IC 36-1-11
Chapter 11. Disposal of Real or Personal Property
IC 36-1-11-1 Application of chapter
Sec. 1. (a) Except as provided in subsection (b), this chapter
applies to the disposal of property by:
(1) political subdivisions; and
(2) their agencies.
(b) This chapter does not apply to the following:
(1) The disposal of property under an urban homesteading
program under IC 36-7-17.
(2) The lease of school buildings under IC 20-47.
(3) The sale of land to a lessor in a lease-purchase contract
under IC 36-1-10.
(4) The disposal of property by a redevelopment commission
established under IC 36-7.
(5) The leasing of property by a board of aviation
commissioners established under IC 8-22-2 or an airport
authority established under IC 8-22-3.
(6) The disposal of a municipally owned utility under IC 8-1.5.
(7) The sale or lease of property by a unit to an Indiana
nonprofit corporation organized for educational, literary,
scientific, religious, or charitable purposes that is exempt from
federal income taxation under Section 501 of the Internal
Revenue Code or the sale or reletting of that property by the
nonprofit corporation.
(8) The disposal of surplus property by a hospital established
and operated under IC 16-22-1 through IC 16-22-5, IC 16-22-8,
IC 16-23-1, or IC 16-24-1.
(9) The sale or lease of property acquired under IC 36-7-13 for
industrial development.
(10) The sale, lease, or disposal of property by a local hospital
authority under IC 5-1-4.
(11) The sale or other disposition of property by a county or
municipality to finance housing under IC 5-20-2.
(12) The disposition of property by a soil and water
conservation district under IC 14-32.
(13) The disposal of surplus property by the health and hospital
corporation established and operated under IC 16-22-8.
(14) The disposal of personal property by a library board under
IC 36-12-3-5(c).
(15) The sale or disposal of property by the historic
preservation commission under IC 36-7-11.1.
(16) The disposal of an interest in property by a housing
authority under IC 36-7-18.
(17) The disposal of property under IC 36-9-37-26.
(18) The disposal of property used for park purposes under
IC 36-10-7-8.
(19) The disposal of textbooks that will no longer be used by
school corporations under IC 20-26-12.
(20) The disposal of residential structures or improvements by
a municipal corporation without consideration to:
(A) a governmental entity; or
(B) a nonprofit corporation that is organized to expand the
supply or sustain the existing supply of good quality,
affordable housing for residents of Indiana having low or
moderate incomes.
(21) The disposal of historic property without consideration to
a nonprofit corporation whose charter or articles of
incorporation allows the corporation to take action for the
preservation of historic property. As used in this subdivision,
"historic property" means property that is:
(A) listed on the National Register of Historic Places; or
(B) eligible for listing on the National Register of Historic
Places, as determined by the division of historic preservation
and archeology of the department of natural resources.
(22) The disposal of real property without consideration to:
(A) a governmental agency; or
(B) a nonprofit corporation that exists for the primary
purpose of enhancing the environment;
when the property is to be used for compliance with a permit or
an order issued by a federal or state regulatory agency to
mitigate an adverse environmental impact.
(23) The disposal of property to a person under an agreement
between the person and a political subdivision or an agency of
a political subdivision under IC 5-23.
(24) The disposal of residential real property pursuant to a
federal aviation regulation (14 CFR 150) Airport Noise
Compatibility Planning Program as approved by the Federal
Aviation Administration. As added by Acts 1981, P.L.57, SEC.37. Amended by Acts 1982,
P.L.208, SEC.1; P.L.16-1983, SEC.21; P.L.182-1985, SEC.15;
P.L.214-1986, SEC.1; P.L.2-1987, SEC.49; P.L.214-1989, SEC.5;
P.L.336-1989(ss), SEC.44; P.L.162-1991, SEC.4; P.L.2-1993,
SEC.198; P.L.98-1993, SEC.11; P.L.1-1994, SEC.172;
P.L.165-1994, SEC.1; P.L.1-1995, SEC.79; P.L.310-1995, SEC.1;
P.L.82-1995, SEC.7; P.L.49-1997, SEC.69; P.L.76-1998, SEC.1;
P.L.1-2005, SEC.234; P.L.184-2005, SEC.37; P.L.2-2006, SEC.188.
IC 36-1-11-2 Definitions
Sec. 2. The following definitions apply throughout this chapter:
(1) "Disposal" means sale, exchange, transfer, or lease of
property.
(2) "Disposing agent" means the board or officer of a political
subdivision or agency having the power to award contracts for
which public notice is required, with respect to property of the
political subdivision or agency.
(3) "Key number" has the meaning set forth in IC 6-1.1-1-8.5.
(4) "Operating agreement" has the meaning set forth in
IC 5-23-2-7.
(5) "Person" means any association, corporation, limited
liability company, fiduciary, individual, joint venture,
partnership, sole proprietorship, or any other legal entity.
(6) "Property" means all fixtures and real property to be
included in a disposal.
(7) "Tract" has the meaning set forth in IC 6-1.1-1-22.5. As added by Acts 1981, P.L.57, SEC.37. Amended by P.L.60-1988,
SEC.23; P.L.82-1995, SEC.8; P.L.49-1997, SEC.70.
IC 36-1-11-3 Approval
Sec. 3. (a) This section does not apply to the disposal of real
property under section 5, 5.5, 5.9, or 8 of this chapter.
(b) Disposal of real property under this chapter is subject to the
approval of:
(1) the executive of the political subdivision or agency; or
(2) the fiscal body of the political subdivision or agency, if
there is no executive.
The executive or fiscal body may not approve a disposal of property
without conducting a public hearing after giving notice under
IC 5-3-1. However, in a municipality the executive shall designate a
board or commission of the municipality to give notice, conduct the
hearing, and notify the executive of its recommendation.
(c) Except as provided in section 3.2 of this chapter, in addition,
the fiscal body of a unit must approve:
(1) every sale of real property having an appraised value of fifty
thousand dollars ($50,000) or more;
(2) every lease of real property for which the total annual rental
payments will be twenty-five thousand dollars ($25,000) or
more; and
(3) every transfer of real property under section 14 or 15 of this
chapter. As added by Acts 1981, P.L.57, SEC.37. Amended by Acts 1982,
P.L.208, SEC.2; P.L.331-1985, SEC.1; P.L.330-1985, SEC.3;
P.L.35-1990, SEC.43; P.L.82-1995, SEC.9; P.L.124-1998, SEC.11;
P.L.27-2008, SEC.1.
IC 36-1-11-3.1 Sale of residential real property; disapproval
Sec. 3.1. (a) In addition to any other reason for disapproving a
disposal of property under section 3 of this chapter, the executive of
a consolidated city may disapprove a sale of a tract of residential
property to any bidder who does not by affidavit declare that:
(1) the bidder will reside on that property for at least one (1)
year after the bidder obtains possession of it; and
(2) the bidder is eligible to purchase the property under section
16 of this chapter.
(b) When the executive exercises disapproval under this section,
the property may be sold to the highest bidder who also presents an
affidavit declaring that:
(1) the bidder will reside on that property for a one (1) year
period after the bidder obtains possession; and
(2) the bidder is eligible to purchase the property under section
16 of this chapter. As added by Acts 1981, P.L.306, SEC.1. Amended by P.L.60-1988,
SEC.24.
IC 36-1-11-3.2 Approval of sale, lease, or transfer of real property in certain cities
Sec. 3.2. (a) This section applies to a city having a population of:
(1) more than ninety thousand (90,000) but less than one
hundred five thousand (105,000);
(2) more than thirty-two thousand (32,000) but less than
thirty-two thousand eight hundred (32,800); or
(3) more than seventy-five thousand (75,000) but less than
ninety thousand (90,000).
(b) Notwithstanding section 3(c) of this chapter, the fiscal body
of a city must approve:
(1) every sale of real property having an appraised value of ten
thousand dollars ($10,000) or more;
(2) every lease of real property for which the total annual rental
payments will be five thousand dollars ($5,000) or more; and
(3) every transfer of real property under section 14 or 15 of this
chapter. As added by P.L.124-1998, SEC.12. Amended by P.L.170-2002,
SEC.138.
IC 36-1-11-4 Sale or transfer of real property; procedure
Sec. 4. (a) A disposing agent who wants to sell or transfer real
property must comply with this section, except as permitted by
section 4.1, 4.2, 5, 5.5, 5.7, 5.9, 8, 14, or 15 of this chapter.
(b) The disposing agent shall first have the property appraised by
two (2) appraisers. The appraisers must be:
(1) professionally engaged in making appraisals;
(2) licensed under IC 25-34.1; or
(3) employees of the political subdivision familiar with the
value of the property.
The appraisers shall make a joint appraisal of the property.
(c) After the property is appraised, the disposing agent shall
publish a notice in accordance with IC 5-3-1 setting forth the terms
and conditions of the sale and, when subsection (e) is employed, may
engage an auctioneer licensed under IC 25-6.1 to advertise the sale
and to conduct a public auction. The advertising conducted by the
auctioneer is in addition to any other notice required by law and shall
include a detailed description of the property to be sold stating the
key numbers, if any, of the tracts within that property. If the
disposing agent determines that the best sale of the property can be
made by letting the bidders determine certain conditions of the sale
(such as required zoning or soil or drainage conditions) as a
prerequisite to purchasing the property, the disposing agent may
permit the bidders to specify those conditions. The notice must state
the following:
(1) Bids will be received beginning on a specific date.
(2) The sale will continue from day to day for a period
determined by the disposing agent of not more than sixty (60)
days.
(3) The property may not be sold to a person who is ineligible
under section 16 of this chapter.
(4) A bid submitted by a trust (as defined in IC 30-4-1-1(a))
must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
(d) A bid must be open to public inspection. A bidder may raise
the bidder's bid, and subject to subsection (e), that raise takes effect
after the board has given written notice of that raise to the other
bidders.
(e) The disposing agent may also engage an auctioneer licensed
under IC 25-6.1 to conduct a sale by public auction. The auction may
be conducted either at the time for beginning the sale in accordance
with the public notice or after the beginning of the sale. The
disposing agent shall give each bidder who has submitted a bid
written notice of the time and place of the auction.
(f) The disposing agent may, before expiration of the time set out
in the notice, sell the property to the highest and best bidder. The
highest and best bidder must have complied with any requirement
under subsection (c)(4). However, the disposing agent may sell the
property for less than ninety percent (90%) of the appraised value of
the tracts only after having an additional notice of the sale published
in accordance with subsection (c). The disposing agent may reject all
bids.
(g) If the disposing agent determines that, in the exercise of good
business judgment, the disposing agent should hire a broker or
auctioneer to sell the property, the disposing agent may do so and
pay the broker or auctioneer a reasonable compensation out of the
gross proceeds of the sale. However, the disposing agent must still
comply with the procedural requirements of this section. The
disposing agent may hire one (1) of the appraisers as the broker or
auctioneer. As added by Acts 1981, P.L.57, SEC.37. Amended by Acts 1982,
P.L.208, SEC.3; P.L.32-1983, SEC.10; P.L.331-1985, SEC.2;
P.L.330-1985, SEC.4; P.L.60-1988, SEC.25; P.L.336-1989(ss),
SEC.45; P.L.165-1994, SEC.2; P.L.188-2007, SEC.2; P.L.27-2008,
SEC.2.
