Sec. 5. (a) A purchaser under a land sales contract is eligible for a loan to cover the costs of repairs that will bring the purchaser’s home into compliance with applicable building code standards, if all of the following conditions are present:

(1) The contract is a written, legally binding instrument involving a residential property containing, after rehabilitation, not more than four (4) dwelling units.

Terms Used In Indiana Code 36-7-16-5

  • Agency: refers to the department of metropolitan development in a county having a consolidated city, the works board in second class cities, and the department of redevelopment in other units. See Indiana Code 36-7-16-2
  • Contract: A legal written agreement that becomes binding when signed.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Fee simple: Absolute title to property with no limitations or restrictions regarding the person who may inherit it.
  • Home: means a residential building containing no more than four (4) family dwelling units. See Indiana Code 36-7-16-2
  • Property: includes personal and real property. See Indiana Code 1-1-4-5
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(2) The seller of the property holds fee title to the property, and, while the contract is in good standing, is unable to use the property for collateral or to convey it to any other party, unless the use for collateral or conveyance of fee is subject to the land sales contract. The agency shall record this agreement, or the contract, promptly after loan settlement.

(3) Under the contract, the seller and any subsequent holder of the fee to the property is obligated, without qualification, to deliver to the purchaser fee simple title and a deed to the property upon full payment of the contract price, or some lesser amount.

(4) Under the contract, the purchaser has:

(A) full use, possession, and quiet enjoyment of the property;

(B) equitable title to the property; and

(C) full rights of redemption for a period of not less than ninety (90) days.

(5) The purchaser has had possession and use of the property under the contract for at least twelve (12) months before the date of application for a loan. If the loan is to include an amount to refinance the balance due under a land sales contract, this requirement does not apply.

     (b) The agency may purchase the property from the contract seller at any time by the exercise of any right of accelerated payment that is provided for under the contract, by negotiation with the contract seller, or by the exercise of the power of eminent domain.

[Pre-Local Government Recodification Citations: 18-7-7.5-1 part; 18-7-7.5-4; 18-7-7.5-5.]

As added by Acts 1981, P.L.309, SEC.35. Amended by P.L.127-2017, SEC.209.

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