IN Course Cards

To determine if an item is a fixture, use the acronym M.A.R.I.A.

M - Method of Attachment (Permanent?)
A - Adaptability (built for specific room?)
R - Relationship of the parties
I - Intention of the parties (Was the intention for it to be permanent?)
A - Agreement of parties (final agreements in contract)

What is the "Bundle of Rights" in real estate?

Rights given to property owners that allow them the right to possess, use, transfer, exclude, or encumber their property.

What are surface rights?

Rights that include control over the ground, natural items (like grass, shrubs, and trees), and any improvements made to the land.

What are "improvements" to land?

Additions made to the land, such as buildings (e.g., a duplex) or recreational facilities (e.g., a swimming pool).

When a property owner leases their property to a tenant, do they give up all of their ownership rights?

No. Tenants are granted limited rights of occupancy and use, but they cannot take away the fundamental rights of the property owner.

What three main factors determine water rights for a property?

1) Who controls the water (state or government agency), 2) The condition of the water (moving or still), and 3) Whether the water is navigable.

Who generally owns the water rights to a pond that is entirely enclosed within a single property?

The property owner possesses all rights to that water.

For lakefront properties, up to what point does the owner usually own the land?

Up to the high-water mark.

Why is it crucial for a real estate professional to know and convey correct water rights when selling a property (including wells)?

Because water rights and usage differ based on state laws and specific property characteristics, and must be accurately transferred via sale or lease.

What is a determinable fee?

An ownership interest that automatically terminates when a stated condition is violated.

What happens when a condition is not met in a determinable fee?

Ownership terminates automatically/immediately.

What is a subject-to-condition defeasible fee?

An ownership interest where the grantor has the option to terminate the owner’s interest if a condition is violated.

What is the key difference between a determinable fee and a subject-to-condition fee?

Determinable fee: violation → ownership automatically ends.
Subject-to-condition: violation → grantor may choose whether to terminate ownership.

What are dower and curtesy?

Historical statutory life estates based on gender—dower traditionally protected a wife’s interest in her husband’s property, while curtesy protected a husband’s interest in his wife’s property. They are generally obsolete and are not recognized as current Indiana statutory life estates.

What is the important modern concept to know instead of dower and curtesy?

Homestead protection/exemptions, which provide certain protections and tax benefits for a person’s principal residence.

What is an Indiana homestead for property-tax purposes?

An individual’s principal place of residence located in Indiana, generally consisting of the dwelling plus up to 1 acre immediately surrounding it and certain residential improvements.

Does an Indiana homestead automatically receive the property-tax homestead deduction just because the owner lives there?

No. This is an important correction to the lesson. The homeowner generally must claim/file for the homestead deduction through the county auditor. Indiana provides an official Homestead Deduction form.

Who administers Indiana’s homestead property-tax deduction?

The county auditor records and applies the deduction for a qualifying property.

What is the purpose of Indiana’s homestead deduction?

It reduces the property’s assessed value subject to property taxation, potentially lowering the owner’s property-tax bill.

What is the Indiana Homestead Standard Deduction for the 2026 assessment year?

$40,000. Indiana is phasing down the standard deduction: $48,000 for 2025, $40,000 for 2026, $30,000 for 2027, $20,000 for 2028, $10,000 for 2029, and $0 beginning with the 2030 assessment year.

What happens to Indiana’s Homestead Standard Deduction beginning in 2030?

The standard deduction becomes $0 beginning with the 2030 assessment year.

What is the Indiana Supplemental Homestead Deduction?

It is an additional deduction applied after the standard homestead deduction and before other applicable deductions, exemptions, or credits.

What is the Indiana Supplemental Homestead Deduction percentage for taxes first due in 2026?

40% of the assessed value remaining after the standard deduction, subject to the statutory limitations.

How does the Supplemental Homestead Deduction change after 2026?

2026: 40% → 2027: 46% → 2028: 52% → 2029: 57% → 2030: 62% → 2031 and thereafter: 66.7%, subject to the statutory limits.

How does a property-tax deduction work?

It reduces the property’s assessed value before the tax rate is applied.

Is Indiana’s homestead deduction the same thing as a bankruptcy/creditor homestead exemption?

No. These are separate concepts. The property-tax homestead deduction reduces assessed value for taxation, while the creditor/bankruptcy homestead exemption protects a specified amount of property from certain creditors.

What is Indiana’s homestead exemption for certain creditor/bankruptcy purposes?

Indiana law provides an exemption for real or personal property constituting the debtor’s personal or family residence, subject to the statutory amount and applicable rules. The statutory amount listed in IC 34-55-10-2 is $15,000, while exemption amounts can be adjusted by administrative rule.

Does Indiana’s homestead exemption prevent a mortgage lender from foreclosing?

