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 bybylaws. A true copy of the bylaws shall be annexed to and made apart of the declaration. A modification of or amendment to thebylaws is valid only if:
(1) the modification or amendment is set forth in an amendmentto 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) ofthe directors annually;
(D) the powers and duties of the board, including whetherthe board may engage the services of a manager or managingagent;
(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 thepercentage, if other than a majority of co-owners, thatconstitutes a quorum.
(3) The election from among the board of directors of apresident, 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 bookin which resolutions shall be recorded.
(5) The election of a treasurer, who shall keep the financialrecords and books of account.
(6) The maintenance, repair, and replacement of the commonareas and facilities and payments for that maintenance, repair,and replacement, including the method of approving paymentvouchers.
(7) The manner of collecting from each condominium owner theowner's share of the common expenses.
(8) The designation and removal of personnel necessary for themaintenance, repair, and replacement of the common areas andfacilities.
(9) The method of adopting and of amending administrativerules governing the details of the operation and use of thecommon areas and facilities. (10) The restrictions on and requirements respecting the use andmaintenance of the condominium units and the use of thecommon areas and facilities that are:
(A) not set forth in the declaration; and
(B) designed to prevent unreasonable interference with theuse of their respective units and of the common areas andfacilities by the several co-owners.
(11) The percentage of votes required to amend the bylaws.
(12) This subdivision applies only to a condominium located onthe shore of a lake located in a township with a population ofmore than three thousand one hundred (3,100) but less thanthree thousand eight hundred (3,800) located in a county havinga population of more than forty-five thousand (45,000) but lessthan forty-five thousand nine hundred (45,900). A statement ofthe percentage of votes by the condominium unit ownersrequired to convey or encumber part or all of the common areasand facilities. A statement under this subdivision may not allowless than ninety-five percent (95%) of the condominium unitowners, or less than ninety-five percent (95%) of the owners ofcondominium units not owned by the declarant, to convey orencumber part or all of the common areas and facilities. If thebylaws do not include a statement under this subdivision,IC 32-25-4-3.5 applies.
(13) Other provisions consistent with this article considerednecessary 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 condominiumunit.
(b) A declaration and any amendment to a declaration are validonly if the declaration or amendment is recorded.
(c) All of the laws of the state applicable to the recording ofinstruments affecting real property apply to the recording ofinstruments affecting any interest in a condominium unit.
(d) In addition to the records and indexes required to bemaintained by the recording officer, the recording officer shallmaintain an index or indexes in which:
(1) the record of each declaration contains a reference to therecord of each conveyance of a condominium unit affected bythe declaration; and
(2) the record of each conveyance of a condominium unitcontains a reference to the declaration of the building of whichthe 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 instrumentsprovide 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 designateda condominium unit by the condominium instruments becomespart of the common areas and facilities; and
(2) the declarant ceases to have any rights to the item referredto in subdivision (1) unless the item is removed promptly fromthe condominium real estate under a right reserved in thecondominium 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 orhereditaments
Sec. 5. A condominium unit owner may not make an alteration orstructural 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 unanimousconsent 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 theowners' 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 subsectionmay not be assessed and collected on the building or property as awhole.
(b) Each condominium unit shall be carried on the tax books as aseparate and distinct entity for the purpose of taxes, assessments, andother charges.
(c) A forfeiture or sale of the building or property as a whole fordelinquent taxes, assessments, or charges may not divest or affect thetitle to a condominium unit if taxes, assessments, and charges on thecondominium 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 andexpenditures affecting the common areas and facilities, specifyingand itemizing:
(1) the maintenance and repair expenses of the common areasand facilities; and
(2) any other expenses incurred.
(b) The records and the vouchers authorizing the payments shallbe available for examination by the co-owners at convenient hoursof 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 commonexpenses, affording fire and extended coverage in an amountconsonant with the full replacement value of the improvementthat in whole or in part comprises the common areas andfacilities; 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 ofdirectors 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 oremployees 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 otherportions of the condominium.
(c) Other policies required by the condominium instruments maybe obtained by the co-owners through the association, including:
(1) worker's compensation insurance;
(2) liability insurance on motor vehicles owned by theassociation;
(3) specialized policies covering land or improvements onwhich 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 onbehalf of the association of co-owners, the officer required to sendnotices of meetings of the association of co-owners shall promptlyfurnish to each co-owner or mortgagee whose interest may beaffected 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, otherthan complete destruction of all buildings containing thecondominium units:
(1) the improvements shall be reconstructed; and
(2) the insurance proceeds shall be applied to reconstruct theimprovements.
