It is hereby declared to be the purpose of this chapter to regulate the practice of converting residential apartment dwellings to condominiums in order to protect the public safety, health and welfare, by establishing procedures for such conversions and providing certain rights to tenants affected by such conversions. This chapter shall be construed liberally to ensure protection for the consumer tenant when he is subject to a condominium conversion.

(Code 1975, § 15-16)

For the purpose of this chapter, the following terms, phrases and words shall have the meanings assigned to them by this section unless their use in the text of this chapter clearly demonstrates a different meaning. When not inconsistent with the context, words used in the present tense include the future tense, words used in the plural number include the singular number, words used in the singular number include the plural number, words in the masculine gender include the feminine gender and words in the feminine gender include the masculine gender. The word "shall" is always mandatory and not merely directory.

(a)

Condominium means real estate formally submitted to the provisions of the Indiana Horizontal Property Law, as that act may be amended from time to time.

(b)

Condominium instruments means the declaration bylaws and plats and floor plans of the condominium, together with any exhibits or schedules thereto, which the Indiana Horizontal Property Law requires to be filed in the office of the county recorder.

(c)

Condominium unit means an enclosed space consisting of one (1) or more rooms occupying all or part of a floor or floors in a structure of one (1) or more floors or stories designed for residential use with either a direct exit to a public street or highway or an exit to a thoroughfare or to a given common space leading to a thoroughfare, together with the undivided interest in the common areas as that phrase is defined by the Indiana Horizontal Property Law.

(d)

Conversion condominium means a condominium in which some or all of the units were occupied before the establishment of the condominium.

(e)

Declaration means the declaration required to be filed in the office of the county recorder by the Indiana Horizontal Property Law in order to bring property within the provisions of that law.

(f)

Developer means any person who submits property legally or equitably owned by him to the provisions of the Indiana Horizontal Property Law, including any successor to such developer's entire interest in the property.

(g)

Person means an individual, firm, corporation, partnership, association, trust or other legal entity, or any combination thereof.

(h)

Tenant means a person occupying, under an existing lease, a unit of a building located on property which has not been submitted to the provisions of the Indiana Horizontal Property Law. For the purposes of the right of first option given in section 551-202(b) hereof, "tenant" means a tenant who was a tenant on the date of the notice of intent and a tenant on the date he exercises his right of first option.

(Code 1975, § 15-17)

Cross reference— Definitions generally, ch. 102.

This chapter shall apply to all residential property within the consolidated first-class City of Indianapolis, which is brought within the provisions of the Indiana Horizontal Property Law so as to make the property a conversion condominium, as defined herein; provided, however, that this chapter shall not apply to:

(1)

Condominium units which, prior to January 1, 1980, have been sold under a binding contract of sale to a purchaser for use as a residence;

(2)

Condominiums lawfully established prior to January 1, 1980.

(Code 1975, § 15-18)

(a)

A developer intending to submit property to the provisions of the Indiana Horizontal Property Law shall give notice of such intent, no less than one hundred twenty (120) days and not more than one (1) year prior to the recording of a declaration and other condominium instruments, to all persons who are tenants on the date such notice is given.

(b)

The notice of intent shall be delivered to each tenant either by personal delivery or by registered or certified mail, return receipt requested.

(c)

The notice of intent shall contain:

(1)

A proposed date, no earlier than one hundred twenty (120) days from the date of delivery of the notice, upon which the developer intends to file the declaration in the office of the county recorder;

(2)

A copy of the proposed declaration and bylaws;

(3)

A copy of the disclosure statement required by section 551-203;

(4)

A statement clearly explaining the rights given each tenant under the terms of section 551-202 hereof.

The notice of intent may be conditioned upon the attainment of a fixed percentage of condominium sales within a fixed period of time for the stated condominium conversion development.