No. Property voluntarily pledged as collateral for a secured debt is not protected by the exemption to the extent of the secured debt.

Why can a mortgage lender foreclose despite a homestead exemption?

A mortgage is a voluntary lien/security interest. Indiana law specifically provides that property subject to a voluntarily granted lien is not exempt to the extent of the balance secured by that lien.

Can a married couple generally claim multiple Indiana homestead deductions on multiple primary residences?

No. Indiana generally limits a married couple to one homestead deduction for their qualifying primary residence.

Is “declared homestead” the main Indiana concept you should memorize from this lesson?

No. Be careful with this terminology. The Indiana property-tax rules focus on a qualifying homestead/principal residence and the homestead deduction, which is claimed through the county auditor. The lesson’s description of automatically qualifying and then “declaring” a homestead after sale is not a good description of Indiana’s current property-tax system.

What is the Indiana homestead property-tax cap?

Indiana’s property-tax system generally limits taxes on a qualifying homestead to 1% of gross assessed value, subject to the applicable constitutional/statutory rules.

What is the difference between a deduction and a credit for Indiana property taxes?

A deduction reduces assessed value before the tax calculation; a credit reduces the tax bill itself after the tax liability is calculated.

Why must sellers disclose the corporation's bylaws when selling a cooperative?

To comply with state and federal laws

What is the main difference between joint tenancy and tenancy in common?

The right of survivorship

Why is it important to disclose the master deed, CC&Rs, and HOA financials when selling a condominium?

To provide potential buyers with pertinent information about ownership

Can a tenancy in common be created at different times for each co-owner?

Yes

What is included in the monthly "maintenance fee" paid by cooperative shareholders?

Property taxes, building maintenance, and operating expenses

Black Enterprises, LLC purchases a commercial building for its new headquarters. What type of ownership does Black Enterprises, LLC have in the property?

Tenancy in severalty

This is the right to use multiple adjoining owner's properties.

Easement in gross

This is the right of one property owner to use an adjoining property owner's property.

Easement appurtenant

This is the right to use another person's property for a specific purpose.

Easement

COVENANTS, CONDITIONS, AND RESTRICTIONS (CC&RS)

Commonly associated with condominium buildings, Affect multiple properties and all future owners. Aim to maintain uniformity and keep a cohesive look.

Which tenement has the right to use the other party's property in an easement appurtenant?

Dominant tenement

Tom notices that his neighbor's new pool appears to extend onto his property. What is the first step Tom should take?

Hire a surveyor to confirm the encroachment

Michael is considering buying a property, but the seller mentions a neighbor has been using the driveway without permission. What potential claim could this indicate?

Adverse possession

What happens to an easement appurtenant if the dominant and servient tenement properties merge?

The easement is no longer needed

Can a property owner be compensated for an encroachment on their land?

Yes, the encroaching property owner must pay rent for the use of the land

What is the most common type of implied easement?

Easement by prescription

voluntary alienation

when an owner transfers ownership of their property voluntarily or of their own free will.

involuntary alienation

if an owner is forced to sell the property or if the property is transferred due to other reasons such as foreclosure or dying intestate. 

the steps involved in foreclosure

a notice of default, a notice of the foreclosure sale, and finally, the public auction sale.

The last step in a foreclosure is typically a public foreclosure auction sale. Ideally, the property will sell at auction for a price acceptable to the lender. In situations where this does not happen and the property does not sell, the lender takes ownership of the property as a

“real estate owned property,” also known as an REO property.

deed in lieu of foreclosure

when agreed to by a property owner and lender, allows the borrower to transfer ownership to the lender in exchange for removing the debt obligation.

deficiency judgment

tool that allows a lender to recoup their losses from a mortgage loan if the max foreclosure bid at auction was not enough to cover the outstanding balance on the loan, or after a short sale.

probate

the courts giving executors or administrators legal power to transfer assets from deceased owners to heirs and beneficiaries through valid deeds.

In Indiana, there are specific conditions that must be met for an oral will to be considered valid

• There is an immediate danger of death.

• It is witnessed or heard by at least two third parties who are not beneficiaries.

• One of the witnesses records the will in writing within 30 days of the incident.

• The oral will disposes of property valued at no more than $1,000.

Does Indiana recognize holographic wills (wills written and signed by the testator without witnesses)?

No, Indiana does not recognize holographic wills.

What are the beneficiaries called who inherit property through a will?

Devisees

What is the main difference between the foreclosure process in a lien theory state and a title theory state?

The involvement of the court system

A homeowner is relocating for a new job opportunity and needs to sell their property quickly. The property value has decreased since the purchase, and the mortgage balance is higher than the current market value. What option might the lender consider to avoid a lengthy foreclosure process?

Accepting a deed in lieu of foreclosure

Emily has defaulted on her mortgage loan. What right does the lender have based on the terms of the mortgage contract?

