other things attached to realty and capable of severance without
material harm thereto but not described in subsection (1) or of timber
to be cut is a contract for the sale of goods within IC 26-1-2 whether
the subject matter is to be severed by the buyer or by the seller even
though it forms part of the realty at the time of contracting, and the
parties can by identification effect a present sale before severance.
(3) The provisions of this section are subject to any third party rights
provided by the law relating to realty records, and the contract for sale
may be executed and recorded as a document transferring an interest
in land and shall then constitute notice to third parties of the buyer's
rights under the contract for sale.
Formerly: Acts 1963, c.317, s.2-107. As amended by
P.L.93-1985, SEC.4.