IC 36-1-11-4.1 Sale or transfer of real property, including provision for leaseback;
notice; bids
Sec. 4.1. (a) This section applies to a disposing agent who wants
to sell or transfer real property, and as a condition of sale, includes
a provision for a leaseback or leaseback with option to repurchase.
(b) The disposing agent shall publish notice in accordance with
IC 5-3-1 setting forth the terms and conditions of the sale. The notice
must state the following:
(1) Bids will be received beginning on a specific date.
(2) The sale will continue from day to day for a period
determined by the disposing agent of not more than sixty (60)
days.
(3) The property may not be sold or transferred to a person who
is ineligible under section 16 of this chapter.
(4) A bid submitted by a trust (as defined in IC 30-4-1-1(a))
must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
(c) A bid must be open to public inspection.
(d) After the period for receiving bids has expired, a disposing
agent may sell the property to the highest and best eligible bidder.
The highest and best eligible bidder must have complied with any
requirement under subsection (b)(4).
(e) IC 36-1-10 does not apply to this section. As added by Acts 1982, P.L.208, SEC.4. Amended by P.L.60-1988,
SEC.26; P.L.336-1989(ss), SEC.46.
IC 36-1-11-4.2 Sale or transfer of real property not acquired through eminent
domain to promote an economic development project or facilitate
compatible land use planning
Sec. 4.2. (a) This section applies to a disposing agent who wants
to sell or transfer real property not acquired through eminent domain
procedures for any of the following purposes:
(1) To promote an economic development project.
(2) To facilitate compatible land use planning.
(b) The disposing agent shall first have the property appraised by
two (2) appraisers. The appraisers must be:
(1) professionally engaged in making appraisals;
(2) licensed under IC 25-34.1; or
(3) employees of the political subdivision familiar with the
value of the property.
The appraisers shall make a joint appraisal of the property.
(c) The disposing agent may:
(1) negotiate a sale or transfer; and
(2) dispose of the real property;
at a value that is not less than the appraised value determined under
subsection (b). As added by P.L.165-1994, SEC.3.
IC 36-1-11-5 Sale of real property having certain value or less; rights of abutting
landowners; procedures
Sec. 5. (a) As used in this section, "abutting landowner" means an
owner of property that:
(1) touches, borders on, or is contiguous to the property that is
the subject of sale; and
(2) does not constitute a:
(A) public easement; or
(B) public right-of-way.
(b) As used in this section, "offering price" means the appraised
value of real property plus all costs associated with the sale,
including:
(1) appraisal fees;
(2) title insurance;
(3) recording fees; and
(4) advertising costs.
(c) If the assessed value of a tract of real property to be sold is
less than fifteen thousand dollars ($15,000), based on the most recent
assessment of the tract or of the tract of which it was a part before it
was acquired, the disposing agent may proceed under this section.
(d) The disposing agent may determine that:
(1) the highest and best use of the tract is sale to an abutting
landowner;
(2) the cost to the public of maintaining the tract equals or
exceeds the estimated fair market value of the tract; or
(3) it is economically unjustifiable to sell the tract under section
4 of this chapter.
(e) Within ten (10) days after the disposing agent makes a
determination under subsection (d), the disposing agent shall publish
a notice in accordance with IC 5-3-1 identifying the tracts intended
for sale by legal description and, if possible, by key number and
street address. The notice must also include the offering price and a
statement that:
(1) the property may not be sold to a person who is ineligible
under section 16 of this chapter; and
(2) an offer to purchase the property submitted by a trust (as
defined in IC 30-4-1-1(a)) must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
At the time of publication of notice under this subsection, the
disposing agent shall send notice by certified mail to all abutting
landowners. This notice shall contain the same information as the
published notice.
(f) The disposing agent shall also have each tract appraised. The
appraiser must be professionally engaged in making appraisals, a
person licensed under IC 25-34.1, or an employee of the political
subdivision who is familiar with the value of the tract. However, if
the assessed value of a tract is less than six thousand dollars
($6,000), based on the most recent assessment of the tract or of the
tract of which it was a part before it was acquired, the disposing
agent is not required to have the tract appraised.
(g) If, within ten (10) days after the date of publication of the
notice under subsection (e), the disposing agent receives an eligible
offer to purchase a tract listed in the notice at or in excess of the
offering price, the disposing agent shall conduct the negotiation and
sale of the tract under section 4(c) through 4(g) of this chapter.
(h) Notwithstanding subsection (g), if within ten (10) days after
the date of publication of the notice under subsection (e) the
disposing agent does not receive from any person other than an
abutting landowner an eligible offer to purchase the tract at or in
excess of the offering price, the disposing agent shall conduct the
negotiation and sale of the tract as follows:
(1) If only one (1) abutting landowner makes an eligible offer
to purchase the tract, then subject to section 16 of this chapter
and without further appraisal or notice, the disposing agent shall
offer to negotiate for the sale of the tract with that abutting
landowner.
(2) If more than one (1) eligible abutting landowner submits an
offer to purchase the tract, the other eligible abutting
landowners who submit offers shall be informed of the highest
offer received and be given an opportunity to submit one (1)
additional offer. The tract shall be sold to the eligible abutting
landowner who submits the highest offer for the tract and who
complies with any requirement under subsection (e)(2).
(3) If no eligible abutting landowner submits an offer to
purchase the tract, the disposing agent may sell the tract to any
person who submits the highest offer for the tract, except a
person who is ineligible to purchase the tract under section 16
of this chapter. As added by Acts 1981, P.L.57, SEC.37. Amended by P.L.47-1983,
SEC.5; P.L.332-1985, SEC.1; P.L.333-1985, SEC.1; P.L.60-1988,
SEC.27; P.L.336-1989(ss), SEC.47; P.L.165-1994, SEC.4;
P.L.170-2003, SEC.17.
IC 36-1-11-5.5 School corporations; sale or transfer of real property or tangible
or intangible personal property or licenses
Sec. 5.5. Notwithstanding IC 5-22-22 and sections 4, 4.1, 4.2, and
5 of this chapter, a disposing agent of a school corporation may sell
or transfer:
(1) real property; or
(2) tangible or intangible personal property, licenses, or any
interest in the tangible or intangible personal property or
licenses that are used in, or related to, the operation of a radio
station by a school corporation;
for no compensation or a nominal fee to a not-for-profit corporation
created for educational or recreational purposes unless the
corporation is subject to section 16 of this chapter. As added by Acts 1982, P.L.208, SEC.5. Amended by P.L.215-1986,
SEC.1; P.L.60-1988, SEC.28; P.L.342-1989(ss), SEC.36;
P.L.165-1994, SEC.5; P.L.49-1997, SEC.71. IC 36-1-11-5.6 Sale or transfer of property to a nonprofit corporation
Sec. 5.6. Notwithstanding IC 5-22-22 and sections 4, 4.1, 4.2, and
5 of this chapter, a disposing agent of a county having a population
of more than fifty-five thousand (55,000) but less than sixty-five
thousand (65,000) may sell or transfer:
(1) real property; or
(2) tangible or intangible personal property, licenses, or any
interest in the tangible or intangible personal property;
for no compensation or a nominal fee to a nonprofit corporation
created for agricultural, educational, or recreational purposes. As added by P.L.10-2001, SEC.1. Amended by P.L.170-2002,
SEC.139.
IC 36-1-11-5.7 Sale or transfer of real property or tangible or intangible personal
property or licenses to volunteer fire department, fire protection
district, or fire protection territory
Sec. 5.7. (a) As used in this section, "fire department" refers to
any of the following:
(1) A volunteer fire department (as defined in IC 36-8-12-2).
(2) The board of fire trustees of a fire protection district
established under IC 36-8-11.
(3) The provider unit of a fire protection territory established
under IC 36-8-19.
(b) Notwithstanding IC 5-22-22 and sections 4, 4.1, 4.2, and 5 of
this chapter, a disposing agent of a political subdivision may sell or
transfer:
(1) real property; or
(2) tangible or intangible personal property, licenses, or any
interest in the tangible or intangible personal property or
licenses;
without consideration or for a nominal consideration to a fire
department for construction of a fire station or other purposes related
to firefighting. As added by P.L.188-2007, SEC.3. Amended by P.L.128-2008,
SEC.6.
IC 36-1-11-5.9 Sale or transfer of real property acquired by tax default; rights of
abutting landowners; procedures
Sec. 5.9. (a) As used in this section, "abutting landowner" has the
meaning set forth in section 5(a) of this chapter.
(b) As used in this section, "real property acquired by tax default"
means the following:
(1) Real property for which a county holds a tax deed issued
under IC 6-1.1-25.
(2) Real property acquired by a political subdivision from a
county under section 8 of this chapter if at the time of transfer
the county held a tax deed issued under IC 6-1.1-25 for the real
property.
(c) Notwithstanding sections 4, 4.1, 4.2, and 5 of this chapter, and
subject to the procedures described in subsections (d) and (e), a
disposing agent of a political subdivision may sell or transfer real
property acquired by tax default without consideration or for a
nominal consideration to an abutting landowner.
(d) A disposing agent who desires to transfer real property
acquired by tax default to an abutting landowner shall send notice by
certified mail to all abutting landowners. The notice must identify the
tracts intended for sale by legal description and, if possible, by key
number and street address. The notice must also include a statement
that:
(1) the disposing agent is authorized to transfer the property for
no consideration or for nominal consideration;
(2) the property may not be sold to a person who is ineligible
under section 16 of this chapter; and
(3) an offer to purchase the property submitted by a trust (as
defined in IC 30-4-1-1(a)) must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
(e) Not earlier than fourteen (14) days after a disposing agent
sends the notice described in subsection (d) to the abutting
landowners of a tract, the disposing agent shall conduct the
negotiation and sale of the tract under this section as follows:
(1) If only one (1) eligible abutting landowner makes an offer
to purchase the tract, then subject to section 16 of this chapter
and without appraisal or further notice, the disposing agent shall
offer to negotiate for the sale of the tract with that abutting
landowner.
(2) If more than one (1) eligible abutting landowner submits an
offer to purchase the tract, the other eligible abutting
landowners who submit offers shall be informed of the highest
offer received and be given an opportunity to submit one (1)
additional offer. The tract shall be sold to the eligible abutting
landowner who submits the highest offer for the tract and who
complies with any requirement under subsection (d)(3). As added by P.L.27-2008, SEC.3.
IC 36-1-11-6
Repealed
(Repealed by P.L.49-1997, SEC.86.)
IC 36-1-11-7 Exchange of property with persons other than governmental
entity; procedure
Sec. 7. (a) A disposing agent who exchanges property must
proceed under this section, except as permitted by section 8 of this
chapter.
(b) An exchange may be made with a person who is:
(1) not a governmental entity; and
(2) eligible under section 16 of this chapter;
only after advertisement following as nearly as practical the
procedure prescribed by section 4 of this chapter, with the property
the disposing agent conveys to be partial or full payment for the
property the disposing agent receives. As added by Acts 1981, P.L.57, SEC.37. Amended by P.L.60-1988,
SEC.29.
IC 36-1-11-8 Exchange of property with governmental entity
Sec. 8. A transfer or exchange of property may be made with a
governmental entity upon terms and conditions agreed upon by the
entities as evidenced by adoption of a substantially identical
resolution by each entity. Such a transfer may be made for any
amount of real property, cash, or other personal property, as agreed
upon by the entities. As added by Acts 1981, P.L.57, SEC.37.