To foreclose on the property

What is the main disadvantage for a property owner who agrees to a deed in lieu of foreclosure

They will end up with no money from the transaction

After a short sale, a property sold for $250,000, but the outstanding loan balance was $300,000. The lender filed for a deficiency judgment to recover the $50,000 difference. What can the lender do if the judgment is approved?

Garnish the borrower's wages or place a lien on their other assets

A homeowner has fallen behind on their mortgage payments due to a job loss. The property value has decreased, and they owe more than the property is worth. What might the lender consider to avoid foreclosure?

Accepting a deed in lieu of foreclosure

In what document are borrowers likely to find the specific details of the foreclosure process for their property?

The mortgage contract

A borrower is unable to make their mortgage payments and decides to voluntarily give the property to the lender. What type of property does this become?

An REO property

What is the process and specific statutory requirements for recording a real estate deed in Indiana?

1. The document must be properly acknowledged by having the parties sign in front of a notary public.

2. The names of the individuals executing the document, witnesses, and notary must be printed, stamped, or typed beneath their signatures.

3. The name of the preparer must be included (e.g., “This instrument prepared by ….”).

4. The notary's county residence and commission expiration must be included.

5. If transferring for taxation purposes, an endorsement from the county auditor is required before recording.

6. Finally, it is submitted for recording in the county where the property is located to provide constructive notice.

XYZ Corporation is purchasing a warehouse from 123 Industries. Who should sign the deed as the grantee?

The deed does not require the grantee's signature

If an error is discovered in a recorded deed, how can it be corrected?

By executing and recording a new deed

Is the grantee required to sign the deed?

Sometimes, but not required

Who must sign the deed for a valid transfer of ownership?

Only the grantor

Who is responsible for recording a deed after a property transaction?

The grantee

Who is responsible for preparing the deed in a typical real estate transaction?

The grantor

What is a possible consequence of an unrecorded deed?

The property may have multiple owners

Which of the following is an example of a defect that a title examiner might identify during a title review?

Erroneous surveys

Which of the following is not typically covered by a basic title insurance policy?

Homeowner's insurance claims

Emily is purchasing a home and the title search reveals an existing easement on the property. What is the most likely outcome regarding title insurance?

The title company will issue a policy with an exception for claims related to the easement

Lisa's title search reveals a shared driveway agreement. Where might this information be documented?

Opinion of Title

Emily is purchasing a home and the title search reveals a judgment against the property. What document would likely address this issue?

Opinion of Title

What is the primary reason for prorating expenses at closing instead of having the buyer and seller settle them independently?

To simplify the closing process

Which of the following changes to the Closing Disclosure would trigger a new 3-day waiting period?

Addition of a prepayment penalty

Which of the following changes to the Closing Disclosure would not require a new 3-day waiting period?

Correction of a typo in the buyer's address

A ___ owner is one that has a will in place and has stated who they would like their property to go to.

Testate

2. An owner who has died without leaving behind a valid will is known to have died ___.

Intestate

What is the main benefit of following the more restrictive provision when both public and private restrictions apply to a property?

It ensures that the property is used in a manner consistent with the strictest standards

What is the main difference between a deed restriction and a zoning ordinance?

Deed restrictions are imposed by property owners, while zoning ordinances are imposed by the government

What type of restriction is more likely to be found in CC&Rs for a condominium complex?

Pet restrictions or prohibitions

How do property owners in a common interest development agree to follow HOA rules?

By purchasing a property within the development

Can restrictive covenants or CC&Rs be removed or modified after they are established?

Yes, if the property owners come to an agreement

What is the primary reason for following the more restrictive provision when both public and private restrictions apply to a property?

To maintain the strictest standards for property use and development

A buyer intends to purchase a property in a mixed-use zone and operate a nightclub, but the zoning only allows retail and office uses. What should their agent suggest?

Advise the buyer to find a property zoned for entertainment uses

Which of the following is not true about the creation and enforcement of zoning ordinances?

They are typically created and enforced by states

What can a property owner do if their zoning variance request is denied?

Reapply for the variance with additional evidence of hardship

Can a village adopt its own building code separate from the state code?

Yes, villages can adopt their own building code

What is the primary reason a real estate agent should not give advice on zoning matters?

They are not trained in zoning law

As per Indiana Code IC 25-34.1-10-9.5, an agency relationship is formed when a licensed real estate professional, known as a broker or agent, formally ______

represents a client, often called the principal, during a real estate transaction.

Real estate agents owe their clients five key fiduciary duties (COALD)

confidentiality, obedience, accounting, loyalty, and disclosure.

a brokerage representing both the buyer and seller in a transaction in the state of IN is referred to as ____

limited agency

In order for limited agency to be allowed or prohibited, an IN brokerage has to develop a ____ that addresses it.

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