Summary of Indiana Association Law (2021 Edition)

A Summary of

Association Law

A Summary of Indiana Association Law

2021 Edition

INDIANA CONDOMINIUM ACT

INDIANA LIENS ON REAL PROPERTY

INDIANA DISPLAY OF POLITICAL SIGNS

INDIANA PROPERTY TAX EXEMPTION

INDIANA HOMEOWNERS ASSOCIATION ACT

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INTRODUCTION

There are a variety of laws pertinent to community association governance, including numerous appellate court decisions which impact associations.

The primary community association laws is the Indiana Condominium Act.

We have also included for your convenience and reference the Indiana Homeowners Association Lien Act, Indiana Political Signage, and the Indiana Tax Exemptions. Of course, this is not a substitute for legal advice since many of the laws on the books are subject to interpretation and, in some instances, differences of opinion. Further, all laws must be reviewed in conjunction with each individual association’s Declaration, By-Laws, and other covenants. Please contact us if you have any questions.

We hope that you find this summary useful.

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TABLE OF CONTENTS

Indiana Condominium Act ………………………………………. Page 6

Indiana Liens on Real Property…………………………………. Page 39

Indiana Display of Political Signs on Property Subject to Restrictive Covenants or Homeowners Association Rules…………………. Page 43

Indiana Tax Exemptions ………………………………...……... Page 46

Indiana Homeowners Association Act………………………….. Page 50

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Indiana Condominium Act

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IC 32-25

ARTICLE 25. CONDOMINIUMS

Ch. 1. Ch. 2. Ch. 3. Ch. 4. Ch. 5. Ch. 6. Ch. 7. Ch. 8.

Application of Law

Definitions

Classification of Property

Ownership Interest in Condominiums

Conveyance Procedures Liens and Encumbrances

Declaration

Administration of Condominiums

Ch. 8.5.

Grievance Resolution Actions and Proceedings

Ch. 9.

IC 32-25-1

Chapter 1. Application of Law

32-25-1-1 32-25-1-2

Application of law Persons subject to law

IC 32-25-1-1 Application of law Sec. 1. This article applies to property if:

(1) the sole owner of the property; or (2) all of the owners of the property; submit the property to this article by executing and recording a declaration under this article. [ Pre-2002 Recodification Citation: 32-1-6-3.] As added by P.L.2-2002, SEC.10. Persons subject to law Sec. 2. (a) The following are subject to this article and to declarations and bylaws of associations of co-owners adopted under this article: (1) Condominium unit owners. IC 32-25-1-2 (2) Tenants of condominium unit owners. (3) Employees of condominium unit owners. (4) Employees of tenants of condominium owners. (5) Any other persons that in any manner use property or any part of property submitted to this article. (b) All agreements, decisions, and determinations lawfully made by an association of co-owners in accordance with the voting percentages established in: (1) this article; (2) the declaration; or (3) the bylaws; are binding on all condominium unit owners. [ Pre-2002 Recodification Citation: 32-1-6-31.] As added by P.L.2-2002, SEC.10. Amended by P.L.2-2005, SEC.83.

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IC 32-25-2

Chapter 2. Definitions

32-25-2-1 32-25-2-2 32-25-2-3 32-25-2-4 32-25-2-5 32-25-2-6 32-25-2-7 32-25-2-8 32-25-2-9 32-25-2-10 32-25-2-11 32-25-2-12 32-25-2-13 32-25-2-14 32-25-2-15 32-25-2-16 32-25-2-17 32-25-2-18 32-25-2-19 32-25-2-20

Applicability of definitions "Association of co-owners"

"Building"

"Common areas and facilities"

"Common expenses" "Common profits"

"Condominium"

"Condominium instruments"

"Condominium unit"

"Contractable condominium"

"Co-owner" "Declarant" "Declaration"

"Expandable condominium"

"Limited common areas and facilities" "Majority" or "majority of co-owners"

"Person"

"Property" "To record"

"Unit number"

IC 32-25-2-1 Applicability of definitions Sec. 1. The definitions in this chapter apply throughout this article. [ 2002 Recodification Citation: New.] As added by P.L.2-2002, SEC.10.

IC 32-25-2-2 "Association of co-owners" Sec. 2. "Association of co-owners" means all the co-owners acting as an entity in accordance with the: (1) articles;

(2) bylaws; and (3) declaration. [ Pre-2002 Recodification Citation: 32-1-6-2(f).] As added by P.L.2-2002, SEC.10.

IC 32-25-2-3 "Building" Sec. 3. "Building" means a structure containing: (1) at least two (2) condominium units; or (2) at least two (2) structures containing at least one (1) condominium unit. [ Pre-2002 Recodification Citation: 32-1-6-2(g).] As added by P.L.2-2002, SEC.10. "Common areas and facilities" Sec. 4. "Common areas and facilities", unless otherwise provided in the declaration or lawful amendments to the declaration, means: (1) the land on which the building is located; (2) the building: (A) foundations; (B) columns; IC 32-25-2-4

(C) girders; (D) beams; (E) supports; (F) main walls;

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(G) roofs; (H) halls; (I) corridors; (J) lobbies; (K) stairs; (L) stairways; (M) fire escapes; (N) entrances; and (O) exits;

(3) the:

(A) basements; (B) yards; (C) gardens;

(D) parking areas; (E) storage spaces; (F) swimming pools; and (G) other recreational facilities; (4) the premises for the lodging of: (A) janitors; or (B) persons in charge of the property; (5) installations of central services, such as: (A) power; (B) light; (C) gas; (D) hot and cold water; (E) heating; (F) refrigeration; (G) air conditioning; and (H) incinerating; (6) the: (A) elevators; (B) tanks;

(C) pumps; (D) motors; (E) fans; (F) compressors; (G) ducts; (H) apparatus; and (I) installations; existing for common use; (7) community and commercial facilities provided for in the declaration; and

(8) all other parts of the property: (A) necessary or convenient to its: (i) existence; (ii) maintenance; and (iii) safety; or (B) normally in common use. [ Pre-2002 Recodification Citation: 32-1-6-2(h).] As added by P.L.2-2002, SEC.10.

