§ 36-7-9-20.5 — Property determined unsafe and abandoned; receiver; sale proceeds; fee simple estate subject to easements, liens, and encumbrances

Indiana § 36-7-9-20.5

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 7: PLANNING AND DEVELOPMENT
• Ch. 9: Unsafe Building Law

Text

5. (a) This section applies only to property
determined to be:
(1) an unsafe premises under this chapter; and
(2) abandoned under IC 36-7-37.
(b) The circuit court of the county in which the unit is located shall
appoint the hearing authority.
(c) A city, town, or county having an enforcement authority may
adopt or amend an ordinance to set requirements for the receiver that
are more stringent than is provided in this section.
(d) Upon the request of the enforcement authority or the
enforcement authority's designee, a circuit court acting under section
17 of this chapter may appoint a receiver to take possession of,
rehabilitate, and transfer the property. The receiver may be any
competent person who has been approved by the enforcement
authority.
(e) If the enforcement authority or the enforcement authority's
designee requests the appointment of a receiver, all persons having a
substantial interest in the property shall be made party defendants and
given notice.
(f) A receiver shall provide written notice to the county auditor and
the county treasurer that a receiver has been appointed.
(g) The county treasurer may file a proof of claim with the receiver
that identifies the taxes that are owed at the time the receiver took
possession of the property. The proof of claim must include a detailed
breakdown of all taxes, special assessments, fees, fines from the
enforcement authority, and penalties that are owed on the property.
(h) The county treasurer may request that the county auditor waive
penalties that incurred after the proof of claim is filed. The county
auditor may waive such penalties.
(i) A receiver appointed to transfer property may do the following:
(1) Enter into contracts and do all things necessary to maintain,
rehabilitate, and prepare the property for sale, including
demolition of structures or parts of structures that may not
reasonably be rehabilitated.
(2) Enter into any contracts and do all things necessary to
accomplish the transfer of the property.
(3) Investigate claims on the proceeds of sale submitted under
subsection (k).
The enforcement authority may utilize funds from the unsafe building
fund for expenses incurred by the receiver in carrying out the receiver’s
responsibilities.
(j) A transfer under this section shall be conducted as follows:
(1) The property shall be offered at a public auction, unless the
property is claimed at any time by a recorded owner of the
property.
(2) A bidder must be in good standing as determined by the
enforcement authority or by the receiver acting as the
enforcement authority's designee. The receiver may establish
minimum qualifications for bidders, investigate a bidder's
qualifications and ability to rehabilitate the property, and
prequalify bidders before holding an auction. A person prohibited
from bidding at an auction held under IC 6-1.1-24-6.1 may not bid
at a receiver's auction held under this section.
(3) The receiver may establish a minimum bid for the auction.
(4) Notice of the auction must be given by publication and such
other means as determined by the receiver at least thirty (30) days
before the auction.
(5) The receiver may cancel the auction at any time and for any
reason. The auction may be rescheduled as determined by the
receiver.
(6) The receiver may impose any reasonable conditions upon the
sale.
(k) After the transfer of title to the purchaser, the receiver shall
serve a notice on all persons who, before the transfer, had a known or
recorded substantial property interest in the property. The notice must
contain the following information:
(1) The fact of the transfer and the purchase price paid.
(2) The order in which the proceeds of the sale are to be applied
as described in subsection (l).
(3) Instructions for submitting a claim.
(4) The date by which a claim must be submitted, which may not
be less than ninety (90) days after the date the notice is served.
(5) If the receiver takes reasonable steps but is unable to locate a
person entitled to notice under this subsection, the receiver may
serve the notice by publication. Any proceeds from the sale
remaining after all claims have been paid shall be deposited in the
unsafe building fund or a fund designated by the local ordinance.
(l) The proceeds of the sale shall be applied in the following order:
(1) Current year taxes of not to exceed two thousand five hundred
dollars ($2,500).
(2) The receiver’s expenses, including administrative expenses,
and costs of sale.
(3) Any additional current year taxes in addition to the limit set in
subdivision (1), delinquent taxes, and penalties, unpaid fees and
fines issued by the enforcement authority, and special assessment
accrued on the property.
(4) Any liens on the property in their order of priority.
(5) Any remaining money shall be paid to the divested owner.
(m) The issuing authority of the special assessments may choose to
waive the special assessments and not collect them.
(n) A 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 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 after the sale.
However, subject to subsection (o), the estate is subject to the
following:
(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.
(3) Liens and encumbrances created or suffered by the grantee.
(o) A deed executed under this section:
(1) does not operate to extinguish an easement recorded before
the date of the sale in the office of the recorder of the county in
which the real property is located, regardless of whether the
easement was taxed separately from the real estate; and
(2) conveys title subject to all easements recorded before the date
of the sale in the office of the recorder of the county in which the
real property is located.

Legislative History

As added by P.L.247-2015, SEC.48.