IC 36-1-11-9 Trade or exchange as part of purchase price of new property
Sec. 9. Whenever a disposing agent purchases new property with
a condition that property of a similar nature is to be traded in or
exchanged as part of the purchase and in reduction of the purchase
price, the exchange or trade-in may be made without compliance
with section 7 of this chapter but must comply with section 16 of this
chapter. As added by Acts 1981, P.L.57, SEC.37. Amended by P.L.60-1988,
SEC.30.
IC 36-1-11-10 Lease of property; procedure
Sec. 10. (a) A disposing agent may lease property rather than sell,
transfer, or exchange it under this chapter only if the disposing agent
determines that a lease rather than a sale, transfer, or exchange would
be in the best interest of the disposing agent's political subdivision or
agency and the public. Except as provided in section 12 of this
chapter, the disposing agent must proceed under this section in
leasing property.
(b) The disposing agent shall first have the property appraised in
the manner prescribed in section 4(b) of this chapter, except that the
appraisers shall determine the fair market rental value of the
property.
(c) The disposing agent shall receive bids in the manner
prescribed in section 4 of this chapter and lease the property to the
highest and best bidder. However, the disposing agent may lease the
property for less than ninety percent (90%) of the appraised fair
market rental value only after having an additional notice of the lease
published in accordance with section 4(c) of this chapter.
(d) The disposing agent shall determine the terms and conditions
of any lease under this section, which may include options to renew
and options to purchase. The property may not be leased to a person
who is ineligible under section 16 of this chapter.
(e) The terms of a lease with option to purchase may provide that
all or part of the rental payments under the lease apply to the
purchase price. The purchase price must be equal to at least the
minimum sale price determined under section 4(f) of this chapter.
(f) Property owned by a political subdivision or agency may be
leased for a term longer than three (3) years if the lease is approved
by the fiscal body of the political subdivision. As added by Acts 1981, P.L.57, SEC.37. Amended by P.L.339-1983,
SEC.1; P.L.60-1988, SEC.31.
IC 36-1-11-11 Execution of deed or other instrument
Sec. 11. Whenever:
(1) there is a dispute concerning the interest in any property of
a political subdivision, and the executive considers the dispute
not frivolous; or
(2) it would facilitate the establishment of title to any property;
a deed or other instrument may be executed on behalf of the political
subdivision to a person who is eligible to receive the deed or
instrument under section 16 of this chapter for any consideration that
the disposing agent considers fair and in the public interest. As added by Acts 1981, P.L.57, SEC.37. Amended by P.L.60-1988,
SEC.32.
IC 36-1-11-12 Lease of property; alternative procedure
Sec. 12. The following procedure may be used instead of that in
section 10 of this chapter if the disposing agent makes a written
determination (which must include the disposing agent's reasons) that
the use of section 10 of this chapter is not feasible, and authorization
to use this procedure is granted by the executive of the political
subdivision or agency:
(1) Proposals to develop specifications shall be solicited
through a request for proposals, which must include all of the
following:
(A) The factors or criteria that will be used in evaluating the
proposals, including a statement that:
(i) the property may not be leased to a person who is
ineligible under section 16 of this chapter; and
(ii) a proposal submitted by a trust (as defined in
IC 30-4-1-1(a)) must identify each beneficiary of the trust
and each settlor empowered to revoke or modify the trust.
(B) A statement concerning the relative importance of price
and the other evaluation factors.
(C) A statement concerning whether the proposal must be
accompanied by a certified check or other evidence of
financial responsibility.
(D) A statement concerning whether discussions may be
conducted with the offerors for the purpose of clarification
to assure full understanding of, and responsiveness to, the
solicitation requirements.
(2) Notice of the request for proposals shall be given by
publication in accordance with IC 5-3-1.
(3) As provided in the request for proposals, discussions may be
conducted with the offerors for the purpose of clarification to
assure full understanding of, and responsiveness to, the
solicitation requirements.
(4) Eligible offerors must be accorded fair and equal treatment
with respect to any opportunity for discussion and revisions of
proposals.
(5) After the procedures outlined in this section have been
completed, the disposing agent shall make a determination as to
the most appropriate response to the request for proposals and
shall dispose of the subject property in accordance with that
response.
(6) Access to the proposals under this chapter shall be
determined in accordance with the provisions of IC 5-23-7.
(7) The person submitting the successful proposal is not
responsible for the requirements set forth in IC 5-22 with regard
to the purchase of supplies if the purchase of supplies was
included within the proposal or the supplies are not paid for
with public funds. As added by P.L.339-1983, SEC.2. Amended by P.L.60-1988,
SEC.33; P.L.336-1989(ss), SEC.48; P.L.82-1995, SEC.10;
P.L.49-1997, SEC.72.
IC 36-1-11-13 Restrictions on lease of county-owned property
Sec. 13. Notwithstanding any other law, a disposing agent for a
county may not lease county-owned property at a rate that deviates
more than five percent (5%) from the average square footage rate
charged for similar property in that county. As added by P.L.38-1984, SEC.3.
IC 36-1-11-14 Gift of tract; reconveyance
Sec. 14. If a tract was originally transferred to a political
subdivision as a gift and public funds have not been expended to
improve the property since the original transfer, the disposing agent
may convey it back to the original grantor or the grantor's successors
with their consent without consideration upon a determination by the
disposing agent that:
(1) the property is surplus; and
(2) the original grantor or the grantor's successors are eligible
to receive the tract under section 16 of this chapter. As added by P.L.331-1985, SEC.3. Amended by P.L.60-1988,
SEC.34. IC 36-1-11-15 Tract transferred as gift by not-for-profit corporation or
organization; reconveyance
Sec. 15. If a tract was originally transferred to a political
subdivision as a gift by a not-for-profit corporation or organization,
the disposing agent may convey it back to the original grantor or the
grantor's successors with their consent without consideration upon a
determination by the disposing agent that:
(1) the property is surplus; and
(2) the original grantor or the grantor's successors are eligible
to receive the tract under section 16 of this chapter. As added by P.L.330-1985, SEC.5. Amended by P.L.60-1988,
SEC.35.
IC 36-1-11-16 Purchase, receipt, or lease of property by ineligible persons;
eligible persons; effect of ineligibility
Sec. 16. (a) This section applies to the following:
(1) A person who owes delinquent taxes, special assessments,
penalties, interest, or costs directly attributable to a prior tax
sale on a tract of real property listed under IC 6-1.1-24-1.
(2) A person who is an agent of the person described in
subdivision (1).
(b) A person subject to this section may not purchase, receive, or
lease a tract that is offered in a sale, exchange, or lease under this
chapter.
(c) If a person purchases, receives, or leases a tract that the person
was not eligible to purchase, receive, or lease under this section, the
sale, transfer, or lease of the property is void and the county retains
the interest in the tract it possessed before the sale, transfer, or lease
of the tract. As added by P.L.60-1988, SEC.36. Amended by P.L.342-1989(ss),
SEC.37; P.L.98-2000, SEC.18.
IC 36-1-11-17 Terms of reconveyance or return
Sec. 17. If property disposed of under this chapter is to be
reconveyed or automatically returned to the political subdivision or
an agency of a political subdivision that disposed of the property, the
terms of the reconveyance or return shall be as agreed to before the
disposal. If the terms of the reconveyance are not set forth before the
disposal, the political subdivision shall obtain at least two (2)
appraisals and pay not more than the average of the two (2)
appraisals. As added by P.L.82-1995, SEC.11.
IC 36-1-11
Chapter 11. Disposal of Real or Personal Property
IC 36-1-11-1 Application of chapter
Sec. 1. (a) Except as provided in subsection (b), this chapter
applies to the disposal of property by:
(1) political subdivisions; and
(2) their agencies.
(b) This chapter does not apply to the following:
(1) The disposal of property under an urban homesteading
program under IC 36-7-17.
(2) The lease of school buildings under IC 20-47.
(3) The sale of land to a lessor in a lease-purchase contract
under IC 36-1-10.
(4) The disposal of property by a redevelopment commission
established under IC 36-7.
(5) The leasing of property by a board of aviation
commissioners established under IC 8-22-2 or an airport
authority established under IC 8-22-3.
(6) The disposal of a municipally owned utility under IC 8-1.5.
(7) The sale or lease of property by a unit to an Indiana
nonprofit corporation organized for educational, literary,
scientific, religious, or charitable purposes that is exempt from
federal income taxation under Section 501 of the Internal
Revenue Code or the sale or reletting of that property by the
nonprofit corporation.
(8) The disposal of surplus property by a hospital established
and operated under IC 16-22-1 through IC 16-22-5, IC 16-22-8,
IC 16-23-1, or IC 16-24-1.
(9) The sale or lease of property acquired under IC 36-7-13 for
industrial development.
(10) The sale, lease, or disposal of property by a local hospital
authority under IC 5-1-4.
(11) The sale or other disposition of property by a county or
municipality to finance housing under IC 5-20-2.
(12) The disposition of property by a soil and water
conservation district under IC 14-32.
(13) The disposal of surplus property by the health and hospital
corporation established and operated under IC 16-22-8.
(14) The disposal of personal property by a library board under
IC 36-12-3-5(c).
(15) The sale or disposal of property by the historic
preservation commission under IC 36-7-11.1.
(16) The disposal of an interest in property by a housing
authority under IC 36-7-18.
(17) The disposal of property under IC 36-9-37-26.
(18) The disposal of property used for park purposes under
IC 36-10-7-8.
(19) The disposal of textbooks that will no longer be used by
school corporations under IC 20-26-12.
(20) The disposal of residential structures or improvements by
a municipal corporation without consideration to:
(A) a governmental entity; or
(B) a nonprofit corporation that is organized to expand the
supply or sustain the existing supply of good quality,
affordable housing for residents of Indiana having low or
moderate incomes.
(21) The disposal of historic property without consideration to
a nonprofit corporation whose charter or articles of
incorporation allows the corporation to take action for the
preservation of historic property. As used in this subdivision,
"historic property" means property that is:
(A) listed on the National Register of Historic Places; or
(B) eligible for listing on the National Register of Historic
Places, as determined by the division of historic preservation
and archeology of the department of natural resources.
(22) The disposal of real property without consideration to:
(A) a governmental agency; or
(B) a nonprofit corporation that exists for the primary
purpose of enhancing the environment;
when the property is to be used for compliance with a permit or
an order issued by a federal or state regulatory agency to
mitigate an adverse environmental impact.
(23) The disposal of property to a person under an agreement
between the person and a political subdivision or an agency of
a political subdivision under IC 5-23.
(24) The disposal of residential real property pursuant to a
federal aviation regulation (14 CFR 150) Airport Noise
Compatibility Planning Program as approved by the Federal
Aviation Administration. As added by Acts 1981, P.L.57, SEC.37. Amended by Acts 1982,
P.L.208, SEC.1; P.L.16-1983, SEC.21; P.L.182-1985, SEC.15;
P.L.214-1986, SEC.1; P.L.2-1987, SEC.49; P.L.214-1989, SEC.5;
P.L.336-1989(ss), SEC.44; P.L.162-1991, SEC.4; P.L.2-1993,
SEC.198; P.L.98-1993, SEC.11; P.L.1-1994, SEC.172;
P.L.165-1994, SEC.1; P.L.1-1995, SEC.79; P.L.310-1995, SEC.1;
P.L.82-1995, SEC.7; P.L.49-1997, SEC.69; P.L.76-1998, SEC.1;
P.L.1-2005, SEC.234; P.L.184-2005, SEC.37; P.L.2-2006, SEC.188.
