CHAPTER 8. ADMINISTRATION OF CONDOMINIUMS
IC 32-25-8
Chapter 8. Administration of Condominiums
IC 32-25-8-1
Bylaws; administration of property
Sec. 1. The administration of every property is governed by
bylaws. A true copy of the bylaws shall be annexed to and made a
part of the declaration. A modification of or amendment to the
bylaws is valid only if:
(1) the modification or amendment is set forth in an amendment
to the declaration; and
(2) the amendment is recorded.
As added by P.L.2-2002, SEC.10.
IC 32-25-8-2
Bylaws; contents
Sec. 2. The bylaws must provide for the following:
(1) With respect to the board of directors:
(A) the election of the board from among the co-owners;
(B) the number of persons constituting the board;
(C) the expiration of the terms of at least one-third (1/3) of
the directors annually;
(D) the powers and duties of the board, including whether
the board may engage the services of a manager or managing
agent;
(E) the compensation, if any, of the directors; and
(F) the method of removal from office of directors.
(2) The method of calling meetings of the co-owners and the
percentage, if other than a majority of co-owners, that
constitutes a quorum.
(3) The election from among the board of directors of a
president, who shall preside over the meetings of:
(A) the board of directors; and
(B) the association of co-owners.
(4) The election of a secretary, who shall keep the minute book
in which resolutions shall be recorded.
(5) The election of a treasurer, who shall keep the financial
records and books of account.
(6) The maintenance, repair, and replacement of the common
areas and facilities and payments for that maintenance, repair,
and replacement, including the method of approving payment
vouchers.
(7) The manner of collecting from each condominium owner the
owner's share of the common expenses.
(8) The designation and removal of personnel necessary for the
maintenance, repair, and replacement of the common areas and
facilities.
(9) The method of adopting and of amending administrative
rules governing the details of the operation and use of the
common areas and facilities.
(10) The restrictions on and requirements respecting the use and
maintenance of the condominium units and the use of the
common areas and facilities that are:
(A) not set forth in the declaration; and
(B) designed to prevent unreasonable interference with the
use of their respective units and of the common areas and
facilities by the several co-owners.
(11) The percentage of votes required to amend the bylaws.
(12) This subdivision applies only to a condominium located on
the shore of a lake located in a township with a population of
more than three thousand one hundred (3,100) but less than
three thousand eight hundred (3,800) located in a county having
a population of more than forty-five thousand (45,000) but less
than forty-five thousand nine hundred (45,900). A statement of
the percentage of votes by the condominium unit owners
required to convey or encumber part or all of the common areas
and facilities. A statement under this subdivision may not allow
less than ninety-five percent (95%) of the condominium unit
owners, or less than ninety-five percent (95%) of the owners of
condominium units not owned by the declarant, to convey or
encumber part or all of the common areas and facilities. If the
bylaws do not include a statement under this subdivision,
IC 32-25-4-3.5 applies.
(13) Other provisions consistent with this article considered
necessary for the administration of the property.
As added by P.L.2-2002, SEC.10. Amended by P.L.181-2007, SEC.4.
IC 32-25-8-3
Recording instruments; indexes
Sec. 3. (a) The following shall be recorded:
(1) A declaration.
(2) An amendment to a declaration.
(3) An instrument by which this article may be waived.
(4) An instrument affecting the property or any condominium
unit.
(b) A declaration and any amendment to a declaration are valid
only if the declaration or amendment is recorded.
(c) All of the laws of the state applicable to the recording of
instruments affecting real property apply to the recording of
instruments affecting any interest in a condominium unit.
(d) In addition to the records and indexes required to be
maintained by the recording officer, the recording officer shall
maintain an index or indexes in which:
(1) the record of each declaration contains a reference to the
record of each conveyance of a condominium unit affected by
the declaration; and
(2) the record of each conveyance of a condominium unit
contains a reference to the declaration of the building of which
the condominium unit is a part.
