CHAPTER 7. REAL PROPERTY TRANSACTIONS
IC 8-23-7
Chapter 7. Real Property Transactions
IC 8-23-7-1
Application of chapter
Sec. 1. Except as otherwise provided in this chapter, IC 32-24-1
applies to real property transactions conducted by the department.
As added by P.L.18-1990, SEC.216. Amended by P.L.2-2002,
SEC.48.
IC 8-23-7-2
Purposes for acquiring real property
Sec. 2. The department may acquire real property for any purpose
necessary to carry out this article, including the following:
(1) To locate, relocate, construct, reconstruct, repair, or
maintain a state highway, including area for:
(A) the placement of a utility facility within the right-of-way
of the state highway system; or
(B) the relocation of a utility facility within the right-of-way
of the state highway system due to interference with a
highway improvement project.
(2) To widen or straighten a highway.
(3) To clear and remove obstructions to vision at crossings and
curves.
(4) To construct weigh stations and rest areas.
(5) To provide scenic easements and other areas necessary to
cooperate with the federal government or carry out a federal
law.
(6) To facilitate long-range transportation planning.
As added by P.L.18-1990, SEC.216. Amended by P.L.35-2005,
SEC.2.
IC 8-23-7-3
Railroad rights-of-way
Sec. 3. The department may transfer fee simple title or a lesser
interest in property to a railroad for a right-of-way.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-4
Description of property to be acquired; preparation and filing
Sec. 4. If:
(1) the department determines the location of a state highway;
and
(2) the location of the highway requires the department to
acquire real property, easements in real property, or rights in
real property;
the department may prepare a metes and bounds or other description
of the property or rights to be acquired. The description shall be filed
in the office of the recorder in the county in which the real property
is located.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-5
Notice to owners; delivery
Sec. 5. The department shall give written notice to the owners of
property described in section 4 of this chapter that the department
intends to acquire the real property or rights for highway purposes.
The notice may be served in person or sent by certified mail to the
owners of the property at the address shown on the tax records of the
county.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-6
Improvement and changes in use of property; restrictions
Sec. 6. An owner receiving notice under section 5 of this chapter
may not erect improvements on the real property described,
subdivide the property, or make any changes in the use of the
property that would affect its use for highway purposes, unless the
owner first notifies the department in writing of the intended use.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-7
Improvement and changes in use of property; time limit for state
action
Sec. 7. Whenever the department receives notice under section 6
of this chapter, the department has ninety (90) days to purchase the
real property affected or commence condemnation proceedings. If at
the end of ninety (90) days the department has not entered into a
contract for the purchase of the real property or commenced
condemnation proceedings, the owner may proceed with the
improvement, subdivision, or use if not otherwise prohibited by law.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-8
Variances and building permits; notice to department; hearing
Sec. 8. If the property described in section 4 of this chapter lies
within a political subdivision that has an ordinance regulating
property use or requiring a building permit, the owner of the property
shall give written notice to the department of an application or
petition for a variance or building permit. The owner shall give
notice by sending a copy of the petition or application to the
department by certified mail not later than ten (10) days before a
hearing is held by local authorities on the petition or application. The
department may remonstrate and be heard at a hearing concerning the
property by an attorney or representative.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-9
Improvement and changes in use of property; loss of notice rights
Sec. 9. If the department has not acquired or commenced
condemnation proceedings to acquire the real property, rights, or
easements described in section 4 of this chapter within three (3)
years after filing the description with the county recorder, the
department loses the right to receive notice of improvements,
subdivisions, or changes on the property that the department acquired
by filing a description under section 4 of this chapter.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-10
Publication of information concerning purchased property
Sec. 10. Whenever the department purchases real property by
agreement with the owner of the real property as to purchase price,
the department shall, in accordance with IC 5-3-1-2(i), publish a list
of the following:
(1) The owners from whom the property was purchased.
(2) The number of acres in each property purchased.
(3) The purchase price of each property.
As added by P.L.18-1990, SEC.216. Amended by P.L.64-1995,
SEC.9.
IC 8-23-7-11
Vouchers for payment; attaching grant or deed copies
Sec. 11. A copy of a grant or deed purchased by the department
shall be attached to each voucher submitted for payment under this
chapter. The auditor of state may not draw and pay the voucher
unless the copy is attached.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-12
Vouchers for payment; certification; payment
Sec. 12. If condemnation proceedings have been instituted
concerning real property, the department shall certify to the auditor
of state that the voucher submitted is for escrow and is to be paid to
the clerk of the circuit court. The voucher shall be in the amount
determined and filed with the clerk of the circuit court. The payment
shall be for the use and benefit of the owner of the property sought
to be purchased.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-13
Sale of surplus property
Sec. 13. If the department determines that real property owned in
fee simple by the department will not be needed for a purpose
described in section 2 of this chapter, the commissioner may, with
the approval of the budget agency, issue an order describing the
surplus property and offering the surplus property for sale at or
above its fair market value as determined by appraisers of the
department. The department may combine or divide parcels of
surplus property to facilitate the sale of the property.