IC 36-1-11-2 Definitions
Sec. 2. The following definitions apply throughout this chapter:
(1) "Disposal" means sale, exchange, transfer, or lease of
property.
(2) "Disposing agent" means the board or officer of a political
subdivision or agency having the power to award contracts for
which public notice is required, with respect to property of the
political subdivision or agency.
(3) "Key number" has the meaning set forth in IC 6-1.1-1-8.5.
(4) "Operating agreement" has the meaning set forth in
IC 5-23-2-7.
(5) "Person" means any association, corporation, limited
liability company, fiduciary, individual, joint venture,
partnership, sole proprietorship, or any other legal entity.
(6) "Property" means all fixtures and real property to be
included in a disposal.
(7) "Tract" has the meaning set forth in IC 6-1.1-1-22.5. As added by Acts 1981, P.L.57, SEC.37. Amended by P.L.60-1988,
SEC.23; P.L.82-1995, SEC.8; P.L.49-1997, SEC.70.
IC 36-1-11-3 Approval
Sec. 3. (a) This section does not apply to the disposal of real
property under section 5, 5.5, 5.9, or 8 of this chapter.
(b) Disposal of real property under this chapter is subject to the
approval of:
(1) the executive of the political subdivision or agency; or
(2) the fiscal body of the political subdivision or agency, if
there is no executive.
The executive or fiscal body may not approve a disposal of property
without conducting a public hearing after giving notice under
IC 5-3-1. However, in a municipality the executive shall designate a
board or commission of the municipality to give notice, conduct the
hearing, and notify the executive of its recommendation.
(c) Except as provided in section 3.2 of this chapter, in addition,
the fiscal body of a unit must approve:
(1) every sale of real property having an appraised value of fifty
thousand dollars ($50,000) or more;
(2) every lease of real property for which the total annual rental
payments will be twenty-five thousand dollars ($25,000) or
more; and
(3) every transfer of real property under section 14 or 15 of this
chapter. As added by Acts 1981, P.L.57, SEC.37. Amended by Acts 1982,
P.L.208, SEC.2; P.L.331-1985, SEC.1; P.L.330-1985, SEC.3;
P.L.35-1990, SEC.43; P.L.82-1995, SEC.9; P.L.124-1998, SEC.11;
P.L.27-2008, SEC.1.
IC 36-1-11-3.1 Sale of residential real property; disapproval
Sec. 3.1. (a) In addition to any other reason for disapproving a
disposal of property under section 3 of this chapter, the executive of
a consolidated city may disapprove a sale of a tract of residential
property to any bidder who does not by affidavit declare that:
(1) the bidder will reside on that property for at least one (1)
year after the bidder obtains possession of it; and
(2) the bidder is eligible to purchase the property under section
16 of this chapter.
(b) When the executive exercises disapproval under this section,
the property may be sold to the highest bidder who also presents an
affidavit declaring that:
(1) the bidder will reside on that property for a one (1) year
period after the bidder obtains possession; and
(2) the bidder is eligible to purchase the property under section
16 of this chapter. As added by Acts 1981, P.L.306, SEC.1. Amended by P.L.60-1988,
SEC.24.
IC 36-1-11-3.2 Approval of sale, lease, or transfer of real property in certain cities
Sec. 3.2. (a) This section applies to a city having a population of:
(1) more than ninety thousand (90,000) but less than one
hundred five thousand (105,000);
(2) more than thirty-two thousand (32,000) but less than
thirty-two thousand eight hundred (32,800); or
(3) more than seventy-five thousand (75,000) but less than
ninety thousand (90,000).
(b) Notwithstanding section 3(c) of this chapter, the fiscal body
of a city must approve:
(1) every sale of real property having an appraised value of ten
thousand dollars ($10,000) or more;
(2) every lease of real property for which the total annual rental
payments will be five thousand dollars ($5,000) or more; and
(3) every transfer of real property under section 14 or 15 of this
chapter. As added by P.L.124-1998, SEC.12. Amended by P.L.170-2002,
SEC.138.
IC 36-1-11-4 Sale or transfer of real property; procedure
Sec. 4. (a) A disposing agent who wants to sell or transfer real
property must comply with this section, except as permitted by
section 4.1, 4.2, 5, 5.5, 5.7, 5.9, 8, 14, or 15 of this chapter.
(b) The disposing agent shall first have the property appraised by
two (2) appraisers. The appraisers must be:
(1) professionally engaged in making appraisals;
(2) licensed under IC 25-34.1; or
(3) employees of the political subdivision familiar with the
value of the property.
The appraisers shall make a joint appraisal of the property.
(c) After the property is appraised, the disposing agent shall
publish a notice in accordance with IC 5-3-1 setting forth the terms
and conditions of the sale and, when subsection (e) is employed, may
engage an auctioneer licensed under IC 25-6.1 to advertise the sale
and to conduct a public auction. The advertising conducted by the
auctioneer is in addition to any other notice required by law and shall
include a detailed description of the property to be sold stating the
key numbers, if any, of the tracts within that property. If the
disposing agent determines that the best sale of the property can be
made by letting the bidders determine certain conditions of the sale
(such as required zoning or soil or drainage conditions) as a
prerequisite to purchasing the property, the disposing agent may
permit the bidders to specify those conditions. The notice must state
the following:
(1) Bids will be received beginning on a specific date.
(2) The sale will continue from day to day for a period
determined by the disposing agent of not more than sixty (60)
days.
(3) The property may not be sold to a person who is ineligible
under section 16 of this chapter.
(4) A bid submitted by a trust (as defined in IC 30-4-1-1(a))
must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
(d) A bid must be open to public inspection. A bidder may raise
the bidder's bid, and subject to subsection (e), that raise takes effect
after the board has given written notice of that raise to the other
bidders.
(e) The disposing agent may also engage an auctioneer licensed
under IC 25-6.1 to conduct a sale by public auction. The auction may
be conducted either at the time for beginning the sale in accordance
with the public notice or after the beginning of the sale. The
disposing agent shall give each bidder who has submitted a bid
written notice of the time and place of the auction.
(f) The disposing agent may, before expiration of the time set out
in the notice, sell the property to the highest and best bidder. The
highest and best bidder must have complied with any requirement
under subsection (c)(4). However, the disposing agent may sell the
property for less than ninety percent (90%) of the appraised value of
the tracts only after having an additional notice of the sale published
in accordance with subsection (c). The disposing agent may reject all
bids.
(g) If the disposing agent determines that, in the exercise of good
business judgment, the disposing agent should hire a broker or
auctioneer to sell the property, the disposing agent may do so and
pay the broker or auctioneer a reasonable compensation out of the
gross proceeds of the sale. However, the disposing agent must still
comply with the procedural requirements of this section. The
disposing agent may hire one (1) of the appraisers as the broker or
auctioneer. As added by Acts 1981, P.L.57, SEC.37. Amended by Acts 1982,
P.L.208, SEC.3; P.L.32-1983, SEC.10; P.L.331-1985, SEC.2;
P.L.330-1985, SEC.4; P.L.60-1988, SEC.25; P.L.336-1989(ss),
SEC.45; P.L.165-1994, SEC.2; P.L.188-2007, SEC.2; P.L.27-2008,
SEC.2.
IC 36-1-11-4.1 Sale or transfer of real property, including provision for leaseback;
notice; bids
Sec. 4.1. (a) This section applies to a disposing agent who wants
to sell or transfer real property, and as a condition of sale, includes
a provision for a leaseback or leaseback with option to repurchase.
(b) The disposing agent shall publish notice in accordance with
IC 5-3-1 setting forth the terms and conditions of the sale. The notice
must state the following:
(1) Bids will be received beginning on a specific date.
(2) The sale will continue from day to day for a period
determined by the disposing agent of not more than sixty (60)
days.
(3) The property may not be sold or transferred to a person who
is ineligible under section 16 of this chapter.
(4) A bid submitted by a trust (as defined in IC 30-4-1-1(a))
must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
(c) A bid must be open to public inspection.
(d) After the period for receiving bids has expired, a disposing
agent may sell the property to the highest and best eligible bidder.
The highest and best eligible bidder must have complied with any
requirement under subsection (b)(4).
(e) IC 36-1-10 does not apply to this section. As added by Acts 1982, P.L.208, SEC.4. Amended by P.L.60-1988,
SEC.26; P.L.336-1989(ss), SEC.46.
IC 36-1-11-4.2 Sale or transfer of real property not acquired through eminent
domain to promote an economic development project or facilitate
compatible land use planning
Sec. 4.2. (a) This section applies to a disposing agent who wants
to sell or transfer real property not acquired through eminent domain
procedures for any of the following purposes:
(1) To promote an economic development project.
(2) To facilitate compatible land use planning.
(b) The disposing agent shall first have the property appraised by
two (2) appraisers. The appraisers must be:
(1) professionally engaged in making appraisals;
(2) licensed under IC 25-34.1; or
(3) employees of the political subdivision familiar with the
value of the property.
The appraisers shall make a joint appraisal of the property.
(c) The disposing agent may:
(1) negotiate a sale or transfer; and
(2) dispose of the real property;
at a value that is not less than the appraised value determined under
subsection (b). As added by P.L.165-1994, SEC.3.
IC 36-1-11-5 Sale of real property having certain value or less; rights of abutting
landowners; procedures
Sec. 5. (a) As used in this section, "abutting landowner" means an
owner of property that:
(1) touches, borders on, or is contiguous to the property that is
the subject of sale; and
(2) does not constitute a:
(A) public easement; or
(B) public right-of-way.
(b) As used in this section, "offering price" means the appraised
value of real property plus all costs associated with the sale,
including:
(1) appraisal fees;
(2) title insurance;
(3) recording fees; and
(4) advertising costs.
(c) If the assessed value of a tract of real property to be sold is
less than fifteen thousand dollars ($15,000), based on the most recent
assessment of the tract or of the tract of which it was a part before it
was acquired, the disposing agent may proceed under this section.
(d) The disposing agent may determine that:
(1) the highest and best use of the tract is sale to an abutting
landowner;
(2) the cost to the public of maintaining the tract equals or
exceeds the estimated fair market value of the tract; or
(3) it is economically unjustifiable to sell the tract under section
4 of this chapter.
(e) Within ten (10) days after the disposing agent makes a
determination under subsection (d), the disposing agent shall publish
a notice in accordance with IC 5-3-1 identifying the tracts intended
for sale by legal description and, if possible, by key number and
street address. The notice must also include the offering price and a
statement that:
(1) the property may not be sold to a person who is ineligible
under section 16 of this chapter; and
(2) an offer to purchase the property submitted by a trust (as
defined in IC 30-4-1-1(a)) must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
At the time of publication of notice under this subsection, the
disposing agent shall send notice by certified mail to all abutting
landowners. This notice shall contain the same information as the
published notice.