As added by P.L.2-2002, SEC.10.
IC 32-25-8-4
Sales and management offices; model units
Sec. 4. (a) A declarant may:
(1) maintain:
(A) sales offices;
(B) management offices; and
(C) model condominium units;
in the condominium only if the condominium instruments
provide for those items; and
(2) specify the rights of the declarant with regard to the:
(A) number;
(B) size;
(C) location; and
(D) relocation;
of the items referred to in subdivision (1).
(b) If the declarant ceases to be a condominium unit owner:
(1) an item referred to in subsection (a)(1) that is not designated
a condominium unit by the condominium instruments becomes
part of the common areas and facilities; and
(2) the declarant ceases to have any rights to the item referred
to in subdivision (1) unless the item is removed promptly from
the condominium real estate under a right reserved in the
condominium instruments to make the removal.
As added by P.L.2-2002, SEC.10.
IC 32-25-8-5
Alteration or structural changes; impairing easements or
hereditaments
Sec. 5. A condominium unit owner may not make an alteration or
structural change that would:
(1) jeopardize the soundness or safety of the property;
(2) reduce the value of the property; or
(3) impair any easement or hereditament;
unless the condominium unit owner has obtained the unanimous
consent of all the other co-owners.
As added by P.L.2-2002, SEC.10.
IC 32-25-8-6
Common profits and expenses
Sec. 6. The:
(1) common profits of the property shall be credited to; and
(2) common expenses of the property shall be charged to;
the condominium unit owners according to the percentage of the
owners' undivided interests in the common areas and facilities.
As added by P.L.2-2002, SEC.10.
IC 32-25-8-7
Taxes, assessments, and charges
Sec. 7. (a) Taxes, assessments, and other charges of:
(1) the state;
(2) any political subdivision;
(3) any special improvement district; or
(4) any other taxing or assessing authority;
shall be assessed against and collected on each condominium unit.
Taxes, assessments, and other charges referred to in this subsection
may not be assessed and collected on the building or property as a
whole.
(b) Each condominium unit shall be carried on the tax books as a
separate and distinct entity for the purpose of taxes, assessments, and
other charges.
(c) A forfeiture or sale of the building or property as a whole for
delinquent taxes, assessments, or charges may not divest or affect the
title to a condominium unit if taxes, assessments, and charges on the
condominium unit are currently paid.
As added by P.L.2-2002, SEC.10.
IC 32-25-8-8
Records
Sec. 8. (a) The manager or board of directors shall keep detailed,
accurate records in chronological order of the receipts and
expenditures affecting the common areas and facilities, specifying
and itemizing:
(1) the maintenance and repair expenses of the common areas
and facilities; and
(2) any other expenses incurred.
(b) The records and the vouchers authorizing the payments shall
be available for examination by the co-owners at convenient hours
of weekdays.
As added by P.L.2-2002, SEC.10.
IC 32-25-8-9
Insurance; co-owners
Sec. 9. (a) The co-owners, through the association of co-owners,
shall purchase:
(1) a master casualty policy, payable as part of the common
expenses, affording fire and extended coverage in an amount
consonant with the full replacement value of the improvement
that in whole or in part comprises the common areas and
facilities; and
(2) a master liability policy in an amount:
(A) required by the bylaws;
(B) required by the declaration; or
(C) revised from time to time by a decision of the board of
directors of the association.
(b) The policy referred to in subsection (a)(2) shall cover:
(1) the association of co-owners;
(2) the executive organ, if any;
(3) the managing agent, if any;
(4) all persons acting, or who may come to act, as agents or
employees of any of the entities referred to in subdivisions (1)
through (3) with respect to:
(A) the condominium;
(B) all condominium unit owners; and
(C) all other persons entitled to occupy any unit or other
portions of the condominium.