IC 32-25-2-5

"Common expenses"

Sec. 5. "Common expenses" means: (1) all sums lawfully assessed against the co-owners by the association of co-owners;

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(2) expenses of:

(A) administration; (B) maintenance; (C) repair; or (D) replacement; of the common areas and facilities; (3) expenses agreed upon as common expenses by the association of co-owners; and (4) expenses declared common expenses by: (A) this article; (B) the declaration; or (C) the bylaws. [ Pre-2002 Recodification Citation: 32-1-6-2(i).] As added by P.L.2-2002, SEC.10. Amended by P.L.2-2005, SEC.84. "Common profits" Sec. 6. "Common profits" means the balance remaining, after the deduction of the common expenses, of all: (1) income; (2) rents; (3) profits; and (4) revenues; from the common areas and facilities. [ Pre-2002 Recodification Citation: 32-1-6-2(j).] As added by P.L.2-2002, SEC.10. IC 32-25-2-6 "Condominium" Sec. 7. "Condominium" means real estate: (1) lawfully subjected to this article by the recordation of condominium instruments; and (2) with respect to which the undivided interests in the common areas and facilities are IC 32-25-2-7

vested in the condominium unit owners. [ Pre-2002 Recodification Citation: 32-1-6-2(a).] As added by P.L.2-2002, SEC.10. Amended by P.L.2-2005, SEC.85.

IC 32-25-2-8

"Condominium instruments"

Sec. 8. "Condominium instruments" means: (1) the: (A) declaration; (B) bylaws; (C) plats; and (D) floor plans; of the condominium; and (2) any exhibits or schedules to the items listed in subdivision (1). [ Pre-2002 Recodification Citation: 32-1-6-2(b).] As added by P.L.2-2002, SEC.10.

IC 32-25-2-9

"Condominium unit"

Sec. 9. "Condominium unit" means: (1) an enclosed space:

(A) that consists of one (1) or more rooms occupying all or part of a floor or floors in a structure of one (1) or more floors or stories, regardless of whether the enclosed space is designed: (i) as a residence;

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(ii) as an office; (iii) for the operation of any industry or business; or (iv) for any other type of independent use; and (B) that has: (i) a direct exit to a public street or highway; or (ii) an exit to a thoroughfare or to a given common space leading to a thoroughfare; and (2) the undivided interest in the common elements appertaining to an enclosed space referred to in subdivision (1). [ Pre-2002 Recodification Citation: 32-1-6-2(c).] As added by P.L.2-2002, SEC.10. "Contractable condominium" Sec. 10. "Contractable condominium" means a condominium fromwhich one (1) or more portions of the condominium real estate may be withdrawn. [ Pre-2002 Recodification Citation: 32-1-6-2(d).] As added by P.L.2-2002, SEC.10. IC 32-25-2-10

IC 32-25-2-11 "Co-owner" Sec. 11. "Co-owner" means a person who owns: (1) a condominium unit in fee simple; and (2) an undivided interest in the common areas and facilities; in the percentage established in the declaration. [ Pre-2002 Recodification Citation: 32-1-6-2(e).] As added by P.L.2-2002, SEC.10.

IC 32-25-2-12 "Declarant" Sec. 12. "Declarant" means any person who: (1) executes or proposes to execute a declaration; or (2) executes an amendment to a declaration to expand an expandable condominium. [ Pre-2002 Recodification Citation: 32-1-6-2(k).] As added by P.L.2-2002, SEC.10. "Declaration" Sec. 13. "Declaration" means the instrument by which the property is submitted to this article. The term refers to a declaration as it may be lawfully amended from time to time. [ Pre-2002 Recodification Citation: 32-1-6-2(l).] As added by P.L.2-2002, SEC.10. IC 32-25-2-13 IC 32-25-2-14 "Expandable condominium" Sec. 14. "Expandable condominium" means a condominium to which real estate may be added. [ Pre-2002 Recodification Citation: 32-1-6-2(m).] As added by P.L.2-2002, SEC.10. "Limited common areas and facilities" Sec. 15. "Limited common areas and facilities" means the common areas and facilities designated in the declaration as reserved for use of: (1) a certain condominium unit; or (2) certain condominium units; to the exclusion of the other condominium units. [ Pre-2002 Recodification Citation: 32-1-6-2(n).] As added by P.L.2-2002, SEC.10. IC 32-25-2-15

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IC 32-25-2-16 "Majority" or "majority of co-owners" Sec. 16. "Majority" or "majority of co-owners" means the co-owners with at least fifty-one percent (51%) of the votes, in accordance with the percentages assigned in the declaration to the condominium units for voting purposes. [ Pre-2002 Recodification Citation: 32-1-6-2(o).] As added by P.L.2-2002, SEC.10.