(b) In the event of complete destruction of all of the buildingscontaining condominium units:
(1) the buildings shall not be reconstructed, except as providedin subdivision (2), and the insurance proceeds, if any, shall bedivided among the co-owners:
(A) in the percentage by which each owns an undividedinterest in the common areas and facilities; or
(B) proportionately according to the fair market value ofeach condominium unit immediately before the casualty ascompared with the fair market value of all othercondominium units;
as specified in the bylaws of the condominium; and
(2) the property shall be considered as to be removed from thecondominium under section 16 of this chapter, unless by a voteof two-thirds (2/3) of all of the co-owners a decision is made torebuild the building.
(c) If a decision is made under subsection (b)(2) to rebuild thebuilding, the insurance proceeds shall be applied, and any excess ofconstruction costs over insurance proceeds shall be contributed as
provided in this section in the event of less than total destruction ofthe buildings.
(d) A determination of total destruction of the buildingscontaining condominium units shall be made by a vote of two-thirds(2/3) of all co-owners at a special meeting of the association ofco-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 ofrepair 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 orreconstruction in the percentage by which a condominium unit ownerowns an undivided interest in the common areas and facilities asexpressed 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 thecontribution 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 ordisaster has occurred:
(1) The property is considered to be owned in common by thecondominium unit owners.
(2) The undivided interest in the property owned in commonthat appertains to each condominium unit owner is thepercentage of undivided interest previously owned by the ownerin the common areas and facilities.
(3) Any liens affecting any of the condominium units areconsidered to be transferred in accordance with the existingpriorities to the percentage of the undivided interest of thecondominium unit owner in the property.
(4) The property is subject to an action for partition at the suitof any condominium unit owner, in which event the netproceeds of sale, together with the net proceeds of the insuranceon the property, if any:
(A) are considered as one (1) fund; and
(B) are divided among all the condominium unit owners ina percentage equal to the percentage of undivided interestowned by each owner in the property, after first paying outof the respective shares of the condominium unit owners, to
the extent sufficient for the purpose, all liens on theundivided interest in the property owned by eachcondominium 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 declarantmay add additional real estate to an expandable condominium if anamendment to the declaration required by subsection (b) is executedin the manner described in section 3 of this chapter. The expansionis effective when the instruments required by subsection (b) arerecorded.
(b) In expanding the condominium, the declarant shall:
(1) prepare, execute, and record amendments to thecondominium instruments; and
(2) record new plats and plans under IC 32-25-7-1 andIC 32-25-7-4.
The amendment to the declaration shall assign an identifying numberto each condominium unit within the real estate being added andshall reallocate undivided interests in the common areas and facilitiesunder 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 contractablecondominium unless the withdrawal is prohibited by subsection (c).The contraction is effective when the instruments required bysubsection (b) are recorded.
(b) In contracting the condominium, the declarant shall prepare,execute, and record an amendment to the declaration andcondominium instruments:
(1) containing a legally sufficient description of the land beingwithdrawn; and
(2) stating the fact of withdrawal.
(c) If a portion of the withdrawable land was described underIC 32-25-7-3(6) and IC 32-25-7-3(7), that portion may not bewithdrawn if any person other than the declarant owns acondominium unit situated on that portion of the withdrawable land.If that portion of the withdrawable land was not described underIC 32-25-7-3(6) and IC 32-25-7-3(7), none of the withdrawable landmay be withdrawn if any person other than the declarant owns acondominium 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 notexpand the condominium, the declarant shall:
(1) make a full disclosure of that option to every prospectivebuyer in writing before the buyer enters an agreement topurchase a condominium unit; and
(2) obtain and retain an instrument acknowledging receipt ofthat 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 thisarticle by a recorded removal instrument if the holders of all liensaffecting 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 transferredto the percentage of the undivided interest of the condominiumunit owner in the property as provided in this section.
(b) If it is determined under section 10 of this chapter that all ofthe buildings containing condominium units have been totallydestroyed:
(1) the property is considered removed from this article; and
(2) an instrument reciting the removal under section 10 of thischapter shall be recorded and executed by the association ofco-owners.
(c) At the time of recording under subsection (b)(2), the propertyis removed from this article.
(d) Upon removal of the property from this article, the property isconsidered to be owned in common by the condominium unitowners. The undivided interest in the property owned in commonthat appertains to each condominium unit owner is the percentage ofundivided interest previously owned by the owner in the commonareas and facilities.
(e) Under the circumstances described in subsection (a) or insubsections (b) through (d), the property is subject to an action forpartition at the suit of any condominium unit owner, in which eventthe net proceeds of sale, together with the net proceeds of theinsurance on the property, if any:
(1) are considered as one (1) fund; and
(2) are divided among all the condominium unit owners in apercentage equal to the percentage of undivided interest ownedby each owner in the property, after first paying out of therespective shares of the condominium unit owners, to the extentsufficient for the purpose, all liens on the undivided interest inthe property owned by each condominium unit owner.
(f) A removal under this section does not bar the subsequentresubmission of the property to this article.
As added by P.L.2-2002, SEC.10.