2013 Indiana Code
TITLE 32. PROPERTY
ARTICLE 24. EMINENT DOMAIN
CHAPTER 4.5. PROCEDURES FOR TRANSFERRING OWNERSHIP OR CONTROL OF REAL PROPERTY BETWEEN PRIVATE PERSONS
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IC 32-24-4.5
Chapter 4.5. Procedures for Transferring Ownership or
Control of Real Property Between Private Persons
IC 32-24-4.5-1
Application of chapter; "public use"
Sec. 1. (a) As used in this section, "public use" means the:
(1) possession, occupation, and enjoyment of a parcel of real
property by the general public or a public agency for the
purpose of providing the general public with fundamental
services, including the construction, maintenance, and
reconstruction of highways, bridges, airports, ports, certified
technology parks, intermodal facilities, and parks;
(2) leasing of a highway, bridge, airport, port, certified
technology park, intermodal facility, or park by a public agency
that retains ownership of the parcel by written lease with right
of forfeiture; or
(3) use of a parcel of real property to create or operate a public
utility, an energy utility (as defined in IC 8-1-2.5-2), or a
pipeline company.
The term does not include the public benefit of economic
development, including an increase in a tax base, tax revenues,
employment, or general economic health.
(b) This chapter applies to a condemnor that exercises the power
of eminent domain to acquire a parcel of real property:
(1) from a private person;
(2) with the intent of ultimately transferring ownership or
control to another private person; and
(3) for a use that is not a public use.
(c) This chapter does not apply thirty (30) years after the
acquisition of the real property.
As added by P.L.163-2006, SEC.17.
IC 32-24-4.5-2
"Condemnor"
Sec. 2. As used in this chapter, "condemnor" means a person
authorized to exercise the power of eminent domain.
As added by P.L.163-2006, SEC.17.
IC 32-24-4.5-3
"Parcel of real property"
Sec. 3. As used in this chapter, "parcel of real property" means
real property that:
(1) is under common ownership; and
(2) a condemnor is seeking to acquire.
As added by P.L.163-2006, SEC.17.
IC 32-24-4.5-4
"Private person"
Sec. 4. As used in this chapter, "private person" means a person
other than a public agency.
As added by P.L.163-2006, SEC.17.
IC 32-24-4.5-5
"Public agency"
Sec. 5. (a) As used in this chapter, "public agency" means:
(1) a state agency (as defined in IC 4-13-1-1);
(2) a unit (as defined in IC 36-1-2-23);
(3) a body corporate and politic created by state statute;
(4) a school corporation (as defined in IC 20-26-2-4); or
(5) another governmental unit or district with eminent domain
powers.
(b) The term does not include a state educational institution.
As added by P.L.163-2006, SEC.17. Amended by P.L.2-2007,
SEC.365.
IC 32-24-4.5-6
"Relocation costs"
Sec. 6. As used in this chapter, "relocation costs" means
relocation expenses payable in accordance with the federal Uniform
Relocation Assistance Act (42 U.S.C. 4601 through 42 U.S.C. 4655).
As added by P.L.163-2006, SEC.17.
IC 32-24-4.5-7
Acquisition of property; conditions
Sec. 7. A condemnor may acquire a parcel of real property by the
exercise of eminent domain under this chapter only if all the
following conditions are met:
(1) At least one (1) of the following conditions exists on the
parcel of real property:
(A) The parcel contains a structure that, because of:
(i) physical condition;
(ii) use; or
(iii) occupancy;
constitutes a public nuisance.
(B) The parcel contains a structure that is unfit for human
habitation or use because the structure:
(i) is dilapidated;
(ii) is unsanitary;
(iii) is unsafe;
(iv) is vermin infested; or
(v) does not contain the facilities or equipment required by
applicable building codes or housing codes.
(C) The parcel contains a structure that is:
(i) a fire hazard; or
(ii) otherwise dangerous to the safety of persons or
property.
(D) The parcel contains a structure that is not fit for its
intended use because:
(i) the utilities;
(ii) the sewerage;
(iii) the plumbing;
(iv) the heating; or
(v) any other similar services or facilities;
have been disconnected, destroyed, removed, or rendered
ineffective.
(E) The parcel:
(i) is located in a substantially developed neighborhood;
(ii) is vacant or unimproved; and
(iii) because of neglect or lack of maintenance, has
become a place for the accumulation of trash, garbage, or
other debris or become infested by rodents or other
vermin, and the neglect or lack of maintenance has not
been corrected by the owner of the parcel within a
reasonable time after the owner receives notice of the
accumulation or infestation.
(F) The parcel and any improvements on the parcel are the
subject of tax delinquencies that exceed the assessed value
of the parcel and its improvements.
(G) The parcel poses a threat to public health or safety
because the parcel contains environmental contamination.
(H) The parcel has been abandoned.
(2) The acquisition of the parcel of real property through the
exercise of eminent domain is expected to accomplish more
than only increasing the property tax base of a government
entity.
(3) If the owner files a request for mediation at the time the
owner files an objection or exception to an eminent domain
proceeding, the mediation occurs as follows:
(A) The court shall appoint a mediator not later than ten (10)
days after the request for mediation is filed.
(B) The condemnor shall engage in good faith mediation
with the owner, including the consideration of a reasonable
alternative to the exercise of eminent domain.
(C) The mediation must be concluded not later than ninety
(90) days after the appointment of the mediator.
(D) The condemnor shall pay the costs of the mediator.