IC 32-25-2-17

"Person"

Sec. 17. "Person" means: (1) an individual; (2) a firm;

(3) a corporation; (4) a partnership; (5) an association; (6) a trust; (7) any other legal entity; or (8) any combination of the entities listed in subdivisions (1) through (7). [ Pre-2002 Recodification Citation: 32-1-6-2(p).] As added by P.L.2-2002, SEC.10.

IC 32-25-2-18

"Property"

Sec. 18. "Property" means: (1) the land; (2) the building; (3) all improvements and structures on the land or the building; and (4) all:

(A) easements; (B) rights; and (C) appurtenances; pertaining to the land or the building. [ Pre- 2002 Recodification Citation: 32-1-6-2(q).] As added by P.L.2-2002, SEC.10.

IC 32-25-2-19 "To record" Sec. 19. "To record" means to record in accordance with the laws of the state. [ Pre-2002 Recodification Citation: 32-1-6-2(r).] As added by P.L.2-2002, SEC.10.

IC 32-25-2-20 "Unit number" Sec. 20. "Unit number" means the:

(1) number; (2) letter; or (3) combination of numbers and letters; designating the condominium unit in the declaration. [ Pre-2002 Recodification Citation: 32-1-6-2(s).] As added by P.L.2-2002, SEC.10.

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IC 32-25-3

Chapter 3. Classification of Property

32-25-3-1

Classification of property

IC 32-25-3-1 Classification of property Sec. 1. A condominium unit and the unit's undivided interest in the common areas and facilities constitute real property. [ Pre-2002 Recodification Citation: 32-1-6-4.] As added by P.L.2-2002, SEC.10.

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IC 32-25-4

Chapter 4. Ownership Interest in Condominiums

32-25-4-1 32-25-4-2 32-25-4-3 32-25-4-3.5 32-25-4-4

Fee simple title; conveyance and encumbrance of condominiums

Multiple ownership of condominiums

Common areas and facilities; undivided interest; repairs Conveyance or encumbrance of common areas and facilities

Contributions for expenses

IC 32-25-4-1 Fee simple title; conveyance and encumbrance of condominiums Sec. 1. (a) If property is submitted to the condominium, each condominium unit owner is seized of: (1) the fee simple title to; (2) the exclusive ownership of; and (3) the exclusive possession of; the owner's condominium unit and undivided interest in the common areas and facilities. (b) A condominium unit may be: (1) individually conveyed; (2) individually encumbered; and (3) the subject of:

(A) ownership; (B) possession; (C) sale; and (D) all types of juridic acts inter vivos or causa mortis;

as if the condominium unit were sole and entirely independent of the other condominium units in the building of which the condominium unit forms a part. (c) Individual titles and interests with respect to condominium units are recordable. [ Pre-2002 Recodification Citation: 32-1-6-5.] As added by P.L.2-2002, SEC.10. Multiple ownership of condominiums Sec. 2. A condominium unit may be held and owned by two (2) or more persons: (1) as joint tenants; (2) as tenants in common; (3) as tenants by the entirety; or (4) in any other real property tenancy relationship recognized under the lawof the state. [ Pre-2002 Recodification Citation: 32-1-6-6.] As added by P.L.2-2002, SEC.10. IC 32-25-4-2 IC 32-25-4-3 Common areas and facilities; undivided interest; repairs Sec. 3. (a) Each condominium unit owner is entitled to an undivided interest in the common areas and facilities as designated in the declaration. Except as provided in subsection (b), the undivided interest must be expressed as a percentage interest based on: (1) the size of the unit in relation to the size of all units in the condominium; (2) the value of each condominium unit in relation to the value of all condominium units in the condominium; or (3) the assignment of an equal percentage undivided interest to each condominium unit. An undivided interest allocated to each condominium unit in accordance with this subsection must be indicated in a schedule of undivided interests in the declaration. However, if the declaration does not specify the method of allocating the percentage undivided interests, an equal percentage undivided interest applies to each condominium unit. The total undivided interests allocated in accordance with subdivision (1) or (2) must equal one hundred percent (100%).

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(b) With respect to an expandable condominium, the declaration may allocate undivided interests in the common area on the basis of value if: (1) the declaration prohibits the creation of any condominium units not substantially identical to the condominium units depicted on the recorded plans of the declaration; or (2) the declaration: (A) prohibits the creation of any condominium units not described in the initial declaration; and (B) contains a statement on the value to be assigned to each condominium unit created after the date of the declaration. (c) Interests in the common areas may not be allocated to any condominium units to be created within any additional land until the plats and plans and supplemental declaration depicting the condominium units to be created are recorded. Simultaneously with the recording of the plats and plans for the condominium units to be created, the declarant must execute and record an amendment to the initial declaration reallocating undivided interests in the common areas so that the future condominium units depicted on the plats and plans will be allocated undivided interests in the common areas on the same basis as the condominium units depicted in the prior recorded plats and plans. (d) Except as provided in section 3.5 of this chapter and in IC 32-25-8-3, the undivided interest of the owner of the condominium unit in the common areas and facilities, as expressed in the declaration, is permanent and may not be altered without the consent of the co-owners. A consent to alteration must be stated in an amended declaration, and the amended declaration must be recorded. The undivided interest may not be transferred, encumbered, disposed of, or separated from the condominium unit to which it appertains, and any purported transfer, encumbrance, or other disposition is void. The undivided interest is considered to be conveyed or encumbered with the condominium unit to which it appertains even though the undivided interest is not expressly mentioned or described in the conveyance or other instrument. (e) The common areas and facilities shall remain undivided. A condominium unit owner or any other person may bring an action for partition or division of any part of the common areas and facilities if the property has been removed from this chapter as provided in IC 32-25-8-12 and IC 32-25-8-16. Any covenant to the contrary is void. (f) Each condominium unit owner: (1) may use the common areas and facilities in accordance with the purpose for which the common areas and facilities were intended; and (2) may not, in the owner's use of the common areas and facilities, hinder or encroach upon the lawful rights of the other co-owners. (g) The: (1) necessary work of: (A) maintenance; (B) repair; and (C) replacement; of the common areas and facilities; and (2) making of any additions or improvements to the common areas and facilities; may be carried out only as provided in this chapter and in the bylaws. (h) The association of condominium unit owners has the irrevocable right, to be exercised by the manager or board of directors, to have access to each condominium unit from time to time during reasonable hours as is necessary for: (1) the maintenance, repair, or replacement of any of the common areas and facilities: (A) in the condominium unit; or (B) accessible from the condominium unit; or (2) making emergency repairs in the condominium unit necessary to prevent damage to:

