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 32-24-1applies 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 purposenecessary to carry out this article, including the following:
(1) To locate, relocate, construct, reconstruct, repair, ormaintain a state highway, including area for:
(A) the placement of a utility facility within the right-of-wayof the state highway system; or
(B) the relocation of a utility facility within the right-of-wayof the state highway system due to interference with ahighway improvement project.
(2) To widen or straighten a highway.
(3) To clear and remove obstructions to vision at crossings andcurves.
(4) To construct weigh stations and rest areas.
(5) To provide scenic easements and other areas necessary tocooperate with the federal government or carry out a federallaw.
(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 lesserinterest 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 toacquire real property, easements in real property, or rights inreal property;
the department may prepare a metes and bounds or other descriptionof the property or rights to be acquired. The description shall be filedin the office of the recorder in the county in which the real propertyis 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 ofproperty described in section 4 of this chapter that the departmentintends to acquire the real property or rights for highway purposes.The notice may be served in person or sent by certified mail to theowners of the property at the address shown on the tax records of thecounty.
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 chaptermay not erect improvements on the real property described,subdivide the property, or make any changes in the use of theproperty that would affect its use for highway purposes, unless theowner 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 stateaction
Sec. 7. Whenever the department receives notice under section 6of this chapter, the department has ninety (90) days to purchase thereal property affected or commence condemnation proceedings. If atthe end of ninety (90) days the department has not entered into acontract for the purchase of the real property or commencedcondemnation proceedings, the owner may proceed with theimprovement, 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 lieswithin a political subdivision that has an ordinance regulatingproperty use or requiring a building permit, the owner of the propertyshall give written notice to the department of an application orpetition for a variance or building permit. The owner shall givenotice by sending a copy of the petition or application to thedepartment by certified mail not later than ten (10) days before ahearing is held by local authorities on the petition or application. Thedepartment may remonstrate and be heard at a hearing concerning theproperty 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, oreasements described in section 4 of this chapter within three (3)years after filing the description with the county recorder, thedepartment loses the right to receive notice of improvements,subdivisions, or changes on the property that the department acquiredby 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 byagreement 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 listof 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 departmentshall be attached to each voucher submitted for payment under thischapter. The auditor of state may not draw and pay the voucherunless 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 institutedconcerning real property, the department shall certify to the auditorof state that the voucher submitted is for escrow and is to be paid tothe clerk of the circuit court. The voucher shall be in the amountdetermined and filed with the clerk of the circuit court. The paymentshall be for the use and benefit of the owner of the property soughtto 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 infee simple by the department will not be needed for a purposedescribed in section 2 of this chapter, the commissioner may, withthe approval of the budget agency, issue an order describing thesurplus property and offering the surplus property for sale at orabove its fair market value as determined by appraisers of thedepartment. The department may combine or divide parcels ofsurplus 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 toabutting property owner
Sec. 14. If a property found to be surplus under section 13 of thischapter abuts a parcel of land from which the surplus property wasseparated and acquired by the department, the surplus property mustfirst be offered for sale to the owner of the abutting property. Anoffer under this section shall be made by certified mail to the lastknown address of the owner. If the owner accepts an offer under thissection, the surplus property shall be conveyed to the owner byquitclaim deed upon payment to the department of not less than thefair market value of the property as determined by the appraisers ofthe 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 14of this chapter fails to accept the offer within thirty (30) days, thedepartment 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 otherreal property belonging to the state is sold at no less than itsappraised value. The proceeds of the sale shall be credited to thedepartment. A sale under this section is subject to the approval of thegovernor.
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 besurplus under section 13 of this chapter does not exceed fourthousand dollars ($4,000), the department may sell the surplusproperty without advertising or competitive bids for not less than thefull appraised value of the surplus property upon approval by thecommissioner 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 thedepartment has rights or an easement, will not be needed, the
department may exchange the parcel of property, the rights in theproperty, or easement in the property for a parcel of property, rightsin a property, or an easement in a property, which the departmentdetermines is needed.
As added by P.L.18-1990, SEC.216.