As added by P.L.18-1990, SEC.216. Amended by P.L.246-2005,
SEC.86.
IC 8-23-7-14
Sale of surplus property separated from abutting parcel; offer to
abutting property owner
Sec. 14. If a property found to be surplus under section 13 of this
chapter abuts a parcel of land from which the surplus property was
separated and acquired by the department, the surplus property must
first be offered for sale to the owner of the abutting property. An
offer under this section shall be made by certified mail to the last
known address of the owner. If the owner accepts an offer under this
section, the surplus property shall be conveyed to the owner by
quitclaim deed upon payment to the department of not less than the
fair market value of the property as determined by the appraisers of
the department.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-15
Sale of surplus property separated from abutting parcel;
procedure when abutting property owner fails to accept offer
Sec. 15. (a) If an owner offered surplus property under section 14
of this chapter fails to accept the offer within thirty (30) days, the
department may furnish a certified copy of:
(1) the order issued under section 13 of this chapter; and
(2) the appraised value of the surplus property;
to the department of administration.
(b) The surplus property may be sold in the same manner as other
real property belonging to the state is sold at no less than its
appraised value. The proceeds of the sale shall be credited to the
department. A sale under this section is subject to the approval of the
governor.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-16
Sale of surplus property valued at $4,000 or less
Sec. 16. If the appraised value of real property determined to be
surplus under section 13 of this chapter does not exceed four
thousand dollars ($4,000), the department may sell the surplus
property without advertising or competitive bids for not less than the
full appraised value of the surplus property upon approval by the
commissioner and the governor.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-17
Exchange of lands, rights, and easements; criteria
Sec. 17. Whenever the department determines that because of:
(1) a change in location of a state highway; or
(2) any other reason;
a parcel of real property owned by the department, or in which the
department has rights or an easement, will not be needed, the
department may exchange the parcel of property, the rights in the
property, or easement in the property for a parcel of property, rights
in a property, or an easement in a property, which the department
determines is needed.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-18
Exchange of lands, rights, and easements; valuation; payments for
differences in value
Sec. 18. Before making an exchange under section 17 of this
chapter, both parcels of real property shall be appraised. Any
difference in value between the two parcels of property shall be paid
or received by the department. A sum received under this section
shall be deposited with the treasurer of state and credited to the state
highway construction fund.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-19
Exchange of lands, rights, and easements; improvements
Sec. 19. (a) If an exchange under section 17 of this chapter
includes improvements to be constructed on either parcel of real
property, the department shall enter into an agreement with the
owner of the parcel of property that the department will receive. An
agreement under this section must include the following:
(1) The appraisal required under section 18 of this chapter must
include the value of improvements constructed or to be
constructed on the property.
(2) The construction contract for improvements under this
section must be guaranteed by a construction or performance
bond issued by a surety company approved by the department.
The department:
(A) shall require a performance bond from a contractor for
a project if the estimated cost of the project is more than two
hundred thousand dollars ($200,000); and
(B) may require a performance bond from a contractor for a
project if the estimated cost of the project is not more than
two hundred thousand dollars ($200,000).
(3) The plans and specifications for improvements under this
section must be certified by a licensed architect or engineer.
(b) The department must approve in writing the construction
contract, bond, plans, and specifications for the improvements before
entering into an exchange agreement under this section.
As added by P.L.18-1990, SEC.216. Amended by P.L.133-2007,
SEC.10.
IC 8-23-7-20
Exchange of lands, rights, and easements; attaching construction
contracts, bonds, or plans to exchange agreements
Sec. 20. The construction contract, bond, plans, and specifications
required under section 19 of this chapter shall be attached to the
exchange agreement for the parcels of property and incorporated by
reference into the exchange agreement.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-21
Exchange of lands, rights, and easements; improvement completion
requirement
Sec. 21. An exchange agreement under section 19 of this chapter
is not completed until the improvements specified in the agreement
have been constructed in accordance with the plans and
specifications approved by the department. The department may not
pay or receive any difference in value between the real properties
exchanged until the improvements are completed and approved.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-22
Change of state highway to tollway
Sec. 22. (a) Subject to subsection (b), the department may, after
issuing an order and receiving the governor's approval, determine
that a state highway should become a tollway. After the order
becomes effective, the department shall maintain and operate the
tollway and levy and collect tolls as provided in IC 8-15-3 or enter
into a public-private agreement with an operator with respect to the
tollway under IC 8-15.7. Before issuing an order under this section,
the department shall submit to the governor a plan to bring the
tollway to the current design standards of the department for new
state highways within a specified period. The specified period may
not exceed five (5) years.