(c) Other policies required by the condominium instruments may
be obtained by the co-owners through the association, including:
(1) worker's compensation insurance;
(2) liability insurance on motor vehicles owned by the
association;
(3) specialized policies covering land or improvements on
which the association has or shares ownership or other rights;
and
(4) officers' and directors' liability policies.
(d) When any policy of insurance has been obtained by or on
behalf of the association of co-owners, the officer required to send
notices of meetings of the association of co-owners shall promptly
furnish to each co-owner or mortgagee whose interest may be
affected written notice of:
(1) the obtainment of the policy; and
(2) any subsequent changes to or termination of the policy.
As added by P.L.2-2002, SEC.10.
IC 32-25-8-10
Insurance; reconstruction of building
Sec. 10. (a) In case of fire or any other casualty or disaster, other
than complete destruction of all buildings containing the
condominium units:
(1) the improvements shall be reconstructed; and
(2) the insurance proceeds shall be applied to reconstruct the
improvements.
(b) In the event of complete destruction of all of the buildings
containing condominium units:
(1) the buildings shall not be reconstructed, except as provided
in subdivision (2), and the insurance proceeds, if any, shall be
divided among the co-owners:
(A) in the percentage by which each owns an undivided
interest in the common areas and facilities; or
(B) proportionately according to the fair market value of
each condominium unit immediately before the casualty as
compared with the fair market value of all other
condominium units;
as specified in the bylaws of the condominium; and
(2) the property shall be considered as to be removed from the
condominium under section 16 of this chapter, unless by a vote
of two-thirds (2/3) of all of the co-owners a decision is made to
rebuild the building.
(c) If a decision is made under subsection (b)(2) to rebuild the
building, the insurance proceeds shall be applied, and any excess of
construction costs over insurance proceeds shall be contributed as
provided in this section in the event of less than total destruction of
the buildings.
(d) A determination of total destruction of the buildings
containing condominium units shall be made by a vote of two-thirds
(2/3) of all co-owners at a special meeting of the association of
co-owners called for that purpose.
As added by P.L.2-2002, SEC.10.
IC 32-25-8-11
Insurance; reconstruction of building; insufficient proceeds
Sec. 11. (a) If:
(1) the:
(A) improvements are not insured; or
(B) insurance proceeds are not sufficient to cover the cost of
repair or reconstruction; and
(2) the property is not to be removed from the condominium;
the co-owners shall contribute the balance of the cost of repair or
reconstruction in the percentage by which a condominium unit owner
owns an undivided interest in the common areas and facilities as
expressed in the declaration.
(b) The amount of the contribution under subsection (a):
(1) is assessed as part of the common expense; and
(2) constitutes a lien from the time of assessment of the
contribution as provided in IC 32-25-6-3.
As added by P.L.2-2002, SEC.10.
IC 32-25-8-12
Determination not to rebuild after casualty or disaster
Sec. 12. The following apply if, under section 10 of this chapter,
it is not determined by the co-owners to rebuild after a casualty or
disaster has occurred:
(1) The property is considered to be owned in common by the
condominium unit owners.
(2) The undivided interest in the property owned in common
that appertains to each condominium unit owner is the
percentage of undivided interest previously owned by the owner
in the common areas and facilities.
(3) Any liens affecting any of the condominium units are
considered to be transferred in accordance with the existing
priorities to the percentage of the undivided interest of the
condominium unit owner in the property.
(4) The property is subject to an action for partition at the suit
of any condominium unit owner, in which event the net
proceeds of sale, together with the net proceeds of the insurance
on the property, if any:
(A) are considered as one (1) fund; and
(B) are divided among all the condominium unit owners in
a percentage equal to the percentage of undivided interest
owned by each owner in the property, after first paying out
of the respective shares of the condominium unit owners, to
the extent sufficient for the purpose, all liens on the
undivided interest in the property owned by each
condominium unit owner.
As added by P.L.2-2002, SEC.10.