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(A) the common areas and facilities; or (B) another condominium unit.

[ Pre-2002 Recodification Citation: 32-1-6-7.] As added by P.L.2-2002, SEC.10. Amended by P.L.1-2003, SEC.84; P.L.181-2007, SEC.1.

IC 32-25-4-3.5 Conveyance or encumbrance of common areas and facilities Sec. 3.5. (a) This section applies only to a condominium located on the shore of a lake located in a township with a population of more than three thousand (3,000) but less than three thousand one hundred (3,100) located in a county having a population of more than forty-seven thousand (47,000) but less than forty-seven thousand five hundred (47,500). (b) Except as otherwise provided in a statement described in: (1) IC 32-25-7-1(a)(10) and included in: (A) the declaration; or (B) an amendment to the declaration, if the amendment is approved by at least ninety-five percent (95%) of co-owners; or (2) IC 32-25-8-2(12) and included in: (A) the bylaws; or (B) an amendment to the bylaws, if the amendment is approved by the percentage of votes set forth in the bylaws under IC 32-25-8-2(11); part or all of the common areas and facilities of a condominium may be conveyed or subjected to a security interest by the association of co-owners if at least ninety-five percent (95%) of the co-owners, including at least ninety-five percent (95%) of the co-owners of condominium units not owned by the declarant, agree to the action. However, if the common areas and facilities proposed to be conveyed or encumbered under this section include any limited common areas and facilities, all the owners of the limited common areas and facilities to be conveyed or encumbered must agree to the conveyance or encumbrance. (c) An agreement to convey or encumber common areas and facilities under this section must be evidenced by an agreement: (1) executed in the same manner as a deed or any other instrument recognized by the state for the conveyance or transfer of interests in title; and (2) signed by: (A) at least ninety-five percent (95%) of the co-owners, as required by this section; or (B) another percentage of the co-owners specified in a statement described in subsection (b)(1) or (b)(2). An agreement under this subsection is effective upon being recorded. (d) Proceeds from the conveyance or encumbrance of common areas and facilities under this section shall be distributed to co-owners as common profits under IC 32-25-8-6. However, if the common areas and facilities conveyed or encumbered under this section include limited common areas and facilities, proceeds from the conveyance or encumbrance of the limited common areas and facilities shall be distributed to the owners of the limited common areas and facilities according to the percentage of the owners' undivided interest in the limited common areas and facilities. (e) A conveyance or encumbrance of common areas and facilities not made in accordance with: (1) this section; or (2) a statement described in subsection (b)(1) or (b)(2); is void. As added by P.L.181-2007, SEC.2. Amended by P.L.119-2012, SEC.161. Contributions for expenses Sec. 4. (a) Except as provided in subsection (d) or (e), the co-owners are bound to contribute pro rata, in the percentages computed under section 3 of this chapter, toward: IC 32-25-4-4

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(1) the expenses of administration and of maintenance and repair of the general common areas and facilities and, in the proper case, of the limited common areas and facilities of the building; and (2) any other expense lawfully agreed upon. (b) A co-owner may not exempt the co-owner from contributing toward the expenses referred to in subsection (a) by:

(1) waiver of the use or enjoyment of the common areas and facilities; or (2) abandonment of the condominium unit belonging to the co-owner.

