Reprinted

April 10, 2009





ENGROSSED

SENATE BILL No. 225

_____


DIGEST OF SB 225 (Updated April 9, 2009 6:29 pm - DI 44)



Citations Affected: IC 32-31.

Synopsis: Foreclosure and tenants. With certain exceptions, requires the former owner of real property that: (1) is the subject of a judgment of foreclosure; and (2) contains up to four rental units; to notify (by registered or certified mail) each tenant of the judgment of foreclosure and of the tenant's rights. Permits a tenant of such property to terminate a rental agreement upon written notice delivered to the former landlord. Provides that a tenant who terminates a rental agreement is liable for all rent and other charges due under the rental agreement to the effective date of termination, in an amount that is prorated to the effective date of termination, and is not liable for any other rent or charges solely because of the early termination of the rental agreement, but may be liable for other charges for damage to the rental premises. Authorizes a tenant to bring a civil action against a former owner or former landlord in certain circumstances.

Effective: July 1, 2009.





Lubbers , Lawson C, Broden, Randolph, Breaux, Merritt
(HOUSE SPONSORS _ DAY, FOLEY)




    January 7, 2009, read first time and referred to Committee on Judiciary.
    January 22, 2009, amended, reported favorably _ Do Pass.
    January 26, 2009, read second time, ordered engrossed. Engrossed.
    January 27, 2009, read third time, passed. Yeas 48, nays 2.

HOUSE ACTION

    February 25, 2009, read first time and referred to Committee on Judiciary.
    April 2, 2009, amended, reported _ Do Pass.
    April 9, 2009, read second time, amended, ordered engrossed.





Reprinted

April 10, 2009

First Regular Session 116th General Assembly (2009)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2008 Regular Session of the General Assembly.


ENGROSSED

SENATE BILL No. 225



    A BILL FOR AN ACT to amend the Indiana Code concerning property.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 32-31-8-7; (09)ES0225.2.1. -->     SECTION 1. IC 32-31-8-7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 7. (a) This section applies to rental agreements entered into, extended, or renewed after June 30, 2009.
    (b) This section applies to real property containing one (1), two (2), three (3), or four (4) rental units that is the subject of a judgment of foreclosure under IC 32-30-10-5. However, this section does not apply if:
        (1) a receiver is appointed in the foreclosure action under IC 32-30-5; or
        (2) the plaintiff asking foreclosure states in its complaint that the foreclosure will not affect the rights of a tenant not in default of the tenant's lease.
    (c) As used in this section, "former landlord" means the landlord at the time the judgment of foreclosure was entered.
    (d) As used in this section, "former owner" means the owner at the time the judgment of foreclosure was entered.
    (e) Not later than ten (10) days after the judgment of foreclosure on real property described in subsection (b) is entered, the former owner of the real property shall provide each tenant with written notice of:
        (1) the judgment of foreclosure; and
        (2) the tenant's rights under this section;
by registered or certified mail.
    (f) A tenant of real property described in subsection (b) has the right to terminate the tenant's rental agreement upon written notice delivered to the former landlord. Termination of a rental agreement under this subsection is effective on a date established by the tenant, but not earlier than:
        (1) ten (10) days after the tenant receives the written notice described in subsection (e); or
        (2) ten (10) days after the date the judgment of foreclosure is entered, if the tenant does not timely receive the written notice described in subsection (e).
    (g) A tenant who terminates a rental agreement under this section is liable for all rent and other charges due under the rental agreement to the effective date of termination, in an amount that is prorated to the effective date of termination. Rent due under this subsection is payable at the time it would have been payable under the terms of the rental agreement being terminated.
    (h) Except for the rent and other charges payable as described in subsection (g), a tenant who terminates a rental agreement under this section is not liable for any other rent or charges solely because of the early termination of the rental agreement. However, a tenant may be liable for other charges if the tenant causes damage to the rental premises.
    (i) A tenant may bring an action in any court having jurisdiction to enforce an obligation of a former owner or a former landlord under this section, or to obtain a remedy for the former owner's noncompliance. If the tenant prevails in an action brought under this section, the tenant may recover:
        (1) actual and consequential damages;
        (2) reasonable attorney's fees and court costs; and
        (3) reasonable relocation expenses.
    (j) A waiver of this chapter by a landlord or current or former tenant, by contract or otherwise, is void.