HomeMy WebLinkAboutD-2027-11 Add Sec.2-184.3 Closing Agent Responsibility/As AmendedORDINANCE D- 2027 -11
AS AMENDED
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA,
ADDING CHAPTER 2, ARTICLE 5, SECTION 2 -184.3 TO THE CARMEL CITY CODE
WHEREAS, the City of Carmel, Indiana "City is annually engaged in numerous transactions
involving the public acquisition of a fee simple or easement interest in real property; and
WHEREAS, it is in the public interest to establish City real property transaction closing
procedures to ensure that a closing agent is designated and responsible for determining that all necessary
documents are prepared and all known liens extinguished or accounted for prior to the City's acquisition
of such real property or property interests.
NOW, THEREFORE, IT IS AGREED AND ORDAINED by the Common Council of the City
of Carmel, Indiana, as follows:
Section 1: The foregoing Recitals are incorporated herein by this reference.
SPONSOR: Councilor Snyder
Section 2: Chapter 2, Article 5, Section 2 -184.3 should be and the same is hereby added to the
Carmel City Code and shall read as follows:
"Sec. 2 -184.3 Closing Agent Responsibilities; Certain Real Estate Transactions.
(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.
Page One of Four Pages As Amended 1-21-11 Version A
This Ordinance was prepared by Douglas C. Haney, Carmel City Attorney, and revised by the Finance Committee.
ZIE Bass1My Dccumen1s1ORDINANCESWmen4Code120111D -2027.11 AMENDED 1 -21 -11 ADD Se02-184,3 RE CLOSING AGENT Finance Revs.doc1125'20111021 AM
(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.
SPONSOR: Councilor Snyder
(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- Treasurer's Office. Closing documents include, but are not limited to, the following:
(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.
(1) 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 (10) 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 (10) calendar days of the closing date, with a copy of the recorded
documents to the Clerk- Treasurer's Office."
Section 3. All other current provisions of City Code Chapter 2, Article 5, shall remain in full force
and effect and are not affected by this Ordinance.
Ordinance D- 2027 -11, As Amended 1 -21 -11 Version A
Page Two of Four Pages
This Ordinance was prepared by Douglas C. Haney, Carmel City Attorney, and revised by the Finance Committee.
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Section 4. All prior ordinances or parts thereof inconsistent with any provision of this Ordinance
are hereby repealed, to the extent of such inconsistency only, as of the effective date of this Ordinance.
However, the repeal or amendment by this Ordinance of any other ordinance does not affect any rights or
liabilities accrued, penalties incurred or proceedings begun prior to the effective date of this Ordinance.
Those rights, liabilities and proceedings are continued and penalties shall be imposed and enforced under
such repealed or amended ordinance as if this Ordinance had not been adopted.
Section 5. If any portion of this Ordinance is for any reason declared to be unconstitutional or
invalid, such decision shall not affect the validity of the remaining portions of this Ordinance so long as
enforcement of same can be given the same effect.
Section 6. This Ordinance shall be in full force and effect from and after its passage and signing
by the Mayor and such publication as is required by law.
PASSED by the Common Council of the City of Cannel, Indiana, this 9 day of
.�,10 .46_, 2011, by a vote of 7 ayes and 0 nays.
Presiding Offi ^-r
W. Eric Seide sticker, Pr-_1.
3 nald E. Carter
ATTEST:
Diana L. Cordray, IAMC, C Treasurer
COMMON COUNCIL FOR THE CITY OF CARMEL
ent "ro Tempore
Z.1E BasalMy Docur nenlsVORDINANCES1ArnendCode \20111D- 2027 -11 AMENDED 1 -21 -11 ADO Sec 2 -184.3 RE CLOSING AGENT Finance Revs doclI252011 1221 AM
SPONSOR: Councilor Snyder
Richard L. Sharp
Ordinance D- 2027 -11, As Amended 1 -21 -11 Version. A.
Page Three of Four Pages
This Ordinance was prepared by Douglas C. Haney, Carmel City Attorney, and revised by the Finance Committee.
SPONSOR: Councilor Snyder
Presented by me to the Mayor of the City of Carmel, Indiana this 8 day of'44ruA.°`
2011, at 01 q- .M. V
ATTEST:
Diana L. Cordray, IAMC, Clerk Treasurer
Ordinance D- 2027 -11, As Amended 1 -21 -11 Version A
Page Four of Four Pages
a -s Brainard, Mayor
Diana L. Cordray, IAMC, Perk- Treasurer
S�
Approved by me, Mayor of the City of Carmel, Indiana, this oil day of A -t-k-
2011, at I o S P P .M.
This Ordinance was prepared by Douglas C. Haney, Carmel City Attorney, and revised by the Finance Committee.
Z:1E BassMy Documents\ ORDINANCES WmendCode120111D 2027 -11 AMENDED 1.21.11 ADD Sec 2.184.3 RE CLOSING AGENT Finance Revs dal/2521)11 10:21 AM