(c) All sums assessed by the association of co-owners shall be established by using generally accepted accounting principles applied on a consistent basis and shall include the establishment and maintenance of a replacement reserve fund. The replacement reserve fund may be used for capital expenditures and replacement and repair of the common areas and facilities and may not be used for usual and ordinary repair expenses of the common areas and facilities. The fund shall be: (1) maintained in a separate interest bearing account with a bank or savings association authorized to conduct business in the county in which the condominium is established; or (2) invested in the same manner and in the same types of investments in which the funds of a political subdivision may be invested: (A) under IC 5-13-9; or (B) as otherwise provided by law. Assessments collected for contributions to the fund are not subject to adjusted gross income tax. (d) If permitted by the declaration, the declarant or a developer (or a successor in interest of either) that is a co-owner of unoccupied condominium units offered for the first time for sale is excused from contributing toward the expenses referred to in subsection (a) for those units for a period that: (1) is stated in the declaration; (2) begins on the day that the declaration is recorded; and (3) terminates no later than the first day of the twenty-fourth calendar month following the month in which the closing of the sale of the first condominium unit occurs. However, if the expenses referred to in subsection (a) incurred by the declarant, developer, or successor during the period referred to in this subsection exceed the amount assessed against the other co-owners, the declarant, developer, or successor shall pay the amount by which the expenses incurred by the declarant, developer, or successor exceed the expenses assessed against the other co-owners. (e) If the declaration does not contain the provisions referred to in subsection (d), the declarant or a developer (or a successor in interest of either) that is a co-owner of unoccupied condominium units offered for the first time for sale is excused from contributing toward the expenses referred to in subsection (a) for those units for a stated period if the declarant, developer, or successor: (1) has guaranteed to each purchaser in the purchase contract, the declaration, or the prospectus, or by an agreement with a majority of the other co-owners that the assessment for those expenses will not increase over a stated amount during the stated period; and (2) has obligated itself to pay the amount by which those expenses incurred during the stated period exceed the assessments at the guaranteed level under subdivision (1) receivable during the stated period from the other co-owners. [ Pre-2002 Recodification Citation: 32-1-6-22.] As added by P.L.2-2002, SEC.10. Amended by P.L.192-2002(ss), SEC.172.

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IC 32-25-5

Chapter 5. Conveyance Procedures

32-25-5-1 32-25-5-2

First conveyance; satisfaction of liens

Unpaid assessments; grantee and grantor jointly and severally liable

IC 32-25-5-1 First conveyance; satisfaction of liens Sec. 1. (a) At the time of the first conveyance of each condominium unit: (1) every mortgage and other lien affecting the condominium unit, including the unit's percentage of undivided interest in the common areas and facilities, must be paid and satisfied of record; or (2) the condominium unit being conveyed and the unit's percentage of undivided interest in the common areas and facilities must be released from the mortgage or other lien by partial release. (b) A partial release under subsection (a)(2) must be recorded. [ Pre-2002 Recodification Citation: 32-1-6-16.] As added by P.L.2-2002, SEC.10.

IC 32-25-5-2

Unpaid assessments; grantee and grantor jointly and severally liable

Sec. 2. (a) Except as provided in subsection (b) or (d), in a voluntary conveyance, the grantee of a condominium unit is jointly and severally liable with the grantor for all unpaid assessments against the grantor for the grantor's share of the common expenses incurred before the grant or conveyance, without prejudice to the grantee's right to recover from the grantor the amounts of common expenses paid by the grantee. (b) The grantee: (1) is entitled to a statement from the association, manager, or board of directors setting forth the amount of the unpaid assessments against the grantor; and (2) is not liable for, nor shall the condominium unit conveyed be subject to a lien for, any unpaid assessments against the grantor in excess of the amount set forth in the statement. (c) The grantee may obtain the statement of unpaid assessments described in subsection (b) by making a written request to the association, manager, or board of directors at: (1) the last address at which the grantor made a payment of the assessments; or (2) the address for the association, manager, or board of directors as listed in the records of the secretary of state. (d) If the association, manager, or board of directors does not provide, by first class or certified mail, a statement of unpaid assessments not later than ten (10) business days after receipt of the written request, the: (1) grantee is not liable for; and (2) condominium unit conveyed is not subject to a lien for;

any unpaid assessments against the grantor. [ Pre-2002 Recodification Citation: 32-1-6-23.] As added by P.L.2-2002, SEC.10. Amended by P.L.94-2014, SEC.7.

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IC 32-25-6

Chapter 6. Liens and Encumbrances

32-25-6-1 32-25-6-2 32-25-6-3

Liens and encumbrances

Common areas; transferable easements for making improvements

Unpaid assessments; lien

IC 32-25-6-1 Liens and encumbrances Sec. 1. (a) After a declaration is recorded under this article and while the property remains subject to this article, a lien may not arise or be effective against the property as a whole. Except as provided in subsection (b), liens or encumbrances may arise or be created only against: (1) each condominium unit; and (2) the undivided interest in the common areas and facilities appurtenant to each unit; in the same manner and under the same conditions as liens or encumbrances may arise or be created against any other parcel of real property. (b) Labor performed or materials furnished with the consent or at the request of a condominium unit owner, the owner's agent, or the owner's contractor or subcontractor may not be the basis for filing a lien under any lien law against the condominium unit or any other property of any other co-owner not expressly consenting to or requesting the performance of the labor or the furnishing of the materials. However, express consent is considered to be given by the owner of any condominium unit in the case of emergency repairs to the condominium unit. Labor performed or materials furnished for the common areas and facilities, if authorized by the association of co-owners, the manager, or board of directors in accordance with this article, the declaration, or the bylaws: (1) are considered to be performed or furnished with the express consent of each co-owner; (2) constitute the basis for the filing of a lien under any lien law against each of the condominium units; and (3) are subject to subsection (c). (c) If a lien against two (2) or more condominium units becomes effective, the owner of a condominium unit against which the lien is effective may remove the owner's: (1) unit; and (2) undivided interest in the common areas and facilities appurtenant to the unit; from the lien by payment of the fractional or proportional amounts attributable to the unit. After the payment, discharge of the lien, or other satisfaction of the lien, the condominium unit and the undivided interest in the common areas and facilities appurtenant to the condominium unit are free and clear of the lien. A partial payment, partial satisfaction of the lien, or discharge of the lien may not prevent the lienholder from proceeding against any condominium unit and the undivided interest in the common areas and facilities appurtenant to the condominium unit that remain subject to the lien. [ Pre-2002 Recodification Citation: 32-1-6-10.] As added by P.L.2-2002, SEC.10.

