Indiana Code - Taxation - Title 6, Section 6-1.1-12-43

Information provided by closing agents to customers in residential

financing transactions; penalty; compliance

Sec. 43. (a) For purposes of this section:
(1) "benefit" refers to:
(A) a deduction under section 1, 9, 11, 13, 14, 16, 17.4, 26,
29, 31, 33, or 34 of this chapter; or
(B) the homestead credit under IC 6-1.1-20.9-2;
(2) "closing agent" means a person that closes a transaction;
(3) "customer" means an individual who obtains a loan in a
transaction; and
(4) "transaction" means a single family residential:
(A) first lien purchase money mortgage transaction; or
(B) refinancing transaction.
(b) Before closing a transaction after December 31, 2004, a
closing agent must provide to the customer the form referred to in
subsection (c).
(c) Before June 1, 2004, the department of local government
finance shall prescribe the form to be provided by closing agents to
customers under subsection (b). The department shall make the form
available to closing agents, county assessors, county auditors, and
county treasurers in hard copy and electronic form. County assessors,
county auditors, and county treasurers shall make the form available
to the general public. The form must:
(1) on one (1) side:
(A) list each benefit;
(B) list the eligibility criteria for each benefit; and
(C) indicate that a new application for a deduction under
section 1 of this chapter is required when residential real
property is refinanced;
(2) on the other side indicate:
(A) each action by; and
(B) each type of documentation from;
the customer required to file for each benefit; and
(3) be printed in one (1) of two (2) or more colors prescribed by
the department of local government finance that distinguish the
form from other documents typically used in a closing referred
to in subsection (b).
(d) A closing agent:
(1) may reproduce the form referred to in subsection (c);
(2) in reproducing the form, must use a print color prescribed by
the department of local government finance; and
(3) is not responsible for the content of the form referred to in
subsection (c) and shall be held harmless by the department of
local government finance from any liability for the content of
the form.
(e) A closing agent to which this section applies shall document
its compliance with this section with respect to each transaction in
the form of verification of compliance signed by the customer.
(f) A closing agent is subject to a civil penalty of twenty-five
dollars ($25) for each instance in which the closing agent fails to
comply with this section with respect to a customer. The penalty:

(1) may be enforced by the state agency that has administrative
jurisdiction over the closing agent in the same manner that the
agency enforces the payment of fees or other penalties payable
to the agency; and
(2) shall be paid into the property tax replacement fund.

A closing agent is not liable for any other damages claimed by a
customer because of the closing agent's mere failure to provide the
appropriate document to the customer.
(g) The state agency that has administrative jurisdiction over a
closing agent shall:
(1) examine the closing agent to determine compliance with this
section; and
(2) impose and collect penalties under subsection (f).
As added by P.L.64-2004, SEC.3.

Last modified: May 28, 2006