(f) The disposing agent shall also have each tract appraised. The
appraiser must be professionally engaged in making appraisals, a
person licensed under IC 25-34.1, or an employee of the political
subdivision who is familiar with the value of the tract. However, if
the assessed value of a tract is less than six thousand dollars
($6,000), based on the most recent assessment of the tract or of the
tract of which it was a part before it was acquired, the disposing
agent is not required to have the tract appraised.
(g) If, within ten (10) days after the date of publication of the
notice under subsection (e), the disposing agent receives an eligible
offer to purchase a tract listed in the notice at or in excess of the
offering price, the disposing agent shall conduct the negotiation and
sale of the tract under section 4(c) through 4(g) of this chapter.
(h) Notwithstanding subsection (g), if within ten (10) days after
the date of publication of the notice under subsection (e) the
disposing agent does not receive from any person other than an
abutting landowner an eligible offer to purchase the tract at or in
excess of the offering price, the disposing agent shall conduct the
negotiation and sale of the tract as follows:
(1) If only one (1) abutting landowner makes an eligible offer
to purchase the tract, then subject to section 16 of this chapter
and without further appraisal or notice, the disposing agent shall
offer to negotiate for the sale of the tract with that abutting
landowner.
(2) If more than one (1) eligible abutting landowner submits an
offer to purchase the tract, the other eligible abutting
landowners who submit offers shall be informed of the highest
offer received and be given an opportunity to submit one (1)
additional offer. The tract shall be sold to the eligible abutting
landowner who submits the highest offer for the tract and who
complies with any requirement under subsection (e)(2).
(3) If no eligible abutting landowner submits an offer to
purchase the tract, the disposing agent may sell the tract to any
person who submits the highest offer for the tract, except a
person who is ineligible to purchase the tract under section 16
of this chapter. As added by Acts 1981, P.L.57, SEC.37. Amended by P.L.47-1983,
SEC.5; P.L.332-1985, SEC.1; P.L.333-1985, SEC.1; P.L.60-1988,
SEC.27; P.L.336-1989(ss), SEC.47; P.L.165-1994, SEC.4;
P.L.170-2003, SEC.17.
IC 36-1-11-5.5 School corporations; sale or transfer of real property or tangible
or intangible personal property or licenses
Sec. 5.5. Notwithstanding IC 5-22-22 and sections 4, 4.1, 4.2, and
5 of this chapter, a disposing agent of a school corporation may sell
or transfer:
(1) real property; or
(2) tangible or intangible personal property, licenses, or any
interest in the tangible or intangible personal property or
licenses that are used in, or related to, the operation of a radio
station by a school corporation;
for no compensation or a nominal fee to a not-for-profit corporation
created for educational or recreational purposes unless the
corporation is subject to section 16 of this chapter. As added by Acts 1982, P.L.208, SEC.5. Amended by P.L.215-1986,
SEC.1; P.L.60-1988, SEC.28; P.L.342-1989(ss), SEC.36;
P.L.165-1994, SEC.5; P.L.49-1997, SEC.71. IC 36-1-11-5.6 Sale or transfer of property to a nonprofit corporation
Sec. 5.6. Notwithstanding IC 5-22-22 and sections 4, 4.1, 4.2, and
5 of this chapter, a disposing agent of a county having a population
of more than fifty-five thousand (55,000) but less than sixty-five
thousand (65,000) may sell or transfer:
(1) real property; or
(2) tangible or intangible personal property, licenses, or any
interest in the tangible or intangible personal property;
for no compensation or a nominal fee to a nonprofit corporation
created for agricultural, educational, or recreational purposes. As added by P.L.10-2001, SEC.1. Amended by P.L.170-2002,
SEC.139.
IC 36-1-11-5.7 Sale or transfer of real property or tangible or intangible personal
property or licenses to volunteer fire department, fire protection
district, or fire protection territory
Sec. 5.7. (a) As used in this section, "fire department" refers to
any of the following:
(1) A volunteer fire department (as defined in IC 36-8-12-2).
(2) The board of fire trustees of a fire protection district
established under IC 36-8-11.
(3) The provider unit of a fire protection territory established
under IC 36-8-19.
(b) Notwithstanding IC 5-22-22 and sections 4, 4.1, 4.2, and 5 of
this chapter, a disposing agent of a political subdivision may sell or
transfer:
(1) real property; or
(2) tangible or intangible personal property, licenses, or any
interest in the tangible or intangible personal property or
licenses;
without consideration or for a nominal consideration to a fire
department for construction of a fire station or other purposes related
to firefighting. As added by P.L.188-2007, SEC.3. Amended by P.L.128-2008,
SEC.6.
IC 36-1-11-5.9 Sale or transfer of real property acquired by tax default; rights of
abutting landowners; procedures
Sec. 5.9. (a) As used in this section, "abutting landowner" has the
meaning set forth in section 5(a) of this chapter.
(b) As used in this section, "real property acquired by tax default"
means the following:
(1) Real property for which a county holds a tax deed issued
under IC 6-1.1-25.
(2) Real property acquired by a political subdivision from a
county under section 8 of this chapter if at the time of transfer
the county held a tax deed issued under IC 6-1.1-25 for the real
property.
(c) Notwithstanding sections 4, 4.1, 4.2, and 5 of this chapter, and
subject to the procedures described in subsections (d) and (e), a
disposing agent of a political subdivision may sell or transfer real
property acquired by tax default without consideration or for a
nominal consideration to an abutting landowner.
(d) A disposing agent who desires to transfer real property
acquired by tax default to an abutting landowner shall send notice by
certified mail to all abutting landowners. The notice must identify the
tracts intended for sale by legal description and, if possible, by key
number and street address. The notice must also include a statement
that:
(1) the disposing agent is authorized to transfer the property for
no consideration or for nominal consideration;
(2) the property may not be sold to a person who is ineligible
under section 16 of this chapter; and
(3) an offer to purchase the property submitted by a trust (as
defined in IC 30-4-1-1(a)) must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
(e) Not earlier than fourteen (14) days after a disposing agent
sends the notice described in subsection (d) to the abutting
landowners of a tract, the disposing agent shall conduct the
negotiation and sale of the tract under this section as follows:
(1) If only one (1) eligible abutting landowner makes an offer
to purchase the tract, then subject to section 16 of this chapter
and without appraisal or further notice, the disposing agent shall
offer to negotiate for the sale of the tract with that abutting
landowner.
(2) If more than one (1) eligible abutting landowner submits an
offer to purchase the tract, the other eligible abutting
landowners who submit offers shall be informed of the highest
offer received and be given an opportunity to submit one (1)
additional offer. The tract shall be sold to the eligible abutting
landowner who submits the highest offer for the tract and who
complies with any requirement under subsection (d)(3). As added by P.L.27-2008, SEC.3.
IC 36-1-11-6
Repealed
(Repealed by P.L.49-1997, SEC.86.)
IC 36-1-11-7 Exchange of property with persons other than governmental
entity; procedure
Sec. 7. (a) A disposing agent who exchanges property must
proceed under this section, except as permitted by section 8 of this
chapter.
(b) An exchange may be made with a person who is:
(1) not a governmental entity; and
(2) eligible under section 16 of this chapter;
only after advertisement following as nearly as practical the
procedure prescribed by section 4 of this chapter, with the property
the disposing agent conveys to be partial or full payment for the
property the disposing agent receives. As added by Acts 1981, P.L.57, SEC.37. Amended by P.L.60-1988,
SEC.29.
IC 36-1-11-8 Exchange of property with governmental entity
Sec. 8. A transfer or exchange of property may be made with a
governmental entity upon terms and conditions agreed upon by the
entities as evidenced by adoption of a substantially identical
resolution by each entity. Such a transfer may be made for any
amount of real property, cash, or other personal property, as agreed
upon by the entities. As added by Acts 1981, P.L.57, SEC.37.
IC 36-1-11-9 Trade or exchange as part of purchase price of new property
Sec. 9. Whenever a disposing agent purchases new property with
a condition that property of a similar nature is to be traded in or
exchanged as part of the purchase and in reduction of the purchase
price, the exchange or trade-in may be made without compliance
with section 7 of this chapter but must comply with section 16 of this
chapter. As added by Acts 1981, P.L.57, SEC.37. Amended by P.L.60-1988,
SEC.30.
IC 36-1-11-10 Lease of property; procedure
Sec. 10. (a) A disposing agent may lease property rather than sell,
transfer, or exchange it under this chapter only if the disposing agent
determines that a lease rather than a sale, transfer, or exchange would
be in the best interest of the disposing agent's political subdivision or
agency and the public. Except as provided in section 12 of this
chapter, the disposing agent must proceed under this section in
leasing property.
(b) The disposing agent shall first have the property appraised in
the manner prescribed in section 4(b) of this chapter, except that the
appraisers shall determine the fair market rental value of the
property.
(c) The disposing agent shall receive bids in the manner
prescribed in section 4 of this chapter and lease the property to the
highest and best bidder. However, the disposing agent may lease the
property for less than ninety percent (90%) of the appraised fair
market rental value only after having an additional notice of the lease
published in accordance with section 4(c) of this chapter.
(d) The disposing agent shall determine the terms and conditions
of any lease under this section, which may include options to renew
and options to purchase. The property may not be leased to a person
who is ineligible under section 16 of this chapter.
(e) The terms of a lease with option to purchase may provide that
all or part of the rental payments under the lease apply to the
purchase price. The purchase price must be equal to at least the
minimum sale price determined under section 4(f) of this chapter.
(f) Property owned by a political subdivision or agency may be
leased for a term longer than three (3) years if the lease is approved
by the fiscal body of the political subdivision. As added by Acts 1981, P.L.57, SEC.37. Amended by P.L.339-1983,
SEC.1; P.L.60-1988, SEC.31.
IC 36-1-11-11 Execution of deed or other instrument
Sec. 11. Whenever:
(1) there is a dispute concerning the interest in any property of
a political subdivision, and the executive considers the dispute
not frivolous; or
(2) it would facilitate the establishment of title to any property;
a deed or other instrument may be executed on behalf of the political
subdivision to a person who is eligible to receive the deed or
instrument under section 16 of this chapter for any consideration that
the disposing agent considers fair and in the public interest. As added by Acts 1981, P.L.57, SEC.37. Amended by P.L.60-1988,
SEC.32.
IC 36-1-11-12 Lease of property; alternative procedure
Sec. 12. The following procedure may be used instead of that in
section 10 of this chapter if the disposing agent makes a written
determination (which must include the disposing agent's reasons) that
the use of section 10 of this chapter is not feasible, and authorization
to use this procedure is granted by the executive of the political
subdivision or agency:
(1) Proposals to develop specifications shall be solicited
through a request for proposals, which must include all of the
following:
(A) The factors or criteria that will be used in evaluating the
proposals, including a statement that:
(i) the property may not be leased to a person who is
ineligible under section 16 of this chapter; and
(ii) a proposal submitted by a trust (as defined in
IC 30-4-1-1(a)) must identify each beneficiary of the trust
and each settlor empowered to revoke or modify the trust.
(B) A statement concerning the relative importance of price
and the other evaluation factors.
(C) A statement concerning whether the proposal must be
accompanied by a certified check or other evidence of
financial responsibility.
(D) A statement concerning whether discussions may be
conducted with the offerors for the purpose of clarification
to assure full understanding of, and responsiveness to, the
solicitation requirements.
(2) Notice of the request for proposals shall be given by
publication in accordance with IC 5-3-1.