IC 32-25-6-2

Common areas; transferable easements for making improvements

Sec. 2. Subject to any restrictions and limitations in the condominium instruments, the declarant has a transferable easement over and upon the common areas and facilities for the purpose of: (1) making improvements within: (A) the condominium; or (B) additional real estate; under those instruments and this article; and (2) doing all things reasonably necessary and proper in connection with the

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improvements referred to in subdivision (1). [ Pre-2002 Recodification Citation: 32-1-6-15.4.] As added by P.L.2-2002, SEC.10.

IC 32-25-6-3 Unpaid assessments; lien Sec. 3. (a) All sums assessed by the association of co-owners but unpaid for the share of the common expenses chargeable to any condominium unit constitute a lien on the unit effective at the time of assessment. The lien has priority over all other liens except: (1) tax liens on the condominium unit in favor of any: (A) assessing unit; or (B) special district; and (2) all sums unpaid on a first mortgage of record. (b) A lien under subsection (a) may be filed and foreclosed by suit by the manager or board of directors, acting on behalf of the association of co-owners, under laws of Indiana governing mechanics' and materialmen's liens. In any foreclosure under this subsection: (1) the condominium unit owner shall pay a reasonable rental for the unit, if payment of the rental is provided in the bylaws; and (2) the plaintiff in the foreclosure is entitled to the appointment of a receiver to collect the rental. (c) The manager or board of directors, acting on behalf of the association of co-owners, may, unless prohibited by the declaration: (1) bid on the condominium unit at foreclosure sale; and (2) acquire, hold, lease, mortgage, and convey the condominium unit. (d) Suit to recover a money judgment for unpaid common expenses is maintainable without foreclosing or having the lien securing the expenses. (e) If the mortgagee of a first mortgage of record or other purchaser of a condominium unit obtains title to the unit as a result of foreclosure of the first mortgage, the acquirer of title, or the acquirer's successors and assigns, is not liable for the share of the common expenses or assessments by the association of co-owners chargeable to the unit that became due before the acquisition of title to the unit by the acquirer. The unpaid share of common expenses or assessments is considered to be common expenses collectible from all of the co-owners, including the acquirer or the acquirer's successors and assigns. [ Pre-2002 Recodification Citation: 32-1-6-24.] As added by P.L.2-2002, SEC.10.

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IC 32-25-7

Chapter 7. Declaration

32-25-7-1 32-25-7-2 32-25-7-3 32-25-7-4 32-25-7-5 32-25-7-6

Recording declaration; contents

Expandable condominiums; contents of declaration Contractable condominiums; contents of declaration

Floor plans

Designation; conveyance

Presumption of consent to changes; reallocation of interests in common area; liens

32-25-7-7

Amending declaration; consents required

IC 32-25-7-1 Recording declaration; contents Sec. 1. (a) The owner of the land on which a condominium is declared shall record with the recorder of the county in which the land is situated a declaration. Except as provided in section 2 or 3 of this chapter, the declaration must include the following: (1) A description of the land on which the building and improvements are or are to be located. (2) A description of the building, stating: (A) the number of stories and basements; and (B) the number of condominium units. (3) A description of the common areas and facilities. (4) A description of the limited common areas and facilities, if any, stating to which condominium units their use is reserved. (5) The percentage of undivided interest in the common areas and facilities appertaining to each condominium unit and its owner for all purposes, including voting. (6) A statement of the percentage of votes by the condominium unit owners required to determine whether to: (A) rebuild; (B) repair; (C) restore; or (D) sell; the property if all or part of the property is damaged or destroyed. (7) Any covenants and restrictions in regard to the use of: (A) the condominium units; and (B) common areas and facilities. (8) Any further details in connection with the property that: (A) the person executing the declaration considers desirable; and (B) are consistent with this article. (9) The method by which the declaration may be amended in a manner consistent with this chapter. (10) This subdivision applies only to a condominium located on the shore of a lake located in a township with a population of more than three thousand (3,000) but less than three thousand one hundred (3,100) located in a county having a population of more than forty-seven thousand (47,000) but less than forty-seven thousand five hundred (47,500). A statement of the percentage of votes by the condominium unit owners required to convey or encumber part or all of the common areas and facilities. A statement under this subdivision may not allow less than ninety-five percent (95%) of the condominium unit owners, or less than ninety-five percent (95%) of the owners of condominium units not owned by the declarant, to convey or encumber part or all of the common areas and facilities. If the declaration does not include a statement under this subdivision, IC 32-25-4-3.5 applies. (b) A true copy of the bylaws shall be annexed to and made a part of the declaration. (c) The record of the declaration shall contain a reference to the: (1) book;