IC 32-25-8-13
Expandable condominiums; addition of real estate
Sec. 13. (a) Subject to the declaration and this chapter, a declarant
may add additional real estate to an expandable condominium if an
amendment to the declaration required by subsection (b) is executed
in the manner described in section 3 of this chapter. The expansion
is effective when the instruments required by subsection (b) are
recorded.
(b) In expanding the condominium, the declarant shall:
(1) prepare, execute, and record amendments to the
condominium instruments; and
(2) record new plats and plans under IC 32-25-7-1 and
IC 32-25-7-4.
The amendment to the declaration shall assign an identifying number
to each condominium unit within the real estate being added and
shall reallocate undivided interests in the common areas and facilities
under IC 32-25-4-3.
As added by P.L.2-2002, SEC.10.
IC 32-25-8-14
Contractable condominiums; withdrawal of land
Sec. 14. (a) Subject to:
(1) the declaration;
(2) condominium instruments; and
(3) this chapter;
a declarant may withdraw withdrawable land from a contractable
condominium unless the withdrawal is prohibited by subsection (c).
The contraction is effective when the instruments required by
subsection (b) are recorded.
(b) In contracting the condominium, the declarant shall prepare,
execute, and record an amendment to the declaration and
condominium instruments:
(1) containing a legally sufficient description of the land being
withdrawn; and
(2) stating the fact of withdrawal.
(c) If a portion of the withdrawable land was described under
IC 32-25-7-3(6) and IC 32-25-7-3(7), that portion may not be
withdrawn if any person other than the declarant owns a
condominium unit situated on that portion of the withdrawable land.
If that portion of the withdrawable land was not described under
IC 32-25-7-3(6) and IC 32-25-7-3(7), none of the withdrawable land
may be withdrawn if any person other than the declarant owns a
condominium unit situated on that portion of the withdrawable land.
As added by P.L.2-2002, SEC.10.
IC 32-25-8-15
Reservation of option not to expand; disclosure
Sec. 15. If a declarant reserves an option in the declaration to not
expand the condominium, the declarant shall:
(1) make a full disclosure of that option to every prospective
buyer in writing before the buyer enters an agreement to
purchase a condominium unit; and
(2) obtain and retain an instrument acknowledging receipt of
that disclosure by the prospective buyer.
As added by P.L.2-2002, SEC.10.
IC 32-25-8-16
Removal of property
Sec. 16. (a) All of the co-owners may remove a property from this
article by a recorded removal instrument if the holders of all liens
affecting any of the condominium units:
(1) consent in a recorded instrument to the removal; or
(2) agree in a recorded instrument that their liens be transferred
to the percentage of the undivided interest of the condominium
unit owner in the property as provided in this section.
(b) If it is determined under section 10 of this chapter that all of
the buildings containing condominium units have been totally
destroyed:
(1) the property is considered removed from this article; and
(2) an instrument reciting the removal under section 10 of this
chapter shall be recorded and executed by the association of
co-owners.
(c) At the time of recording under subsection (b)(2), the property
is removed from this article.
(d) Upon removal of the property from this article, the property is
considered to be owned in common by the condominium unit
owners. The undivided interest in the property owned in common
that appertains to each condominium unit owner is the percentage of
undivided interest previously owned by the owner in the common
areas and facilities.
(e) Under the circumstances described in subsection (a) or in
subsections (b) through (d), the property is subject to an action for
partition at the suit of any condominium unit owner, in which event
the net proceeds of sale, together with the net proceeds of the
insurance on the property, if any:
(1) are considered as one (1) fund; and
(2) are divided among all the condominium unit owners in a
percentage equal to the percentage of undivided interest owned
by each owner in the property, after first paying out of the
respective shares of the condominium unit owners, to the extent
sufficient for the purpose, all liens on the undivided interest in
the property owned by each condominium unit owner.
(f) A removal under this section does not bar the subsequent
resubmission of the property to this article.
As added by P.L.2-2002, SEC.10.