CHAPTER 4. OWNERSHIP INTEREST IN CONDOMINIUMS
IC 32-25-4
Chapter 4. Ownership Interest in Condominiums
IC 32-25-4-1
Fee simple title; conveyance and encumbrance of condominiums
Sec. 1. (a) If property is submitted to the condominium, eachcondominium unit owner is seized of:
(1) the fee simple title to;
(2) the exclusive ownership of; and
(3) the exclusive possession of;
the owner's condominium unit and undivided interest in the commonareas and facilities.
(b) A condominium unit may be:
(1) individually conveyed;
(2) individually encumbered; and
(3) the subject of:
(A) ownership;
(B) possession;
(C) sale; and
(D) all types of juridic acts inter vivos or causa mortis;
as if the condominium unit were sole and entirely independentof the other condominium units in the building of which thecondominium unit forms a part.
(c) Individual titles and interests with respect to condominiumunits are recordable.
As added by P.L.2-2002, SEC.10.
IC 32-25-4-2
Multiple ownership of condominiums
Sec. 2. A condominium unit may be held and owned by two (2) ormore persons:
(1) as joint tenants;
(2) as tenants in common;
(3) as tenants by the entirety; or
(4) in any other real property tenancy relationship recognizedunder the law of the state.
As added by P.L.2-2002, SEC.10.
IC 32-25-4-3
Common areas and facilities; undivided interest; repairs
Sec. 3. (a) Each condominium unit owner is entitled to anundivided interest in the common areas and facilities as designatedin the declaration. Except as provided in subsection (b), theundivided interest must be expressed as a percentage interest basedon:
(1) the size of the unit in relation to the size of all units in thecondominium;
(2) the value of each condominium unit in relation to the valueof all condominium units in the condominium; or
(3) the assignment of an equal percentage undivided interest to
each condominium unit.
An undivided interest allocated to each condominium unit inaccordance with this subsection must be indicated in a schedule ofundivided interests in the declaration. However, if the declarationdoes not specify the method of allocating the percentage undividedinterests, an equal percentage undivided interest applies to eachcondominium unit. The total undivided interests allocated inaccordance with subdivision (1) or (2) must equal one hundredpercent (100%).
(b) With respect to an expandable condominium, the declarationmay allocate undivided interests in the common area on the basis ofvalue if:
(1) the declaration prohibits the creation of any condominiumunits not substantially identical to the condominium unitsdepicted on the recorded plans of the declaration; or
(2) the declaration:
(A) prohibits the creation of any condominium units notdescribed in the initial declaration; and
(B) contains a statement on the value to be assigned to eachcondominium unit created after the date of the declaration.
(c) Interests in the common areas may not be allocated to anycondominium units to be created within any additional land until theplats and plans and supplemental declaration depicting thecondominium units to be created are recorded. Simultaneously withthe recording of the plats and plans for the condominium units to becreated, the declarant must execute and record an amendment to theinitial declaration reallocating undivided interests in the commonareas so that the future condominium units depicted on the plats andplans will be allocated undivided interests in the common areas onthe same basis as the condominium units depicted in the priorrecorded plats and plans.
(d) Except as provided in section 3.5 of this chapter and inIC 32-25-8-3, the undivided interest of the owner of thecondominium unit in the common areas and facilities, as expressedin the declaration, is permanent and may not be altered without theconsent of the co-owners. A consent to alteration must be stated inan amended declaration, and the amended declaration must berecorded. The undivided interest may not be transferred,encumbered, disposed of, or separated from the condominium unit towhich it appertains, and any purported transfer, encumbrance, orother disposition is void. The undivided interest is considered to beconveyed or encumbered with the condominium unit to which itappertains even though the undivided interest is not expresslymentioned or described in the conveyance or other instrument.
(e) The common areas and facilities shall remain undivided. Acondominium unit owner or any other person may bring an action forpartition or division of any part of the common areas and facilities ifthe property has been removed from this chapter as provided inIC 32-25-8-12 and IC 32-25-8-16. Any covenant to the contrary isvoid. (f) Each condominium unit owner:
(1) may use the common areas and facilities in accordance withthe purpose for which the common areas and facilities wereintended; and
(2) may not, in the owner's use of the common areas andfacilities, hinder or encroach upon the lawful rights of the otherco-owners.
(g) The:
(1) necessary work of:
(A) maintenance;
(B) repair; and
(C) replacement;
of the common areas and facilities; and
(2) making of any additions or improvements to the commonareas and facilities;
may be carried out only as provided in this chapter and in the bylaws.
(h) The association of condominium unit owners has theirrevocable right, to be exercised by the manager or board ofdirectors, to have access to each condominium unit from time to timeduring reasonable hours as is necessary for:
(1) the maintenance, repair, or replacement of any of thecommon areas and facilities:
(A) in the condominium unit; or
(B) accessible from the condominium unit; or
(2) making emergency repairs in the condominium unitnecessary to prevent damage to:
(A) the common areas and facilities; or
(B) another condominium unit.
As added by P.L.2-2002, SEC.10. Amended by P.L.1-2003, SEC.84;P.L.181-2007, SEC.1.