(3) As provided in the request for proposals, discussions may be
conducted with the offerors for the purpose of clarification to
assure full understanding of, and responsiveness to, the
solicitation requirements.
(4) Eligible offerors must be accorded fair and equal treatment
with respect to any opportunity for discussion and revisions of
proposals.
(5) After the procedures outlined in this section have been
completed, the disposing agent shall make a determination as to
the most appropriate response to the request for proposals and
shall dispose of the subject property in accordance with that
response.
(6) Access to the proposals under this chapter shall be
determined in accordance with the provisions of IC 5-23-7.
(7) The person submitting the successful proposal is not
responsible for the requirements set forth in IC 5-22 with regard
to the purchase of supplies if the purchase of supplies was
included within the proposal or the supplies are not paid for
with public funds. As added by P.L.339-1983, SEC.2. Amended by P.L.60-1988,
SEC.33; P.L.336-1989(ss), SEC.48; P.L.82-1995, SEC.10;
P.L.49-1997, SEC.72.
IC 36-1-11-13 Restrictions on lease of county-owned property
Sec. 13. Notwithstanding any other law, a disposing agent for a
county may not lease county-owned property at a rate that deviates
more than five percent (5%) from the average square footage rate
charged for similar property in that county. As added by P.L.38-1984, SEC.3.
IC 36-1-11-14 Gift of tract; reconveyance
Sec. 14. If a tract was originally transferred to a political
subdivision as a gift and public funds have not been expended to
improve the property since the original transfer, the disposing agent
may convey it back to the original grantor or the grantor's successors
with their consent without consideration upon a determination by the
disposing agent that:
(1) the property is surplus; and
(2) the original grantor or the grantor's successors are eligible
to receive the tract under section 16 of this chapter. As added by P.L.331-1985, SEC.3. Amended by P.L.60-1988,
SEC.34. IC 36-1-11-15 Tract transferred as gift by not-for-profit corporation or
organization; reconveyance
Sec. 15. If a tract was originally transferred to a political
subdivision as a gift by a not-for-profit corporation or organization,
the disposing agent may convey it back to the original grantor or the
grantor's successors with their consent without consideration upon a
determination by the disposing agent that:
(1) the property is surplus; and
(2) the original grantor or the grantor's successors are eligible
to receive the tract under section 16 of this chapter. As added by P.L.330-1985, SEC.5. Amended by P.L.60-1988,
SEC.35.
IC 36-1-11-16 Purchase, receipt, or lease of property by ineligible persons;
eligible persons; effect of ineligibility
Sec. 16. (a) This section applies to the following:
(1) A person who owes delinquent taxes, special assessments,
penalties, interest, or costs directly attributable to a prior tax
sale on a tract of real property listed under IC 6-1.1-24-1.
(2) A person who is an agent of the person described in
subdivision (1).
(b) A person subject to this section may not purchase, receive, or
lease a tract that is offered in a sale, exchange, or lease under this
chapter.
(c) If a person purchases, receives, or leases a tract that the person
was not eligible to purchase, receive, or lease under this section, the
sale, transfer, or lease of the property is void and the county retains
the interest in the tract it possessed before the sale, transfer, or lease
of the tract. As added by P.L.60-1988, SEC.36. Amended by P.L.342-1989(ss),
SEC.37; P.L.98-2000, SEC.18.
IC 36-1-11-17 Terms of reconveyance or return
Sec. 17. If property disposed of under this chapter is to be
reconveyed or automatically returned to the political subdivision or
an agency of a political subdivision that disposed of the property, the
terms of the reconveyance or return shall be as agreed to before the
disposal. If the terms of the reconveyance are not set forth before the
disposal, the political subdivision shall obtain at least two (2)
appraisals and pay not more than the average of the two (2)
appraisals. As added by P.L.82-1995, SEC.11.
IC 36-1-11
Chapter 11. Disposal of Real or Personal Property
IC 36-1-11-1 Application of chapter
Sec. 1. (a) Except as provided in subsection (b), this chapter
applies to the disposal of property by:
(1) political subdivisions; and
(2) their agencies.
(b) This chapter does not apply to the following:
(1) The disposal of property under an urban homesteading
program under IC 36-7-17.
(2) The lease of school buildings under IC 20-47.
(3) The sale of land to a lessor in a lease-purchase contract
under IC 36-1-10.
(4) The disposal of property by a redevelopment commission
established under IC 36-7.
(5) The leasing of property by a board of aviation
commissioners established under IC 8-22-2 or an airport
authority established under IC 8-22-3.
(6) The disposal of a municipally owned utility under IC 8-1.5.
(7) The sale or lease of property by a unit to an Indiana
nonprofit corporation organized for educational, literary,
scientific, religious, or charitable purposes that is exempt from
federal income taxation under Section 501 of the Internal
Revenue Code or the sale or reletting of that property by the
nonprofit corporation.
(8) The disposal of surplus property by a hospital established
and operated under IC 16-22-1 through IC 16-22-5, IC 16-22-8,
IC 16-23-1, or IC 16-24-1.
(9) The sale or lease of property acquired under IC 36-7-13 for
industrial development.
(10) The sale, lease, or disposal of property by a local hospital
authority under IC 5-1-4.
(11) The sale or other disposition of property by a county or
municipality to finance housing under IC 5-20-2.
(12) The disposition of property by a soil and water
conservation district under IC 14-32.
(13) The disposal of surplus property by the health and hospital
corporation established and operated under IC 16-22-8.
(14) The disposal of personal property by a library board under
IC 36-12-3-5(c).
(15) The sale or disposal of property by the historic
preservation commission under IC 36-7-11.1.
(16) The disposal of an interest in property by a housing
authority under IC 36-7-18.
(17) The disposal of property under IC 36-9-37-26.
(18) The disposal of property used for park purposes under
IC 36-10-7-8.
(19) The disposal of textbooks that will no longer be used by
school corporations under IC 20-26-12.
(20) The disposal of residential structures or improvements by
a municipal corporation without consideration to:
(A) a governmental entity; or
(B) a nonprofit corporation that is organized to expand the
supply or sustain the existing supply of good quality,
affordable housing for residents of Indiana having low or
moderate incomes.
(21) The disposal of historic property without consideration to
a nonprofit corporation whose charter or articles of
incorporation allows the corporation to take action for the
preservation of historic property. As used in this subdivision,
"historic property" means property that is:
(A) listed on the National Register of Historic Places; or
(B) eligible for listing on the National Register of Historic
Places, as determined by the division of historic preservation
and archeology of the department of natural resources.
(22) The disposal of real property without consideration to:
(A) a governmental agency; or
(B) a nonprofit corporation that exists for the primary
purpose of enhancing the environment;
when the property is to be used for compliance with a permit or
an order issued by a federal or state regulatory agency to
mitigate an adverse environmental impact.
(23) The disposal of property to a person under an agreement
between the person and a political subdivision or an agency of
a political subdivision under IC 5-23.
(24) The disposal of residential real property pursuant to a
federal aviation regulation (14 CFR 150) Airport Noise
Compatibility Planning Program as approved by the Federal
Aviation Administration. As added by Acts 1981, P.L.57, SEC.37. Amended by Acts 1982,
P.L.208, SEC.1; P.L.16-1983, SEC.21; P.L.182-1985, SEC.15;
P.L.214-1986, SEC.1; P.L.2-1987, SEC.49; P.L.214-1989, SEC.5;
P.L.336-1989(ss), SEC.44; P.L.162-1991, SEC.4; P.L.2-1993,
SEC.198; P.L.98-1993, SEC.11; P.L.1-1994, SEC.172;
P.L.165-1994, SEC.1; P.L.1-1995, SEC.79; P.L.310-1995, SEC.1;
P.L.82-1995, SEC.7; P.L.49-1997, SEC.69; P.L.76-1998, SEC.1;
P.L.1-2005, SEC.234; P.L.184-2005, SEC.37; P.L.2-2006, SEC.188.
IC 36-1-11-2 Definitions
Sec. 2. The following definitions apply throughout this chapter:
(1) "Disposal" means sale, exchange, transfer, or lease of
property.
(2) "Disposing agent" means the board or officer of a political
subdivision or agency having the power to award contracts for
which public notice is required, with respect to property of the
political subdivision or agency.
(3) "Key number" has the meaning set forth in IC 6-1.1-1-8.5.
(4) "Operating agreement" has the meaning set forth in
IC 5-23-2-7.
(5) "Person" means any association, corporation, limited
liability company, fiduciary, individual, joint venture,
partnership, sole proprietorship, or any other legal entity.
(6) "Property" means all fixtures and real property to be
included in a disposal.
(7) "Tract" has the meaning set forth in IC 6-1.1-1-22.5. As added by Acts 1981, P.L.57, SEC.37. Amended by P.L.60-1988,
SEC.23; P.L.82-1995, SEC.8; P.L.49-1997, SEC.70.
IC 36-1-11-3 Approval
Sec. 3. (a) This section does not apply to the disposal of real
property under section 5, 5.5, 5.9, or 8 of this chapter.
(b) Disposal of real property under this chapter is subject to the
approval of:
(1) the executive of the political subdivision or agency; or
(2) the fiscal body of the political subdivision or agency, if
there is no executive.
The executive or fiscal body may not approve a disposal of property
without conducting a public hearing after giving notice under
IC 5-3-1. However, in a municipality the executive shall designate a
board or commission of the municipality to give notice, conduct the
hearing, and notify the executive of its recommendation.
(c) Except as provided in section 3.2 of this chapter, in addition,
the fiscal body of a unit must approve:
(1) every sale of real property having an appraised value of fifty
thousand dollars ($50,000) or more;
(2) every lease of real property for which the total annual rental
payments will be twenty-five thousand dollars ($25,000) or
more; and
(3) every transfer of real property under section 14 or 15 of this
chapter. As added by Acts 1981, P.L.57, SEC.37. Amended by Acts 1982,
P.L.208, SEC.2; P.L.331-1985, SEC.1; P.L.330-1985, SEC.3;
P.L.35-1990, SEC.43; P.L.82-1995, SEC.9; P.L.124-1998, SEC.11;
P.L.27-2008, SEC.1.
IC 36-1-11-3.1 Sale of residential real property; disapproval
Sec. 3.1. (a) In addition to any other reason for disapproving a
disposal of property under section 3 of this chapter, the executive of
a consolidated city may disapprove a sale of a tract of residential
property to any bidder who does not by affidavit declare that:
(1) the bidder will reside on that property for at least one (1)
year after the bidder obtains possession of it; and
(2) the bidder is eligible to purchase the property under section
16 of this chapter.
(b) When the executive exercises disapproval under this section,
the property may be sold to the highest bidder who also presents an
affidavit declaring that:
(1) the bidder will reside on that property for a one (1) year
period after the bidder obtains possession; and
(2) the bidder is eligible to purchase the property under section
16 of this chapter. As added by Acts 1981, P.L.306, SEC.1. Amended by P.L.60-1988,
SEC.24.
IC 36-1-11-3.2 Approval of sale, lease, or transfer of real property in certain cities
Sec. 3.2. (a) This section applies to a city having a population of:
(1) more than ninety thousand (90,000) but less than one
hundred five thousand (105,000);
(2) more than thirty-two thousand (32,000) but less than
thirty-two thousand eight hundred (32,800); or
(3) more than seventy-five thousand (75,000) but less than
ninety thousand (90,000).
