IN Code § 24-9-3-7 (2021)
2021 Indiana Code|Title 24. Trade Regulation|Article 9. Home Loan Practices|Chapter 3. Prohibited Lending Practices Generally|24-9-3-7. Mortgage Transactions and Real Estate Transactions; Prohibited Acts; Land Contracts; Written Notice of Encumbrances

Sec. 7. (a) As used in this section, "mortgage transaction" includes the following:(1) A home loan subject to this article.(2) To the extent allowed under federal law, a loan described in IC 24-9-1-1 that is secured by a mortgage or a land contract (or another consensual security interest equivalent to a mortgage or a land contract) on real estate in Indiana on which there is located or will be located a structure or structures:(A) designed primarily for occupancy of one (1) to four (4) families; and(B) that is or will be occupied by a borrower as the borrower's principal dwelling.(3) A first lien mortgage transaction (as defined in IC 24-4.4-1-301) subject to IC 24-4.4.(4) A consumer credit sale subject to IC 24-4.5-2 in which a mortgage or a land contract (or another consensual security interest equivalent to a mortgage or a land contract) that constitutes a lien is created or retained against land:(A) that is located in Indiana; and(B) upon which there is constructed or intended to be constructed a dwelling that is or will be used by the debtor primarily for personal, family, or household purposes.(5) A consumer loan subject to IC 24-4.5-3 in which a mortgage or a land contract (or another consensual security interest equivalent to a mortgage or a land contract) that constitutes a lien is created or retained against land:(A) that is located in Indiana; and(B) upon which there is constructed or intended to be constructed a dwelling that is or will be used by the debtor primarily for personal, family, or household purposes.(6) A loan in which a mortgage or a land contract (or another consensual security interest equivalent to a mortgage or a land contract) that constitutes a lien is created or retained against land:(A) that is located in Indiana;(B) upon which there is constructed or intended to be constructed a dwelling that is not or will not be used by the borrower primarily for personal, family, or household purposes; and(C) that is classified as residential for property tax purposes.The term includes a loan that is secured by land in Indiana upon which there is constructed or intended to be constructed a dwelling that is purchased by or through the borrower for investment or other business purposes.(7) A reverse mortgage transaction that is secured by real estate in Indiana on which there is located a structure that is occupied by a borrower as the borrower's principal dwelling.(b) As used in this section, "real estate transaction" means the sale or lease of any legal or equitable interest in real estate:(1) that is located in Indiana;(2) upon which there is constructed or intended to be constructed a dwelling; and(3) that is classified as residential for property tax purposes.(c) A person may not do any of the following:(1) Divide a home loan transaction into separate parts with the intent of evading a provision of this article.(2) Structure a home loan transaction as an open-end loan with the intent of evading the provisions of this article if the home loan would be a high cost home loan if the home loan had been structured as a closed-end loan.(3) Engage in a deceptive act in connection with a mortgage transaction or a real estate transaction.(4) Engage in, or solicit to engage in, a real estate transaction or a mortgage transaction without a permit or license required by law.(5) With respect to a real estate transaction or a mortgage transaction, represent that:(A) the transaction has:(i) certain terms or conditions; or(ii) the sponsorship or approval of a particular person or entity;that it does not have and that the person knows or reasonably should know it does not have; or(B) the real estate or property that is the subject of the transaction has any improvements, appurtenances, uses, characteristics, or associated benefits that it does not have and that the person knows or reasonably should know it does not have.(6) Maintain or offer to maintain an account for the receipt of funds for the payment of real estate taxes and insurance unless the person is any of the following:(A) Any of the following that is chartered under the laws of a state or the United States:(i) A bank.(ii) A savings and loan association.(iii) A credit union.(iv) A savings bank.(B) The creditor in a mortgage transaction.(C) A mortgage servicer acting on behalf of the creditor in a mortgage transaction.(D) A closing agent (as defined in IC 27-7-3.7-1).(7) Fail to provide the notice required under subsection (d), within the time specified in subsection (d), if the person is a seller in a real estate transaction described in subsection (d).(d) This subsection applies to a real estate transaction that involves a land contract between the seller and the buyer in the transaction. If the real estate that is the subject of the transaction is subject to any encumbrance, including any tax lien, foreclosure action, legal judgment, or other encumbrance affecting the title to the real estate, the seller must provide written notice by certified mail, return receipt requested, of the encumbrance to the buyer:(1) not later than the time the land contract is executed, if the encumbrance is created before or at the time the land contract is executed; or(2) not later than ten (10) business days after the encumbrance is created, if the encumbrance is created after the land contract is executed.As added by P.L.73-2004, SEC.33. Amended by P.L.141-2005, SEC.5; P.L.52-2009, SEC.7; P.L.105-2009, SEC.8; P.L.114-2010, SEC.18; P.L.89-2011, SEC.28; P.L.27-2012, SEC.33; P.L.13-2013, SEC.67.