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(2) page; and (3) date of record; of the floor plans of the building affected by the declaration. [ Pre-2002 Recodification Citation: 32-1-6-12.] As added by P.L.2-2002, SEC.10. Amended by P.L.181-2007, SEC.3; P.L.119-2012, SEC.162. Expandable condominiums; contents of declaration Sec. 2. (a) If a condominium is an expandable condominium, the declaration shall contain, in addition to the matters specified in section 1 of this chapter: IC 32-25-7-2 (1) a general plan of development showing: (A) the property subject to the condominium; (B) areas into which expansion may be made; and (C) the maximum number of condominium units in additional phases that may be added; (2) a schedule or formula for determining the percentage of undivided interests in the common areas and facilities that will appertain to each condominium unit as each additional phase is added; and (3) a time limit, not exceeding ten (10) years, within which the phase or phases may be added to the condominium. (b) If additional phases are not developed within five (5) years after the recordation of the declaration, the development of additional phases is not considered to be part of: (1) a common scheme; and (2) development of the entire condominium. [ Pre-2002 Recodification Citation: 32-1-6-12.1.] As added by P.L.2-2002, SEC.10. IC 32-25-7-3 Contractable condominiums; contents of declaration Sec. 3. If a condominium is a contractable condominium, the declaration shall contain, in addition to matters specified in section 1 of this chapter: (1) an explicit reservation of an option to contract the condominium; (2) a statement of any limitations on the option to contract the condominium; (3) a date, not later than ten (10) years after the recording of the declaration, upon which the option to contract the condominiumwill expire; (4) a statement of any circumstances that will terminate the option to contract the condominium before the expiration date referred to in subdivision (3); (5) a legally sufficient description of all withdrawable land; (6) a statement as to whether portions of the withdrawable land may be withdrawn from the condominium at different times; and (7) a statement of any limitations:

(A) fixing the boundaries of portions of the withdrawable land; or (B) regulating the order in which the portions may be withdrawn. [ Pre-2002 Recodification Citation: 32-1-6-12.2.] As added by P.L.2-2002, SEC.10.

IC 32-25-7-4 Floor plans Sec. 4. (a) Simultaneously with the recording of the declaration, a set of floor plans of the condominium or building shall be filed in the office of the county recorder. The set of floor plans must include the following: (1) The relation of the condominium or building to lot lines. (2) The: (A) layout; (B) elevation;

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(C) location; (D) unit numbers; and (E) dimensions; of the condominium units. (3) The name of the condominium or building, or that it has no name.

(4) The verified statement of a registered architect or licensed professional engineer certifying that the set of floor plans is an accurate copy of portions of the plans of the building as filed with and approved by the municipal or other governmental subdivision having jurisdiction over the issuance of permits for the construction of buildings. (b) If the set of floor plans referred to in subsection (a) does not include a verified statement by an architect or engineer that the plans fully and accurately depict the layout, location, unit numbers, and dimensions of the condominium units as built, an amendment to the declaration must be recorded before the first conveyance of any condominium unit. The amendment to the declaration must have attached to it a verified statement of a registered architect or licensed professional engineer certifying that the filed set of floor plans or the set of floor plans being filed simultaneously with the amendment fully and accurately depicts the layout, location, unit numbers, and dimensions of the condominium units as built. The set of floor plans shall: (1) be kept by the recording officer in a separate file for each building; (2) be indexed in the same manner as a conveyance entitled to be recorded; (3) be numbered serially in the order of receipt; (4) be designated "condominiumunit ownership", with the name of the building, if any; and (5) contain a reference to the: (A) book; (B) page; and (C) date of recording; of the amendment to the declaration. (c) The record of the amendment to the declaration referred to in subsection (b) shall contain a reference to the file number of the set of floor plans of the building affected by the amendment to the declaration. [ Pre-2002 Recodification Citation: 32-1-6-13.] As added by P.L.2-2002, SEC.10. Designation; conveyance Sec. 5. (a) Each condominium unit in a building shall be designated, on the set of floor plans referred to in section 4 of this chapter, by letter, number, or other appropriate designation. IC 32-25-7-5 (b) Any instrument recognized by the state for the conveyance or transfer of interests in title, which describes the apartment by using the designation referred to in subsection (a) followed by the words "in (name) Condominium as recorded in Book _, p. , under the date of , _, of the records of County, Indiana", is considered to contain a good and sufficient description for all purposes. (c) Any conveyance or transfer of interest in title of a condominium unit is considered also to convey the undivided interests of the owner in the common areas and facilities, both general and limited, appertaining to the condominium unit without specifically or particularly referring to the undivided interests. The: (1) contents; (2) form; (3) method of preparation;

(4) recording of an instrument of conveyance; and (5) interpretation of an instrument of conveyance; are governed by the law of Indiana relating to real property.

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(d) Each instrument or deed of conveyance also shall include the following: (1) A statement of the use for which the condominium unit is intended. (2) A statement of the restrictions on the use of the condominium unit. (3) The percentage of undivided interest appertaining to the condominium unit in the common areas and facilities. (4) The amount of any unpaid current or delinquent assessments of common expenses. (5) Any other details and restrictions that: (A) the grantor and grantee consider desirable; and (B) are consistent with the declaration. (e) Failure to make a statement in the deed as required by subsection (d)(4) does not: (1) invalidate the title conveyed by the deed; or (2) absolve a grantee under the deed from liability for any unpaid current or delinquent assessments of common expenses against a condominium unit on the date of its conveyance. (f) Upon the request of a: (1) condominium unit owner; (2) prospective grantee; (3) title insurance company; or (4) mortgagee; the secretary or other authorized officer of the association of co-owners shall provide, within five (5) days of the request, a statement of the amount of current and delinquent assessments of common expenses against a particular condominium unit. [ Pre-2002 Recodification Citation: 32-1-6-14.] As added by P.L.2-2002, SEC.10.