(b) Notwithstanding section 3(c) of this chapter, the fiscal body
of a city must approve:
(1) every sale of real property having an appraised value of ten
thousand dollars ($10,000) or more;
(2) every lease of real property for which the total annual rental
payments will be five thousand dollars ($5,000) or more; and
(3) every transfer of real property under section 14 or 15 of this
chapter. As added by P.L.124-1998, SEC.12. Amended by P.L.170-2002,
SEC.138.
IC 36-1-11-4 Sale or transfer of real property; procedure
Sec. 4. (a) A disposing agent who wants to sell or transfer real
property must comply with this section, except as permitted by
section 4.1, 4.2, 5, 5.5, 5.7, 5.9, 8, 14, or 15 of this chapter.
(b) The disposing agent shall first have the property appraised by
two (2) appraisers. The appraisers must be:
(1) professionally engaged in making appraisals;
(2) licensed under IC 25-34.1; or
(3) employees of the political subdivision familiar with the
value of the property.
The appraisers shall make a joint appraisal of the property.
(c) After the property is appraised, the disposing agent shall
publish a notice in accordance with IC 5-3-1 setting forth the terms
and conditions of the sale and, when subsection (e) is employed, may
engage an auctioneer licensed under IC 25-6.1 to advertise the sale
and to conduct a public auction. The advertising conducted by the
auctioneer is in addition to any other notice required by law and shall
include a detailed description of the property to be sold stating the
key numbers, if any, of the tracts within that property. If the
disposing agent determines that the best sale of the property can be
made by letting the bidders determine certain conditions of the sale
(such as required zoning or soil or drainage conditions) as a
prerequisite to purchasing the property, the disposing agent may
permit the bidders to specify those conditions. The notice must state
the following:
(1) Bids will be received beginning on a specific date.
(2) The sale will continue from day to day for a period
determined by the disposing agent of not more than sixty (60)
days.
(3) The property may not be sold to a person who is ineligible
under section 16 of this chapter.
(4) A bid submitted by a trust (as defined in IC 30-4-1-1(a))
must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
(d) A bid must be open to public inspection. A bidder may raise
the bidder's bid, and subject to subsection (e), that raise takes effect
after the board has given written notice of that raise to the other
bidders.
(e) The disposing agent may also engage an auctioneer licensed
under IC 25-6.1 to conduct a sale by public auction. The auction may
be conducted either at the time for beginning the sale in accordance
with the public notice or after the beginning of the sale. The
disposing agent shall give each bidder who has submitted a bid
written notice of the time and place of the auction.
(f) The disposing agent may, before expiration of the time set out
in the notice, sell the property to the highest and best bidder. The
highest and best bidder must have complied with any requirement
under subsection (c)(4). However, the disposing agent may sell the
property for less than ninety percent (90%) of the appraised value of
the tracts only after having an additional notice of the sale published
in accordance with subsection (c). The disposing agent may reject all
bids.
(g) If the disposing agent determines that, in the exercise of good
business judgment, the disposing agent should hire a broker or
auctioneer to sell the property, the disposing agent may do so and
pay the broker or auctioneer a reasonable compensation out of the
gross proceeds of the sale. However, the disposing agent must still
comply with the procedural requirements of this section. The
disposing agent may hire one (1) of the appraisers as the broker or
auctioneer. As added by Acts 1981, P.L.57, SEC.37. Amended by Acts 1982,
P.L.208, SEC.3; P.L.32-1983, SEC.10; P.L.331-1985, SEC.2;
P.L.330-1985, SEC.4; P.L.60-1988, SEC.25; P.L.336-1989(ss),
SEC.45; P.L.165-1994, SEC.2; P.L.188-2007, SEC.2; P.L.27-2008,
SEC.2.
IC 36-1-11-4.1 Sale or transfer of real property, including provision for leaseback;
notice; bids
Sec. 4.1. (a) This section applies to a disposing agent who wants
to sell or transfer real property, and as a condition of sale, includes
a provision for a leaseback or leaseback with option to repurchase.
(b) The disposing agent shall publish notice in accordance with
IC 5-3-1 setting forth the terms and conditions of the sale. The notice
must state the following:
(1) Bids will be received beginning on a specific date.
(2) The sale will continue from day to day for a period
determined by the disposing agent of not more than sixty (60)
days.
(3) The property may not be sold or transferred to a person who
is ineligible under section 16 of this chapter.
(4) A bid submitted by a trust (as defined in IC 30-4-1-1(a))
must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
(c) A bid must be open to public inspection.
(d) After the period for receiving bids has expired, a disposing
agent may sell the property to the highest and best eligible bidder.
The highest and best eligible bidder must have complied with any
requirement under subsection (b)(4).
(e) IC 36-1-10 does not apply to this section. As added by Acts 1982, P.L.208, SEC.4. Amended by P.L.60-1988,
SEC.26; P.L.336-1989(ss), SEC.46.
IC 36-1-11-4.2 Sale or transfer of real property not acquired through eminent
domain to promote an economic development project or facilitate
compatible land use planning
Sec. 4.2. (a) This section applies to a disposing agent who wants
to sell or transfer real property not acquired through eminent domain
procedures for any of the following purposes:
(1) To promote an economic development project.
(2) To facilitate compatible land use planning.
(b) The disposing agent shall first have the property appraised by
two (2) appraisers. The appraisers must be:
(1) professionally engaged in making appraisals;
(2) licensed under IC 25-34.1; or
(3) employees of the political subdivision familiar with the
value of the property.
The appraisers shall make a joint appraisal of the property.
(c) The disposing agent may:
(1) negotiate a sale or transfer; and
(2) dispose of the real property;
at a value that is not less than the appraised value determined under
subsection (b). As added by P.L.165-1994, SEC.3.
IC 36-1-11-5 Sale of real property having certain value or less; rights of abutting
landowners; procedures
Sec. 5. (a) As used in this section, "abutting landowner" means an
owner of property that:
(1) touches, borders on, or is contiguous to the property that is
the subject of sale; and
(2) does not constitute a:
(A) public easement; or
(B) public right-of-way.
(b) As used in this section, "offering price" means the appraised
value of real property plus all costs associated with the sale,
including:
(1) appraisal fees;
(2) title insurance;
(3) recording fees; and
(4) advertising costs.
(c) If the assessed value of a tract of real property to be sold is
less than fifteen thousand dollars ($15,000), based on the most recent
assessment of the tract or of the tract of which it was a part before it
was acquired, the disposing agent may proceed under this section.
(d) The disposing agent may determine that:
(1) the highest and best use of the tract is sale to an abutting
landowner;
(2) the cost to the public of maintaining the tract equals or
exceeds the estimated fair market value of the tract; or
(3) it is economically unjustifiable to sell the tract under section
4 of this chapter.
(e) Within ten (10) days after the disposing agent makes a
determination under subsection (d), the disposing agent shall publish
a notice in accordance with IC 5-3-1 identifying the tracts intended
for sale by legal description and, if possible, by key number and
street address. The notice must also include the offering price and a
statement that:
(1) the property may not be sold to a person who is ineligible
under section 16 of this chapter; and
(2) an offer to purchase the property submitted by a trust (as
defined in IC 30-4-1-1(a)) must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
At the time of publication of notice under this subsection, the
disposing agent shall send notice by certified mail to all abutting
landowners. This notice shall contain the same information as the
published notice.
(f) The disposing agent shall also have each tract appraised. The
appraiser must be professionally engaged in making appraisals, a
person licensed under IC 25-34.1, or an employee of the political
subdivision who is familiar with the value of the tract. However, if
the assessed value of a tract is less than six thousand dollars
($6,000), based on the most recent assessment of the tract or of the
tract of which it was a part before it was acquired, the disposing
agent is not required to have the tract appraised.
(g) If, within ten (10) days after the date of publication of the
notice under subsection (e), the disposing agent receives an eligible
offer to purchase a tract listed in the notice at or in excess of the
offering price, the disposing agent shall conduct the negotiation and
sale of the tract under section 4(c) through 4(g) of this chapter.
(h) Notwithstanding subsection (g), if within ten (10) days after
the date of publication of the notice under subsection (e) the
disposing agent does not receive from any person other than an
abutting landowner an eligible offer to purchase the tract at or in
excess of the offering price, the disposing agent shall conduct the
negotiation and sale of the tract as follows:
(1) If only one (1) abutting landowner makes an eligible offer
to purchase the tract, then subject to section 16 of this chapter
and without further appraisal or notice, the disposing agent shall
offer to negotiate for the sale of the tract with that abutting
landowner.
(2) If more than one (1) eligible abutting landowner submits an
offer to purchase the tract, the other eligible abutting
landowners who submit offers shall be informed of the highest
offer received and be given an opportunity to submit one (1)
additional offer. The tract shall be sold to the eligible abutting
landowner who submits the highest offer for the tract and who
complies with any requirement under subsection (e)(2).
(3) If no eligible abutting landowner submits an offer to
purchase the tract, the disposing agent may sell the tract to any
person who submits the highest offer for the tract, except a
person who is ineligible to purchase the tract under section 16
of this chapter. As added by Acts 1981, P.L.57, SEC.37. Amended by P.L.47-1983,
SEC.5; P.L.332-1985, SEC.1; P.L.333-1985, SEC.1; P.L.60-1988,
SEC.27; P.L.336-1989(ss), SEC.47; P.L.165-1994, SEC.4;
P.L.170-2003, SEC.17.
IC 36-1-11-5.5 School corporations; sale or transfer of real property or tangible
or intangible personal property or licenses
Sec. 5.5. Notwithstanding IC 5-22-22 and sections 4, 4.1, 4.2, and
5 of this chapter, a disposing agent of a school corporation may sell
or transfer:
(1) real property; or
(2) tangible or intangible personal property, licenses, or any
interest in the tangible or intangible personal property or
licenses that are used in, or related to, the operation of a radio
station by a school corporation;
for no compensation or a nominal fee to a not-for-profit corporation
created for educational or recreational purposes unless the
corporation is subject to section 16 of this chapter. As added by Acts 1982, P.L.208, SEC.5. Amended by P.L.215-1986,
SEC.1; P.L.60-1988, SEC.28; P.L.342-1989(ss), SEC.36;
P.L.165-1994, SEC.5; P.L.49-1997, SEC.71. IC 36-1-11-5.6 Sale or transfer of property to a nonprofit corporation
Sec. 5.6. Notwithstanding IC 5-22-22 and sections 4, 4.1, 4.2, and
5 of this chapter, a disposing agent of a county having a population
of more than fifty-five thousand (55,000) but less than sixty-five
thousand (65,000) may sell or transfer:
(1) real property; or
(2) tangible or intangible personal property, licenses, or any
interest in the tangible or intangible personal property;
for no compensation or a nominal fee to a nonprofit corporation
created for agricultural, educational, or recreational purposes. As added by P.L.10-2001, SEC.1. Amended by P.L.170-2002,
SEC.139.
IC 36-1-11-5.7 Sale or transfer of real property or tangible or intangible personal
property or licenses to volunteer fire department, fire protection
district, or fire protection territory
Sec. 5.7. (a) As used in this section, "fire department" refers to
any of the following:
(1) A volunteer fire department (as defined in IC 36-8-12-2).
