Citations Affected: IC 24-5.5-3-2; IC 32-31-1-21.
Synopsis: Foreclosure of rental properties. Provides that in a
foreclosure proceeding involving property that includes one or more
residential rental units, the mortgagee shall, at the time that a judgment
or decree of sale is entered in the proceeding, provide written notice of
the judgment or decree to each tenant who occupies the property under
a rental agreement. Specifies that the notice must include a statement
of the tenant's: (1) right to terminate the rental agreement; and (2)
obligation to pay any outstanding rent upon termination. Provides that
a tenant who occupies a rental unit that is subject to a foreclosure
proceeding may, upon learning of a judgment or decree of sale in the
proceeding, terminate the rental agreement by providing written notice
to the landlord of the tenant's intention to terminate the rental
agreement on a date that is: (1) specified by the tenant in the notice;
and (2) at least ten days after the date of the tenant's notice. Provides
that upon termination of a rental agreement, the tenant is liable for rent
that may be due under the rental agreement, in an amount that is
prorated to the effective date of the termination. Provides that the
tenant is not liable for any other rent or damages due solely because of
the early termination of the rental agreement.
Effective: Upon passage.
January 8, 2008, read first time and referred to Committee on Judiciary.
A BILL FOR AN ACT to amend the Indiana Code concerning
property.
be sent by first class mail to each tenant who occupies the property
under a rental agreement. The notice shall be:
(1) addressed to the name of the tenant or, if the name of the
tenant is unknown or cannot be ascertained, to "occupant";
and
(2) sent to the address of the property that is the subject of the
judgment or decree of sale.
(d) The notice required under subsection (c) must include the
following:
(1) A statement of the tenant's right under IC 32-31-1-21 to
terminate the rental agreement by giving written notice to the
landlord at least ten (10) days before the date of the proposed
termination.
(2) A statement that if the tenant terminates the rental
agreement under IC 32-31-1-21, the tenant is liable for rent:
(A) that may be due under the rental agreement; and
(B) in an amount that is prorated to the effective date of
the termination.
(e) The failure of:
(1) a mortgagee; or
(2) a mortgagee's assignee;
to provide the notice required by this section does not affect a
tenant's right to terminate a rental agreement under IC 32-31-1-21.
tenant's rental agreement by giving written notice to the landlord
of the tenant's intention to terminate the rental agreement on a
date that is:
(1) specified by the tenant in the notice provided under this
subsection; and
(2) at least ten (10) days after the date of the notice provided
under this subsection.
(d) Upon the termination of a rental agreement under this
section, the tenant is liable for rent:
(1) that may be due under the rental agreement on the
effective date of the termination; and
(2) in an amount that is prorated to the effective date of the
termination.
Rent due under this subsection is payable at the time that it would
have been payable under the terms of the rental agreement being
terminated.
(e) Except for any rent for which the tenant is liable under
subsection (d), the tenant is not liable for any other:
(1) rent; or
(2) damages;
due solely because of the early termination of the rental agreement.