IC 32-25-7-6

Presumption of consent to changes; reallocation of interests in common area; liens

Sec. 6. (a) Except as provided in subsection (b), if the declaration for a condominium is in conformity with section 2 of this chapter, it is presumed that any owner of a condominium unit in that condominium has consented to the changes in the percentage of undivided interest in the common areas and facilities appertaining to the owner's unit. (b) An owner of a condominium unit who entered an agreement to purchase that unit before the recordation of the declaration may not be presumed to have consented to the changes referred to in subsection (a) unless the owner: (1) was provided a copy of: (A) the expansion provisions; or (B) the declaration; and (2) made a written acknowledgment of the receipt of the provisions before entering the purchase agreement. (c) The reallocation of percentage of undivided interests in the common areas and facilities vests when the amendment to the declaration incorporating the reallocated percentages is recorded. (d) When the amendment to the declaration incorporating: (1) the addition of condominium units; (2) the expansion of common areas and facilities; or (3) both addition and expansion as described in subdivisions (1) and (2); is recorded, all liens, including mortgage liens, are released as to the percentage of undivided interests in the common areas and facilities described in the declaration (before amendment of the declaration) and shall attach to the reallocated percentage of undivided interests in the common areas and facilities described in the amendment to the declaration as though the liens had attached to those percentage interests on the date of the recordation of the mortgage or other document that evidences the creation of the lien. The percentage interest in the common areas and facilities appertaining to additional condominium units being added by

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the amendment to the declaration are subject to mortgage liens and other liens upon the recordation of the amendment to the declaration. [ Pre-2002 Recodification Citation: 32-1-6-15.2.] As added by P.L.2-2002, SEC.10.

IC 32-25-7-7 Amending declaration; consents required Sec. 7. The declaration must contain a provision allowing the co-owners to amend the

declaration at any time, from time to time, subject to the following: (1) The declarant's consent to an amendment may be required if:

(A) the declarant owns one (1) or more units within the condominium; and (B) not more than seven (7) years have passed since the original declaration was first recorded. (2) The consent of the co-owners to the amendment has been obtained as evidenced by either of the following: (A) The vote of the co-owners at a meeting called for the purpose of considering the amendment. (B) A written instrument signed by the co-owners. The declaration may not require that the consent of more than seventy-five percent (75%) of the co-owners is required for consent under this subdivision. (3) If the consent of first mortgage holders is required, only first mortgage holders that provide an address to the secretary of the board must be notified. The consent of a first mortgage holder must be indicated in a written instrument signed by the mortgage holder. However, a mortgage holder is considered to have consented to a proposed amendment if the mortgage holder does not respond to a written request for consent within thirty (30) days after the mortgage holder receives the request. The governing documents may not require that the consent of more than seventy-five percent (75%) of first mortgage holders eligible to receive notice is required for consent under this subdivision. (4) Notwithstanding subdivisions (1) through (3), the declaration may require the approval of at least ninety-five percent (95%) of the co-owners to convey common areas or to dissolve the condominium. As added by P.L.141-2015, SEC.2. Amended by P.L.164-2016, SEC.1.

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IC 32-25-8

Chapter 8. Administration of Condominiums

32-25-8-1 32-25-8-2 32-25-8-2.5 32-25-8-3 32-25-8-4 32-25-8-5 32-25-8-6 32-25-8-6.5 32-25-8-7 32-25-8-8 32-25-8-9 32-25-8-10 32-25-8-11 32-25-8-12 32-25-8-13 32-25-8-14 32-25-8-15 32-25-8-16

Bylaws; administration of property

Bylaws; contents

Board of directors meetings; co-owners entitled to attend; permissible private meetings; availability of meeting minutes

Recording instruments; indexes

Sales and management offices; model units

Alteration or structural changes; impairing easements or hereditaments

Common profits and expenses

Condominium association distributing water or sewer service; not considered public utility

Taxes, assessments, and charges

Records

Insurance; co-owners

Insurance; reconstruction of building

Insurance; reconstruction of building; insufficient proceeds Determination not to rebuild after casualty or disaster Expandable condominiums; addition of real estate Contractable condominiums; withdrawal of land

Reservation of option not to expand; disclosure

Removal of property

IC 32-25-8-1 Bylaws; administration of property Sec. 1. The administration of every property is governed by bylaws. A true copy of the bylaws shall be annexed to and made a part of the declaration. A modification of or amendment to the bylaws is valid only if: (1) the modification or amendment is set forth in an amendment to the declaration; and (2) the amendment is recorded. [ Pre-2002 Recodification Citation: 32-1-6-25.] As added by P.L.2-2002, SEC.10.

IC 32-25-8-2

Bylaws; contents Sec. 2. The bylaws must provide for the following: (1) With respect to the board of directors: (A) the election of the board from among the co-owners; (B) the number of persons constituting the board;

(C) the expiration of the terms of at least one-third (1/3) of the directors annually; (D) the powers and duties of the board, including whether the board may engage the services of a manager or managing agent; (E) the compensation, if any, of the directors; and (F) the method of removal from office of directors. (2) The method of calling meetings of the co-owners and the percentage, if other than a majority of co-owners, that constitutes a quorum. (3) The election from among the board of directors of a president, who shall preside over the meetings of: (A) the board of directors; and (B) the association of co-owners. (4) The election of a secretary, who shall keep the minute book in which resolutions shall be recorded. (5) The election of a treasurer, who shall keep the financial records and books of account. (6) The maintenance, repair, and replacement of the common areas and facilities and payments for that maintenance, repair, and replacement, including the method of approving payment vouchers.

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