Note: This version of section amended by P.L.230-2025, SEC.37,
effective 1-1-2025. See also following version of this section amended
by P.L.186-2025, SEC.292, effective 7-1-2025.
Sec. 43.
(a)For purposes of this section:
(1)"benefit" refers to a deduction under section 9 (before its
expiration), 11 (before its expiration), 13, 14, 16 (before its
expiration), 17.4 (before its expiration), 26 (before its expiration),
29 (before its expiration), 33 (before its expiration), 34 (before its
expiration), 37, or 37.5 of this chapter;
(2)"closing agent" means a person that closes a transaction;
(3)"customer" means an individual who obtains a loan in a
transaction; and
(4)"transaction" means a single family residential:
(A)first lien purchase money mortgage transaction; or
Free access — add to your briefcase to read the full text and ask questions with AI
Note: This version of section amended by P.L.230-2025, SEC.37,
effective 1-1-2025. See also following version of this section amended
by P.L.186-2025, SEC.292, effective 7-1-2025.
Sec. 43. (a) For purposes of this section:
(1) "benefit" refers to a deduction under section 9 (before its
expiration), 11 (before its expiration), 13, 14, 16 (before its
expiration), 17.4 (before its expiration), 26 (before its expiration),
29 (before its expiration), 33 (before its expiration), 34 (before its
expiration), 37, or 37.5 of this chapter;
(2) "closing agent" means a person that closes a transaction;
(3) "customer" means an individual who obtains a loan in a
transaction; and
(4) "transaction" means a single family residential:
(A) first lien purchase money mortgage transaction; or
(B) refinancing transaction.
(b) Before closing a transaction after December 31, 2004, a closing
agent must provide to the customer the form referred to in subsection
(c).
(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; and
(B) list the eligibility criteria for each benefit;
(2) on the other side indicate:
(A) each action by and each type of documentation from the
customer required to file for each benefit; and
(B) sufficient instructions and information to permit a party to
terminate a standard deduction under section 37 of this chapter
on any property on which the party or the spouse of the party
will no longer be eligible for the standard deduction under
section 37 of this chapter after the party or the party's spouse
begins to reside at the property that is the subject of the closing,
including an explanation of the tax consequences and
applicable penalties, if a party unlawfully claims a standard
deduction under section 37 of this chapter; 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).
(f) A closing agent to which this section applies shall document the
closing agent's compliance with this section with respect to each
transaction in the form of verification of compliance signed by the
customer.
(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:
(A) the 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).
(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 (g).