(b) Notwithstanding any other law, the governor, the department,
or an operator may not carry out any of the following activities under
this section unless the general assembly enacts a statute authorizing
that activity:
(1) Determine that a highway, other than:
(A) Interstate Highway 69 between Interstate Highway 64
and a city having a population of more than eleven thousand
five hundred (11,500) but less than eleven thousand seven
hundred forty (11,740);
(B) the Illiana Expressway, a limited access facility
connecting Interstate Highway 65 in northwestern Indiana
with an interstate highway in Illinois; or
(C) a project that is located within a metropolitan planning
area (as defined by 23 U.S.C. 134) and that connects the
state of Indiana with the commonwealth of Kentucky.
should become a tollway.
(2) Carry out construction for Interstate Highway 69 in a
township having a population of more than seventy-five
thousand (75,000) and less than ninety-three thousand five
hundred (93,500).
(3) Impose tolls on motor vehicles for use of the part of an
interstate highway that connects a consolidated city and a city
having a population of more than eleven thousand five hundred
(11,500) but less than eleven thousand seven hundred forty
(11,740).
As added by P.L.18-1990, SEC.216. Amended by P.L.47-2006,
SEC.41; P.L.85-2010, SEC.24.
IC 8-23-7-23
Change of state highway to toll road
Sec. 23. (a) Subject to subsection (c), the department may, after
issuing an order and receiving the governor's approval, determine
that a state highway should become a toll road. An order under this
section does not become effective unless the authority adopts a
resolution to accept the designated state highway, or part of the
highway, as a toll road project under the conditions contained in the
order. An order issued by the department under this section must set
forth the conditions upon which the transfer of the state highway, or
part of the highway, to the authority must occur, including the
following:
(1) The consideration, if any, to be paid by the authority to the
department.
(2) A requirement that the authority:
(A) enter into a contract or lease with the department with
respect to the toll road project under IC 8-9.5-8-7 or
IC 8-9.5-8-8; or
(B) enter into a public-private agreement with an operator
with respect to the toll road under IC 8-15.5.
(b) To complete a transfer under this section, the department
must, with the governor's approval, execute a certificate describing
the real and personal property constituting or to be transferred with
the state highway that is to become a toll road project. Upon delivery
of the certificate to the authority, the real and personal property
described in the certificate is under the jurisdiction and control of the
authority.
(c) Notwithstanding any other law, neither the authority nor an
operator may carry out any of the following activities under this
section unless the general assembly enacts a statute authorizing that
activity:
(1) Carrying out construction for Interstate Highway 69 in a
township having a population of more than seventy-five
thousand (75,000) and less than ninety-three thousand five
hundred (93,500).
(2) Imposing tolls on motor vehicles for use of the part of an
interstate highway that connects a consolidated city and a city
having a population of more than eleven thousand five hundred
(11,500) but less than eleven thousand seven hundred forty
(11,740).
As added by P.L.18-1990, SEC.216. Amended by P.L.47-2006,
SEC.42.
IC 8-23-7-24
Designated parts of state highway allowed to be either tollway or
toll road
Sec. 24. A designated part of a state highway may become a
tollway under the jurisdiction of the department under section 22 of
this chapter and another designated part of the same state highway
may become a toll road project under the jurisdiction of the authority
under section 23 of this chapter. If a tollway and a toll road are
contiguous parts of the same state highway, the contract or lease
entered into under section 23 of this chapter may provide for
coordination in the operation and maintenance of the tollway and the
toll road project, including joint toll collection facilities and
agreement on an equitable division of tolls.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-25
Change of state highways to tollways and toll roads; effectiveness
of orders
Sec. 25. An order issued under section 22 or 23 of this chapter
does not become effective until:
(1) all conditions in the order are satisfied; and
(2) all conditions in an agreement relating to a state highway
that is the subject of an order under section 22 or 23 of this
chapter entered into by the Secretary, acting by and through the
federal highway administrator, and the state, acting by and
through the department or the authority, are satisfied or waived.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-26
Surveys and investigations; right of entry
Sec. 26. An authorized employee or representative of the
department engaged in a survey or investigation authorized by the
commissioner or the commissioner's designee, including a survey or
investigation for purposes of IC 8-23-5-9, may enter upon, over, or
under any land or property within Indiana to conduct the survey or
investigation by manual or mechanical means, which include the
following:
(1) Inspecting.