IC 32-25-4-3.5
Conveyance or encumberance of common areas and facilities
Sec. 3.5. (a) This section applies only to a condominium locatedon the shore of a lake located in a township with a population ofmore than three thousand one hundred (3,100) but less than threethousand eight hundred (3,800) located in a county having apopulation of more than forty-five thousand (45,000) but less thanforty-five thousand nine hundred (45,900).
(b) Except as otherwise provided in a statement described in:
(1) IC 32-25-7-1(a)(10) and included in:
(A) the declaration; or
(B) an amendment to the declaration, if the amendment isapproved by at least ninety-five percent (95%) of co-owners;or
(2) IC 32-25-8-2(12) and included in:
(A) the bylaws; or
(B) an amendment to the bylaws, if the amendment isapproved by the percentage of votes set forth in the bylawsunder IC 32-25-8-2(11);part or all of the common areas and facilities of a condominium maybe conveyed or subjected to a security interest by the association ofco-owners if at least ninety-five percent (95%) of the co-owners,including at least ninety-five percent (95%) of the co-owners ofcondominium units not owned by the declarant, agree to the action.However, if the common areas and facilities proposed to beconveyed or encumbered under this section include any limitedcommon areas and facilities, all the owners of the limited commonareas and facilities to be conveyed or encumbered must agree to theconveyance or encumbrance.
(c) An agreement to convey or encumber common areas andfacilities under this section must be evidenced by an agreement:
(1) executed in the same manner as a deed or any otherinstrument recognized by the state for the conveyance ortransfer of interests in title; and
(2) signed by:
(A) at least ninety-five percent (95%) of the co-owners, asrequired by this section; or
(B) another percentage of the co-owners specified in astatement described in subsection (b)(1) or (b)(2).
An agreement under this subsection is effective upon being recorded.
(d) Proceeds from the conveyance or encumbrance of commonareas and facilities under this section shall be distributed toco-owners as common profits under IC 32-25-8-6. However, if thecommon areas and facilities conveyed or encumbered under thissection include limited common areas and facilities, proceeds fromthe conveyance or encumbrance of the limited common areas andfacilities shall be distributed to the owners of the limited commonareas and facilities according to the percentage of the owners'undivided interest in the limited common areas and facilities.
(e) A conveyance or encumbrance of common areas and facilitiesnot made in accordance with:
(1) this section; or
(2) a statement described in subsection (b)(1) or (b)(2);
is void.
As added by P.L.181-2007, SEC.2.
IC 32-25-4-4
Contributions for expenses
Sec. 4. (a) Except as provided in subsection (d) or (e), theco-owners are bound to contribute pro rata, in the percentagescomputed under section 3 of this chapter, toward:
(1) the expenses of administration and of maintenance andrepair of the general common areas and facilities and, in theproper case, of the limited common areas and facilities of thebuilding; and
(2) any other expense lawfully agreed upon.
(b) A co-owner may not exempt the co-owner from contributingtoward the expenses referred to in subsection (a) by:
(1) waiver of the use or enjoyment of the common areas and
facilities; or
(2) abandonment of the condominium unit belonging to theco-owner.
(c) All sums assessed by the association of co-owners shall beestablished by using generally accepted accounting principles appliedon a consistent basis and shall include the establishment andmaintenance of a replacement reserve fund. The replacement reservefund may be used for capital expenditures and replacement andrepair of the common areas and facilities and may not be used forusual and ordinary repair expenses of the common areas andfacilities. The fund shall be:
(1) maintained in a separate interest bearing account with abank or savings association authorized to conduct business inthe county in which the condominium is established; or
(2) invested in the same manner and in the same types ofinvestments in which the funds of a political subdivision maybe invested:
(A) under IC 5-13-9; or
(B) as otherwise provided by law.
Assessments collected for contributions to the fund are not subjectto adjusted gross income tax.
(d) If permitted by the declaration, the declarant or a developer (ora successor in interest of either) that is a co-owner of unoccupiedcondominium units offered for the first time for sale is excused fromcontributing toward the expenses referred to in subsection (a) forthose units for a period that:
(1) is stated in the declaration;
(2) begins on the day that the declaration is recorded; and
(3) terminates no later than the first day of the twenty-fourthcalendar month following the month in which the closing of thesale of the first condominium unit occurs.
However, if the expenses referred to in subsection (a) incurred by thedeclarant, developer, or successor during the period referred to inthis subsection exceed the amount assessed against the otherco-owners, the declarant, developer, or successor shall pay theamount by which the expenses incurred by the declarant, developer,or successor exceed the expenses assessed against the otherco-owners.
(e) If the declaration does not contain the provisions referred to insubsection (d), the declarant or a developer (or a successor in interestof either) that is a co-owner of unoccupied condominium unitsoffered for the first time for sale is excused from contributing towardthe expenses referred to in subsection (a) for those units for a statedperiod if the declarant, developer, or successor:
(1) has guaranteed to each purchaser in the purchase contract,the declaration, or the prospectus, or by an agreement with amajority of the other co-owners that the assessment for thoseexpenses will not increase over a stated amount during thestated period; and
(2) has obligated itself to pay the amount by which those
expenses incurred during the stated period exceed theassessments at the guaranteed level under subdivision (1)receivable during the stated period from the other co-owners.
As added by P.L.2-2002, SEC.10. Amended by P.L.192-2002(ss),SEC.172.