Indiana Code
Chapter 11. Disposal of Real or Personal Property
36-1-11-5. Sale of Property Having Certain Value or Previously Part of Right-of-Way; 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) The disposing agent may proceed under this section if either of the following applies:
(1) The assessed value of a tract of real property to be sold is less than:
(A) except as provided in clause (B) and subsection (i), fifteen thousand dollars ($15,000); or
(B) an amount greater than fifteen thousand dollars ($15,000) that is specified in an ordinance or a resolution adopted by the fiscal body of the political subdivision under subsection (i);
based on the most recent assessment of the tract or of the tract of which it was a part before it was acquired.
(2) If the property has not been assessed and the property was previously part of a public right-of-way.
(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.
(i) The fiscal body of a political subdivision may adopt an ordinance (in the case of a county or municipality) or a resolution (in the case of any other political subdivision) to increase the threshold that applies under subsection (c)(1) to an amount greater than fifteen thousand dollars ($15,000).
[Pre-Local Government Recodification Citation: 18-4-5-6 part.]
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; P.L.188-2011, SEC.4; P.L.28-2017, SEC.2.

Structure Indiana Code

Indiana Code

Title 36. Local Government

Article 1. General Provisions

Chapter 11. Disposal of Real or Personal Property

36-1-11-1. Application of Chapter

36-1-11-2. Definitions

36-1-11-3. Approval

36-1-11-3.1. Sale of Residential Real Property; Disapproval

36-1-11-3.2. Approval of Sale, Lease, or Transfer of Real Property in Certain Cities

36-1-11-4. Sale or Transfer of Real Property; Procedure

36-1-11-4.1. Sale or Transfer of Real Property, Including Provision for Leaseback; Notice; Bids

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

36-1-11-4.3. Public Easement or Right-of-Way

36-1-11-5. Sale of Property Having Certain Value or Previously Part of Right-of-Way; Rights of Abutting Landowners; Procedures

36-1-11-5.5. School Corporations; Sale or Transfer of Real Property or Tangible or Intangible Personal Property or Licenses

36-1-11-5.6. Sale or Transfer of Property to a Nonprofit Corporation

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

36-1-11-5.9. Sale or Transfer of Real Property Acquired by Tax Default; Rights of Abutting Landowners; Procedures

36-1-11-6. Repealed

36-1-11-7. Exchange of Property With Persons Other Than Governmental Entity; Procedure

36-1-11-8. Exchange of Property With Governmental Entity

36-1-11-9. Trade or Exchange as Part of Purchase Price of New Property

36-1-11-10. Lease of Property; Procedure

36-1-11-10.5. Lease of a Parkway Strip, Sidewalk, Tree Row, or Verge

36-1-11-11. Execution of Deed or Other Instrument

36-1-11-12. Lease of Property; Alternative Procedure

36-1-11-13. Restrictions on Lease of County-Owned Property

36-1-11-14. Gift of Tract; Reconveyance

36-1-11-15. Tract Transferred as Gift by Not-for-Profit Corporation or Organization; Reconveyance

36-1-11-16. Bid, Purchase, Receipt, or Lease of Property by Ineligible Persons; Effect of Ineligibility

36-1-11-17. Terms of Reconveyance or Return

36-1-11-18. School Corporations in Laporte County; Transfer to Governmental Agency