(a) This section applies to all Closing Agents (as defined herein) in transactions in which the City acquires an interest in real property (whether fee simple or easement), except for transactions between governmental entities, property acquisitions resulting from a decision by a court of competent jurisdiction, and transactions in which the Mayor or City Attorney determines in writing that the best interests of the City are served by the use of other procedures.
(b) The Closing Agent is the person who is responsible for closing a transaction subject to this section. Unless otherwise set forth in writing, the Closing Agent shall be determined in the following order:
(1) The disbursing title or escrow company, if one exists;
(2) The person designated as the Closing Agent in a designation agreement, if any;
(3) The person listed as the Closing Agent in a HUD settlement statement, if any;
(4) The third party (other than an attorney) hired by the City to acquire the real property interest, if any;
(5) The attorney representing the City who is present at the closing, if any;
(6) The attorney representing the City who prepares or reviews the transfer documents, if any; or
(7) The City Attorney.
(c) Unless otherwise agreed to by the Mayor or the City Attorney in writing, the Closing Agent is responsible for the preparation of all applicable closing documents. These closing documents must be approved by the Mayor or the City Attorney prior to closing and a stamped copy of all documents submitted to the County must be delivered to the Clerk's Office. Closing documents include, but are not limited to, the following:
(1) Closing or Settlement Statement;
(2) Deed - with proper recordation;
(3) Vendor's Affidavit;
(4) Non-Foreign Certificate;
(5) Indiana Sales Disclosure Form;
(6) Seller's Residential Disclosure Form;
(7) Indiana Responsible Property Transfer Law Documents;
(8) Easement(s);
(9) Lease(s);
(10) Form 1099-S;
(11) Copy of Buyer's Report.
(d) Unless otherwise set forth in writing by the Mayor or City Attorney, the Closing Agent is responsible for ensuring the payment of all real estate taxes and assessments that, as of the closing date, constitute a lien against any real property being acquired and subject to the section, whether or not such real estate taxes and assessments are then due and payable. Such payment can include establishing an escrow account for the future payment of the real estate taxes and assessments. If the amount of real estate taxes and assessments is not known at closing, the escrow account shall be equal to 110% of the real estate tax rate and assessments existing on the closing date, or such other amount as the City and the seller may agree in writing. At closing, the Closing Agent shall certify to the City Attorney, in writing, that all such real estate taxes and assessments described herein have been paid or the required escrow account has been established and funded. To the extent allowed under applicable law, the Closing Agent shall indemnify the City against all costs, expenses, and damages incurred by the City for real estate taxes and assessments that become an obligation of the City or a lien against real property acquired by the City because such real estate taxes and assessments were not paid as provided herein.
(e) In addition to the responsibilities otherwise set forth herein, the Closing Agent is responsible for ensuring the payment and/or release of all liens, encumbrances and expenses applicable to any real property acquired by the City and subject to this section, except for those that the City has agreed in writing to accept. At closing, the Closing Agent shall certify in writing to the City Attorney that all such liens, encumbrances and expenses not agreed to and accepted by the City have been paid and/or released. To the extent allowed under applicable law, the Closing Agent shall indemnify the City against all costs, expenses and damages incurred by the City for all liens, encumbrances and expenses which are not paid, released or accepted by the City as provided herein.
(f) The Closing Agent shall conduct the closing and cause all appropriate documents to be recorded and/or filed with the applicable County Recorder and all other appropriate public bodies or entities within ten calendar days immediately following the closing date. The Closing Agent shall file the Form 1099-S as required by applicable federal law. The Closing Agent shall deliver a copy of all the closing documents and a file-stamped copy of all recorded and/or filed documents to the City Attorney within ten calendar days of the closing date, with a copy of the recorded documents to the
Clerk’s Office.
(Ord. D-2027-11, As Amended, 2-7- 11; Ord. D-2067-11, 11-7-11; Ord. D-2505-19, 12-16-19)