(2) Measuring.
(3) Leveling.
(4) Boring.
(5) Trenching.
(6) Sample-taking.
(7) Archeological digging.
(8) Investigating soil and foundation.
(9) Transporting equipment.
(10) Any other work necessary to carry out the survey or
investigation.
As added by P.L.18-1990, SEC.216. Amended by P.L.99-2008,
SEC.2.
IC 8-23-7-27
Surveys and investigations; notification of occupants
Sec. 27. (a) Before an authorized employee or representative of
the department enters upon, over, or under any land or water under
section 26 of this chapter, the occupant of the land or water shall be
notified in writing by first class United States mail of the entry not
later than five (5) days before the date of entry. The employee or
representative of the department shall present written identification
or authorization to the occupant of the land or water before entering
the land or water.
(b) At the same time and in the same manner as the notice
required under subsection (a), the department shall notify the
occupant and the record owner of the land or property of the
following:
(1) With respect to damage that occurs to the land or property
as a result of entry upon, over, or under the land or property as
set forth in section 26 of this chapter:
(A) a description of the aggrieved party's right to
compensation for the damage from the department; and
(B) the procedure that the aggrieved party must follow to
obtain the compensation.
(2) The name, mailing address, and telephone number of an
individual or office within the department to which an
aggrieved party may direct questions concerning the rights and
procedures described in subdivision (1).
As added by P.L.18-1990, SEC.216. Amended by P.L.99-2008,
SEC.3.
IC 8-23-7-28
Surveys and investigations; compensation for damages
Sec. 28. If during an entry under section 26 of this chapter damage
occurs to the land or water as a result of the entry or work performed
during the entry, the department shall compensate the aggrieved
party. If the aggrieved party is not satisfied with the compensation
determined by the department, the amount of damages shall be
assessed by the county agricultural extension educator of the county
in which the land or water is located and two (2) disinterested
residents of the county, one (1) appointed by the aggrieved party and
one (1) appointed by the department. A written report of the
assessment of damages shall be mailed to the aggrieved party and the
department by first class United States mail. If either the department
or the aggrieved party is not satisfied with the assessment of
damages, either or both may file a petition, not later than fifteen (15)
days after receiving the report, in the circuit or superior court of the
county in which the land or water is located. The department shall
pay any compensation awarded to an aggrieved party under this
section:
(1) not more than sixty (60) days after the date on which the
parties agree to the amount of the compensation; or
(2) as ordered by the circuit or superior court.
As added by P.L.18-1990, SEC.216. Amended by P.L.40-1993,
SEC.3; P.L.99-2008, SEC.4.
IC 8-23-7-29
Priority of actions
Sec. 29. Court proceedings to acquire real property, rights, or
easements under this chapter take precedence over all cases not
involving the public interest in all courts.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-30
Municipal acquisition of rights-of-way
Sec. 30. The authority given the department under this chapter to
acquire lands by purchase or by the exercise of the right of eminent
domain may not be construed to prohibit a municipality from:
(1) acquiring at its own expense, either by grant, purchase, or
condemnation, the necessary right-of-way required by the
department for the maintenance, construction, or improvement
of a street of the municipality as a part of a highway under the
control of the department; or
(2) entering into an agreement to pay all or any part of the costs
of the necessary right-of-way.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-31
Acquisition of property, rights, and easements; legal description;
taxation
Sec. 31. (a) Whenever the department acquires real property,
rights, or easements for the construction, repair, and maintenance of
a state highway, a legal description of all rights-of-way and
easements, including the area of the land acquired, shall be filed by
the department in the office of the recorder in the county in which
the real property is located. The description shall be recorded in the
deed records of the county. No fee may be charged for filing and
recording the description. The department shall also file the
description with the county auditor.
(b) Real property and interests in real property acquired for
permanent highway purposes are exempt from taxation from the date
of acquisition, provided that all taxes, interest, and penalties recorded
on the property tax duplicates have been paid. Where real property
or interests in real property are acquired after the assessment date of
any year but before December 31, the taxes on the property in the
ensuing year are not a lien on the property and shall be removed from
the tax duplicates by the county auditor. A property owner who on
or after March 1, 1965, conveyed real property or rights in real
property to the department and who after July 8, 1965, is assessed
taxes upon the property or rights conveyed and who pays the taxes
by reason of the failure of the department to properly record the
interest in the real property conveyed with the county auditor and
recorder for tax purposes may recover the amount of the taxes from
the department.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-32
Preservation of abstracts of title, title insurance policies, and other
title papers
Sec. 32. All abstracts of title, policies of title insurance, and other
title papers shall be kept and preserved permanently by the
department.
As added by P.L.18-1990, SEC.216.