April 10, 2009
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.
, 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.
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.
April 10, 2009
First Regular Session 116th General Assembly (2009)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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between statutes enacted by the 2008 Regular Session of the General Assembly.
SENATE BILL No. 225
A BILL FOR AN ACT to amend the Indiana Code concerning
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
(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.