(2) The board of fire trustees of a fire protection district
established under IC 36-8-11.
(3) The provider unit of a fire protection territory established
under IC 36-8-19.
(b) Notwithstanding IC 5-22-22 and sections 4, 4.1, 4.2, and 5 of
this chapter, a disposing agent of a political subdivision may sell or
transfer:
(1) real property; or
(2) tangible or intangible personal property, licenses, or any
interest in the tangible or intangible personal property or
licenses;
without consideration or for a nominal consideration to a fire
department for construction of a fire station or other purposes related
to firefighting. As added by P.L.188-2007, SEC.3. Amended by P.L.128-2008,
SEC.6.
IC 36-1-11-5.9 Sale or transfer of real property acquired by tax default; rights of
abutting landowners; procedures
Sec. 5.9. (a) As used in this section, "abutting landowner" has the
meaning set forth in section 5(a) of this chapter.
(b) As used in this section, "real property acquired by tax default"
means the following:
(1) Real property for which a county holds a tax deed issued
under IC 6-1.1-25.
(2) Real property acquired by a political subdivision from a
county under section 8 of this chapter if at the time of transfer
the county held a tax deed issued under IC 6-1.1-25 for the real
property.
(c) Notwithstanding sections 4, 4.1, 4.2, and 5 of this chapter, and
subject to the procedures described in subsections (d) and (e), a
disposing agent of a political subdivision may sell or transfer real
property acquired by tax default without consideration or for a
nominal consideration to an abutting landowner.
(d) A disposing agent who desires to transfer real property
acquired by tax default to an abutting landowner shall send notice by
certified mail to all abutting landowners. The notice must identify the
tracts intended for sale by legal description and, if possible, by key
number and street address. The notice must also include a statement
that:
(1) the disposing agent is authorized to transfer the property for
no consideration or for nominal consideration;
(2) the property may not be sold to a person who is ineligible
under section 16 of this chapter; and
(3) an offer to purchase the property submitted by a trust (as
defined in IC 30-4-1-1(a)) must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
(e) Not earlier than fourteen (14) days after a disposing agent
sends the notice described in subsection (d) to the abutting
landowners of a tract, the disposing agent shall conduct the
negotiation and sale of the tract under this section as follows:
(1) If only one (1) eligible abutting landowner makes an offer
to purchase the tract, then subject to section 16 of this chapter
and without appraisal or further notice, the disposing agent shall
offer to negotiate for the sale of the tract with that abutting
landowner.
(2) If more than one (1) eligible abutting landowner submits an
offer to purchase the tract, the other eligible abutting
landowners who submit offers shall be informed of the highest
offer received and be given an opportunity to submit one (1)
additional offer. The tract shall be sold to the eligible abutting
landowner who submits the highest offer for the tract and who
complies with any requirement under subsection (d)(3). As added by P.L.27-2008, SEC.3.
IC 36-1-11-6
Repealed
(Repealed by P.L.49-1997, SEC.86.)
IC 36-1-11-7 Exchange of property with persons other than governmental
entity; procedure
Sec. 7. (a) A disposing agent who exchanges property must
proceed under this section, except as permitted by section 8 of this
chapter.
(b) An exchange may be made with a person who is:
(1) not a governmental entity; and
(2) eligible under section 16 of this chapter;
only after advertisement following as nearly as practical the
procedure prescribed by section 4 of this chapter, with the property
the disposing agent conveys to be partial or full payment for the
property the disposing agent receives. As added by Acts 1981, P.L.57, SEC.37. Amended by P.L.60-1988,
SEC.29.
IC 36-1-11-8 Exchange of property with governmental entity
Sec. 8. A transfer or exchange of property may be made with a
governmental entity upon terms and conditions agreed upon by the
entities as evidenced by adoption of a substantially identical
resolution by each entity. Such a transfer may be made for any
amount of real property, cash, or other personal property, as agreed
upon by the entities. As added by Acts 1981, P.L.57, SEC.37.
IC 36-1-11-9 Trade or exchange as part of purchase price of new property
Sec. 9. Whenever a disposing agent purchases new property with
a condition that property of a similar nature is to be traded in or
exchanged as part of the purchase and in reduction of the purchase
price, the exchange or trade-in may be made without compliance
with section 7 of this chapter but must comply with section 16 of this
chapter. As added by Acts 1981, P.L.57, SEC.37. Amended by P.L.60-1988,
SEC.30.
IC 36-1-11-10 Lease of property; procedure
Sec. 10. (a) A disposing agent may lease property rather than sell,
transfer, or exchange it under this chapter only if the disposing agent
determines that a lease rather than a sale, transfer, or exchange would
be in the best interest of the disposing agent's political subdivision or
agency and the public. Except as provided in section 12 of this
chapter, the disposing agent must proceed under this section in
leasing property.
(b) The disposing agent shall first have the property appraised in
the manner prescribed in section 4(b) of this chapter, except that the
appraisers shall determine the fair market rental value of the
property.
(c) The disposing agent shall receive bids in the manner
prescribed in section 4 of this chapter and lease the property to the
highest and best bidder. However, the disposing agent may lease the
property for less than ninety percent (90%) of the appraised fair
market rental value only after having an additional notice of the lease
published in accordance with section 4(c) of this chapter.
(d) The disposing agent shall determine the terms and conditions
of any lease under this section, which may include options to renew
and options to purchase. The property may not be leased to a person
who is ineligible under section 16 of this chapter.
(e) The terms of a lease with option to purchase may provide that
all or part of the rental payments under the lease apply to the
purchase price. The purchase price must be equal to at least the
minimum sale price determined under section 4(f) of this chapter.
(f) Property owned by a political subdivision or agency may be
leased for a term longer than three (3) years if the lease is approved
by the fiscal body of the political subdivision. As added by Acts 1981, P.L.57, SEC.37. Amended by P.L.339-1983,
SEC.1; P.L.60-1988, SEC.31.
IC 36-1-11-11 Execution of deed or other instrument
Sec. 11. Whenever:
(1) there is a dispute concerning the interest in any property of
a political subdivision, and the executive considers the dispute
not frivolous; or
(2) it would facilitate the establishment of title to any property;
a deed or other instrument may be executed on behalf of the political
subdivision to a person who is eligible to receive the deed or
instrument under section 16 of this chapter for any consideration that
the disposing agent considers fair and in the public interest. As added by Acts 1981, P.L.57, SEC.37. Amended by P.L.60-1988,
SEC.32.
IC 36-1-11-12 Lease of property; alternative procedure
Sec. 12. The following procedure may be used instead of that in
section 10 of this chapter if the disposing agent makes a written
determination (which must include the disposing agent's reasons) that
the use of section 10 of this chapter is not feasible, and authorization
to use this procedure is granted by the executive of the political
subdivision or agency:
(1) Proposals to develop specifications shall be solicited
through a request for proposals, which must include all of the
following:
(A) The factors or criteria that will be used in evaluating the
proposals, including a statement that:
(i) the property may not be leased to a person who is
ineligible under section 16 of this chapter; and
(ii) a proposal submitted by a trust (as defined in
IC 30-4-1-1(a)) must identify each beneficiary of the trust
and each settlor empowered to revoke or modify the trust.
(B) A statement concerning the relative importance of price
and the other evaluation factors.
(C) A statement concerning whether the proposal must be
accompanied by a certified check or other evidence of
financial responsibility.
(D) A statement concerning whether discussions may be
conducted with the offerors for the purpose of clarification
to assure full understanding of, and responsiveness to, the
solicitation requirements.
(2) Notice of the request for proposals shall be given by
publication in accordance with IC 5-3-1.
(3) As provided in the request for proposals, discussions may be
conducted with the offerors for the purpose of clarification to
assure full understanding of, and responsiveness to, the
solicitation requirements.
(4) Eligible offerors must be accorded fair and equal treatment
with respect to any opportunity for discussion and revisions of
proposals.
(5) After the procedures outlined in this section have been
completed, the disposing agent shall make a determination as to
the most appropriate response to the request for proposals and
shall dispose of the subject property in accordance with that
response.
(6) Access to the proposals under this chapter shall be
determined in accordance with the provisions of IC 5-23-7.
(7) The person submitting the successful proposal is not
responsible for the requirements set forth in IC 5-22 with regard
to the purchase of supplies if the purchase of supplies was
included within the proposal or the supplies are not paid for
with public funds. As added by P.L.339-1983, SEC.2. Amended by P.L.60-1988,
SEC.33; P.L.336-1989(ss), SEC.48; P.L.82-1995, SEC.10;
P.L.49-1997, SEC.72.
IC 36-1-11-13 Restrictions on lease of county-owned property
Sec. 13. Notwithstanding any other law, a disposing agent for a
county may not lease county-owned property at a rate that deviates
more than five percent (5%) from the average square footage rate
charged for similar property in that county. As added by P.L.38-1984, SEC.3.
IC 36-1-11-14 Gift of tract; reconveyance
Sec. 14. If a tract was originally transferred to a political
subdivision as a gift and public funds have not been expended to
improve the property since the original transfer, the disposing agent
may convey it back to the original grantor or the grantor's successors
with their consent without consideration upon a determination by the
disposing agent that:
(1) the property is surplus; and
(2) the original grantor or the grantor's successors are eligible
to receive the tract under section 16 of this chapter. As added by P.L.331-1985, SEC.3. Amended by P.L.60-1988,
SEC.34. IC 36-1-11-15 Tract transferred as gift by not-for-profit corporation or
organization; reconveyance
Sec. 15. If a tract was originally transferred to a political
subdivision as a gift by a not-for-profit corporation or organization,
the disposing agent may convey it back to the original grantor or the
grantor's successors with their consent without consideration upon a
determination by the disposing agent that:
(1) the property is surplus; and
(2) the original grantor or the grantor's successors are eligible
to receive the tract under section 16 of this chapter. As added by P.L.330-1985, SEC.5. Amended by P.L.60-1988,
SEC.35.
IC 36-1-11-16 Purchase, receipt, or lease of property by ineligible persons;
eligible persons; effect of ineligibility
Sec. 16. (a) This section applies to the following:
(1) A person who owes delinquent taxes, special assessments,
penalties, interest, or costs directly attributable to a prior tax
sale on a tract of real property listed under IC 6-1.1-24-1.
(2) A person who is an agent of the person described in
subdivision (1).
(b) A person subject to this section may not purchase, receive, or
lease a tract that is offered in a sale, exchange, or lease under this
chapter.
(c) If a person purchases, receives, or leases a tract that the person
was not eligible to purchase, receive, or lease under this section, the
sale, transfer, or lease of the property is void and the county retains
the interest in the tract it possessed before the sale, transfer, or lease
of the tract. As added by P.L.60-1988, SEC.36. Amended by P.L.342-1989(ss),
SEC.37; P.L.98-2000, SEC.18.
IC 36-1-11-17 Terms of reconveyance or return
Sec. 17. If property disposed of under this chapter is to be
reconveyed or automatically returned to the political subdivision or
an agency of a political subdivision that disposed of the property, the
terms of the reconveyance or return shall be as agreed to before the
disposal. If the terms of the reconveyance are not set forth before the
disposal, the political subdivision shall obtain at least two (2)
appraisals and pay not more than the average of the two (2)
appraisals. As added by P.L.82-1995, SEC.11.