IC 8-23-7-18
Exchange of lands, rights, and easements; valuation; payments fordifferences in value
Sec. 18. Before making an exchange under section 17 of thischapter, both parcels of real property shall be appraised. Anydifference in value between the two parcels of property shall be paidor received by the department. A sum received under this sectionshall be deposited with the treasurer of state and credited to the statehighway 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 chapterincludes improvements to be constructed on either parcel of realproperty, the department shall enter into an agreement with theowner of the parcel of property that the department will receive. Anagreement under this section must include the following:
(1) The appraisal required under section 18 of this chapter mustinclude the value of improvements constructed or to beconstructed on the property.
(2) The construction contract for improvements under thissection must be guaranteed by a construction or performancebond issued by a surety company approved by the department.The department:
(A) shall require a performance bond from a contractor fora project if the estimated cost of the project is more than twohundred thousand dollars ($200,000); and
(B) may require a performance bond from a contractor for aproject if the estimated cost of the project is not more thantwo hundred thousand dollars ($200,000).
(3) The plans and specifications for improvements under thissection must be certified by a licensed architect or engineer.
(b) The department must approve in writing the constructioncontract, bond, plans, and specifications for the improvements beforeentering 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 constructioncontracts, bonds, or plans to exchange agreements
Sec. 20. The construction contract, bond, plans, and specificationsrequired under section 19 of this chapter shall be attached to the
exchange agreement for the parcels of property and incorporated byreference 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 completionrequirement
Sec. 21. An exchange agreement under section 19 of this chapteris not completed until the improvements specified in the agreementhave been constructed in accordance with the plans andspecifications approved by the department. The department may notpay or receive any difference in value between the real propertiesexchanged 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, afterissuing an order and receiving the governor's approval, determinethat a state highway should become a tollway. After the orderbecomes effective, the department shall maintain and operate thetollway and levy and collect tolls as provided in IC 8-15-3 or enterinto a public-private agreement with an operator with respect to thetollway under IC 8-15.7. Before issuing an order under this section,the department shall submit to the governor a plan to bring thetollway to the current design standards of the department for newstate highways within a specified period. The specified period maynot 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 underthis section unless the general assembly enacts a statute authorizingthat activity:
(1) Determine that a highway, other than:
(A) Interstate Highway 69 between Interstate Highway 64and a city having a population of more than eleven thousandfive hundred (11,500) but less than eleven thousand sevenhundred forty (11,740);
(B) the Illiana Expressway, a limited access facilityconnecting Interstate Highway 65 in northwestern Indianawith an interstate highway in Illinois; or
(C) a project that is located within a metropolitan planningarea (as defined by 23 U.S.C. 134) and that connects thestate of Indiana with the commonwealth of Kentucky.
should become a tollway.
(2) Carry out construction for Interstate Highway 69 in atownship having a population of more than seventy-fivethousand (75,000) and less than ninety-three thousand fivehundred (93,500).
(3) Impose tolls on motor vehicles for use of the part of aninterstate 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, afterissuing an order and receiving the governor's approval, determinethat a state highway should become a toll road. An order under thissection does not become effective unless the authority adopts aresolution to accept the designated state highway, or part of thehighway, as a toll road project under the conditions contained in theorder. An order issued by the department under this section must setforth the conditions upon which the transfer of the state highway, orpart of the highway, to the authority must occur, including thefollowing:
(1) The consideration, if any, to be paid by the authority to thedepartment.
(2) A requirement that the authority:
(A) enter into a contract or lease with the department withrespect to the toll road project under IC 8-9.5-8-7 orIC 8-9.5-8-8; or
(B) enter into a public-private agreement with an operatorwith respect to the toll road under IC 8-15.5.
(b) To complete a transfer under this section, the departmentmust, with the governor's approval, execute a certificate describingthe real and personal property constituting or to be transferred withthe state highway that is to become a toll road project. Upon deliveryof the certificate to the authority, the real and personal propertydescribed in the certificate is under the jurisdiction and control of theauthority.
(c) Notwithstanding any other law, neither the authority nor anoperator may carry out any of the following activities under thissection unless the general assembly enacts a statute authorizing thatactivity:
(1) Carrying out construction for Interstate Highway 69 in atownship having a population of more than seventy-fivethousand (75,000) and less than ninety-three thousand fivehundred (93,500).