(Code 1975, § 15-25)

(a)

Any person who was a tenant on the date of the notice of intent and whose tenancy expires other than for cause prior to the expiration of one hundred twenty (120) days from the date on which a copy of the notice of intent was received shall have the right to an additional tenancy on the same terms and conditions for the same rental until the expiration of such one-hundred-twenty-day period if such tenant gives written notice to the developer of his intent to exercise that right within thirty (30) days of the date upon which the notice of intent was received. Any additional tenancy may be withheld if the tenant is in arrears, has committed waste, or has been determined to cause a general nuisance. In the case of any tenant who is over sixty-five (65) years of age, or who is deaf or blind or unable to walk without mechanical assistance, such tenant shall have the right, upon giving written notice, to an additional tenancy on the same terms and conditions and for the same rental for a period of one hundred eighty (180) days following receipt of notice of intent if such tenant gives written notice of his intent to exercise that right within thirty (30) days of the date upon which the notice of intent was received.

(b)

A developer shall not sell or offer to sell any conversion condominium unit which is in the possession of a tenant who received notice pursuant to section 551-201 without first offering to sell such unit to such tenant. The developer shall deliver to such tenant, either by personal delivery or by registered or certified mail, return receipt requested, an offer to sell such unit, specifying the price and all other terms and conditions of the offer. Such offer shall be made no later than one hundred twenty (120) days before the date upon which the developer will require the tenant to vacate. No tenant entitled to receive such an offer shall be required to vacate his unit any earlier than one hundred twenty (120) days from the receipt of such offer, except by reason of nonpayment of rent, waste or conduct that disturbs other tenants' peaceful enjoyment of the premises, and the terms of the tenancy shall not be altered during that period. The tenant shall have sixty (60) days from receipt of the offer to either accept or reject such offer. If the tenant rejects the offer or fails to accept the offer within the sixty-day period, the developer may not offer to dispose of an interest in that unit during the ninety (90) days following either the tenant's rejection of the offer or the expiration of the sixty-day period, whichever occurs first, at the price or on terms more favorable to the offeree than the price or terms offered to the tenant.

(c)

If a developer, in violation of subsection (b), conveys a unit to a purchaser for value who has no knowledge of the violation, recordation of the deed conveying the unit extinguishes any right a tenant may have under subsection (b) to purchase that unit if the deed states that the seller has complied with subsection (b), but does not affect any claim the tenant may have against the developer for damages, nor does it affect the penalties provided in section 551-204 hereof.

(Code 1975, § 15-26)

The disclosure statement required to be delivered to each tenant by section 551-201(c) shall include the following information:

(1)

The name, address and telephone number of the developer who proposes to submit the premises to the provisions of the Indiana Horizontal Property Law;

(2)

A copy of a report from a qualified registered architect or licensed professional engineer describing the present condition and expected useful life of the roof, foundation, external and supporting walls, mechanical, electrical, plumbing, heating and structural elements and all other common facilities, together with an estimate of repair and replacement, at current market prices;

(3)

A list of any outstanding notices of uncured violations of the building code, zoning or other municipal regulations, together with the estimated cost of curing those violations;

(4)

An itemized common area expense budget providing the estimated cost of all operating, administrative, maintenance, repair and other expenses which are to be paid by the owners of condominium units on a pro rata basis;

(5)

A statement of all current real property taxes and other assessments against the property, and the estimated amount of such taxes or assessments which will be payable by the unit owner;

(6)

A statement of the initial offering price for the condominium to be sold and the terms and conditions for such sale;

(7)

A statement of any available financing arrangements for a tenant.

(Code 1975, § 15-27)

(a)

Any person found guilty of violating any of the provisions of this chapter, upon conviction thereof, may be punished by a fine not to exceed one thousand dollars ($1,000.00) per violation.

(b)

Any person who makes or causes to be made any material misrepresentations with respect to the information required to be included in a disclosure statement shall be guilty of a violation of this chapter, and upon conviction may be punished by a fine not to exceed one thousand dollars ($1,000.00).

(c)

The penalty provisions of this section shall be in addition to any legal or equitable remedy available under the laws of the State of Indiana.

(Code 1975, § 15-28)