A determination concerning whether a condition described in this
section has been met is subject to judicial review in an eminent
domain proceeding concerning the parcel of real property. If a court
determines that an eminent domain proceeding brought under this
chapter is unauthorized because the condemnor did not meet the
conditions described in this section, the court shall order the
condemnor to reimburse the owner for the owner's reasonable
attorney's fees that the court finds were necessary to defend the
action.
As added by P.L.163-2006, SEC.17.
IC 32-24-4.5-8
Compensation for owners of acquired property
Sec. 8. Notwithstanding IC 32-24-1, a condemnor that acquires a
parcel of real property through the exercise of eminent domain under
this chapter shall compensate the owner of the parcel as follows:
(1) For agricultural land:
(A) either:
(i) payment to the owner equal to one hundred twenty-five
percent (125%) of the fair market value of the parcel as
determined under IC 32-24-1; or
(ii) upon the request of the owner and if the owner and
condemnor both agree, transfer to the owner of an
ownership interest in agricultural land that is equal in
acreage to the parcel acquired through the exercise of
eminent domain;
(B) payment of any other damages determined under
IC 32-24-1 and any loss incurred in a trade or business that
is attributable to the exercise of eminent domain; and
(C) payment of the owner's relocation costs, if any.
(2) For a parcel of real property occupied by the owner as a
residence:
(A) payment to the owner equal to one hundred fifty percent
(150%) of the fair market value of the parcel as determined
under IC 32-24-1;
(B) payment of any other damages determined under
IC 32-24-1 and any loss incurred in a trade or business that
is attributable to the exercise of eminent domain; and
(C) payment of the owner's relocation costs, if any.
(3) For a parcel of real property not described in subdivision (1)
or (2):
(A) payment to the owner equal to one hundred percent
(100%) of the fair market value of the parcel as determined
under IC 32-24-1;
(B) payment of any other damages determined under
IC 32-24-1 and any loss incurred in a trade or business that
is attributable to the exercise of eminent domain; and
(C) payment of the owner's relocation costs, if any.
As added by P.L.163-2006, SEC.17.
IC 32-24-4.5-9
Offer of settlement
Sec. 9. (a) Not later than forty-five (45) days before a trial
involving the issue of compensation, the condemnor shall, and an
owner may, file and serve on the other party an offer of settlement.
Not more than five (5) days after the date the offer of settlement is
served, the party served may respond by filing and serving upon the
other party an acceptance or a counter offer of settlement. The offer
must state that it is made under this section and specify the amount,
exclusive of interest and costs, that the party serving the offer is
willing to accept as just compensation and damages for the property
sought to be acquired. The offer or counter offer supersedes any
other offer previously made under this chapter by the party.
(b) An offer of settlement is considered rejected unless an
acceptance in writing is filed and served on the party making the
offer before the trial on the issue of the amount of damages begins.
(c) If the offer is rejected, it may not be referred to for any
purpose at the trial but may be considered solely for the purpose of
awarding costs and litigation expenses under section 10 of this
chapter.
(d) This section does not limit or restrict the right of an owner to
payment of any amounts authorized by law in addition to damages
for the property taken from the owner.
As added by P.L.163-2006, SEC.17.
IC 32-24-4.5-10
Costs of proceedings
Sec. 10. (a) Except as provided in subsection (b), the condemnor
shall pay the costs of the proceedings.
(b) If there is a trial, the additional costs caused by the trial shall
be paid as ordered by the court. However, if there is a trial and the
amount of damages awarded to the owner by the judgment, exclusive
of interest and costs, is greater than the amount specified in the last
offer of settlement made by the condemnor under section 9 of this
chapter, the court shall require the condemnor to pay the owner's
litigation expenses, including reasonable attorney's fees, in an
amount that does not exceed twenty-five percent (25%) of the cost
of the acquisition.
As added by P.L.163-2006, SEC.17.
IC 32-24-4.5-11
Acquisition of property in certain project areas
Sec. 11. (a) This section applies to a parcel of real property
located in a project area:
(1) that is located in only one (1) county;
(2) that is at least ten (10) acres in size; and
(3) in which a condemnor or its agents has acquired clear title
to at least ninety percent (90%) of the parcels in the project
area.
(b) As used in this section, "project area" means an area
designated by a condemnor and the legislative body for the
condemnor for economic development.
(c) Notwithstanding sections 7 and 8 of this chapter, a condemnor
may acquire a parcel of real property by the exercise of eminent
domain under this section only if all of the following conditions are
met:
(1) The parcel of real property is not occupied by the owner of
the parcel as a residence.
(2) The legislative body for the condemnor adopts a resolution
by a two-thirds (2/3) vote that authorizes the condemnor to
exercise eminent domain over a particular parcel of real
property.
(d) A condemnor that acquires a parcel of real property through
the exercise of eminent domain under this section shall compensate
the owner of the parcel as follows:
(1) Payment to the owner equal to one hundred twenty five
percent (125%) of the fair market value of the parcel as
determined under IC 32-24-1.
(2) Payment of any other damages as determined under
IC 32-24-1 and any loss incurred in a trade or business that is
attributable to the exercise of eminent domain.
(3) Payment of the owner's relocation costs, if any.
(e) The condemnor may not acquire a parcel of real property
through the exercise of eminent domain under this section if the
owner of the parcel demonstrates by clear and convincing evidence
that:
(1) the location of the parcel is essential to the viability of the
owner's commercial activity; and
(2) the payment of damages and relocation costs cannot
adequately compensate the owner of the parcel.
(f) The court shall award the payment of reasonable attorney's
fees to the owner of a parcel in accordance with this chapter.
As added by P.L.163-2006, SEC.17.
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