(2) Imposing tolls on motor vehicles for use of the part of aninterstate highway that connects a consolidated city and a cityhaving 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 ortoll road
Sec. 24. A designated part of a state highway may become atollway under the jurisdiction of the department under section 22 ofthis chapter and another designated part of the same state highwaymay become a toll road project under the jurisdiction of the authorityunder section 23 of this chapter. If a tollway and a toll road arecontiguous parts of the same state highway, the contract or leaseentered into under section 23 of this chapter may provide forcoordination in the operation and maintenance of the tollway and thetoll road project, including joint toll collection facilities andagreement 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; effectivenessof orders
Sec. 25. An order issued under section 22 or 23 of this chapterdoes not become effective until:
(1) all conditions in the order are satisfied; and
(2) all conditions in an agreement relating to a state highwaythat is the subject of an order under section 22 or 23 of thischapter entered into by the Secretary, acting by and through thefederal highway administrator, and the state, acting by andthrough 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 thedepartment engaged in a survey or investigation authorized by thecommissioner or the commissioner's designee, including a survey orinvestigation for purposes of IC 8-23-5-9, may enter upon, over, orunder any land or property within Indiana to conduct the survey orinvestigation by manual or mechanical means, which include thefollowing:
(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 orinvestigation.
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 ofthe department enters upon, over, or under any land or water undersection 26 of this chapter, the occupant of the land or water shall benotified in writing by first class United States mail of the entry notlater than five (5) days before the date of entry. The employee orrepresentative of the department shall present written identificationor authorization to the occupant of the land or water before enteringthe land or water.
(b) At the same time and in the same manner as the noticerequired under subsection (a), the department shall notify theoccupant and the record owner of the land or property of thefollowing:
(1) With respect to damage that occurs to the land or propertyas a result of entry upon, over, or under the land or property asset forth in section 26 of this chapter:
(A) a description of the aggrieved party's right tocompensation for the damage from the department; and
(B) the procedure that the aggrieved party must follow toobtain the compensation.
(2) The name, mailing address, and telephone number of anindividual or office within the department to which anaggrieved party may direct questions concerning the rights andprocedures 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 damageoccurs to the land or water as a result of the entry or work performedduring the entry, the department shall compensate the aggrievedparty. If the aggrieved party is not satisfied with the compensationdetermined by the department, the amount of damages shall beassessed by the county agricultural extension educator of the countyin which the land or water is located and two (2) disinterestedresidents of the county, one (1) appointed by the aggrieved party andone (1) appointed by the department. A written report of theassessment of damages shall be mailed to the aggrieved party and thedepartment by first class United States mail. If either the departmentor the aggrieved party is not satisfied with the assessment ofdamages, either or both may file a petition, not later than fifteen (15)days after receiving the report, in the circuit or superior court of thecounty in which the land or water is located. The department shallpay any compensation awarded to an aggrieved party under thissection:
(1) not more than sixty (60) days after the date on which theparties 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, oreasements under this chapter take precedence over all cases notinvolving 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 toacquire lands by purchase or by the exercise of the right of eminentdomain may not be construed to prohibit a municipality from:
(1) acquiring at its own expense, either by grant, purchase, orcondemnation, the necessary right-of-way required by thedepartment for the maintenance, construction, or improvementof a street of the municipality as a part of a highway under thecontrol of the department; or
(2) entering into an agreement to pay all or any part of the costsof 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 ofa state highway, a legal description of all rights-of-way andeasements, including the area of the land acquired, shall be filed bythe department in the office of the recorder in the county in whichthe real property is located. The description shall be recorded in thedeed records of the county. No fee may be charged for filing andrecording the description. The department shall also file thedescription with the county auditor.
(b) Real property and interests in real property acquired forpermanent highway purposes are exempt from taxation from the dateof acquisition, provided that all taxes, interest, and penalties recordedon the property tax duplicates have been paid. Where real propertyor interests in real property are acquired after the assessment date ofany year but before December 31, the taxes on the property in theensuing year are not a lien on the property and shall be removed fromthe tax duplicates by the county auditor. A property owner who onor after March 1, 1965, conveyed real property or rights in realproperty to the department and who after July 8, 1965, is assessedtaxes upon the property or rights conveyed and who pays the taxesby reason of the failure of the department to properly record theinterest in the real property conveyed with the county auditor andrecorder 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 othertitle papers
Sec. 32. All abstracts of title, policies of title insurance, and othertitle papers shall be kept and preserved permanently by thedepartment.
As added by P.L.18-1990, SEC.216.