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Indiana

Skendzel v. Marshall, 261 Ind. 226 (1973); Ind. Code § 32-21-1 et seq.

Contract type

Land contract

Cure period

30 days (contractual)

Recording

Recommended

County Recorder

Default remedy

Forfeiture or judicial foreclosure

Owner-Finance Land Contracts in Indiana

Overview

Indiana recognizes installment land contracts ("contract for deed" or "conditional sales contract") and they are common for vacant land, rural acreage, and modest residential transactions. The seminal case Skendzel v. Marshall, 261 Ind. 226, 301 N.E.2d 641 (Ind. 1973) reshaped the law by requiring that long-running contracts be treated as mortgages, with foreclosure (and surplus to the buyer) rather than forfeiture in many cases.

Governing Law

Indiana's installment-contract framework is partly statutory and partly judge-made. Ind. Code § 32-30-3 governs forfeiture procedures and limits when forfeiture is available. The Statute of Frauds, Ind. Code § 32-21-1, requires a written contract for the sale of land. Skendzel v. Marshall remains the controlling decision: when the buyer has acquired substantial equity, the contract is enforced as a mortgage and the seller must judicially foreclose under Ind. Code § 32-29 (mortgages of real property), with surplus proceeds going to the buyer.

Recording the Buyer's Interest

Recording is permissive but highly advisable. Indiana is a race-notice state under Ind. Code § 32-21-4-1; an unrecorded contract is void as against subsequent bona fide purchasers and creditors. Buyers should record the contract or a memorandum in the county recorder's office. Recording is also relevant to property-tax billing and the buyer's ability to claim the homestead deduction.

Default and Cure Period

There is no universal statutory cure period for installment contracts. The contract supplies the cure period — 30 days is typical, with longer periods (60–90 days) recommended for higher-equity contracts. Where the contract is treated as a mortgage under Skendzel, the foreclosure timeline and statutory three-month stay under Ind. Code § 32-29-7 apply.

Seller Remedies on Default

For early-stage defaults with minimal buyer equity, forfeiture under Ind. Code § 32-30-3 may be appropriate, recovered through a possession action. Once buyer equity is "substantial" under Skendzel, the seller must judicially foreclose like a mortgagee — the buyer is entitled to any surplus from the sheriff's sale. Specific performance and equitable mortgage doctrine are available. Indiana courts disfavor forfeiture where it would unjustly enrich the seller, and they will reform a forfeiture remedy into a foreclosure if equity demands.

Vacant Land vs. Residential

Indiana's framework applies to vacant land and improved property alike — there is no vacant-land carve-out from Skendzel. As a practical matter, vacant-land contracts often involve smaller absolute equity stakes, which makes early-default forfeiture more defensible. Counties may impose recording-fee surcharges and there is no special residential-disclosure statute comparable to those in Maryland or Texas.

Practical Notes for Sellers

  • Treat Skendzel as the lodestar — the longer the contract runs and the more the buyer pays in, the harder forfeiture becomes.
  • Build a foreclosure path into your default plan; do not assume you can simply repossess after years of payments.
  • Record a memorandum of contract; many Indiana counties also use the recorded contract to assign property-tax billing to the buyer.
  • Define a clear cure period (30 days minimum) and a written notice-of-default delivered by certified mail.
  • Where the buyer has built up real equity, consider a deed-in-lieu negotiation rather than a contested forfeiture suit.

Disclaimer

This page is a public-law summary for general informational purposes only. It is not legal advice. Owner-finance transactions are state-specific and fact-specific. Engage a licensed attorney in the parcel's state before drafting, signing, or recording any agreement.

Structured data

The legal mechanics of a Indiana deal.

Governing statute
high confidence
Skendzel v. Marshall, 261 Ind. 226 (1973); Ind. Code § 32-21-1 et seq.
Indiana has no comprehensive land-contract statute; the Skendzel decision requires foreclosure-like treatment when buyer equity is substantial.
Recording instrument
Land contract or memorandum of land contract
Filed at the County Recorder. Recording is recommended to protect the buyer's interest.
Cure period
30 days (typical contractual)
No statutory cure period; courts apply Skendzel to deny forfeiture where the buyer has built up significant equity.
Default remedy
Forfeiture or judicial foreclosure
Forfeiture is permitted only when the buyer has minimal equity; otherwise Skendzel requires the seller to foreclose the contract as if it were a mortgage.
Notable requirements
  • Written contract signed by both parties (statute of frauds)
  • Notarization for recording
Prohibited or limited
  • Forfeiture is restricted by case law where buyer equity is substantial
Vacant land vs. residential
Skendzel applies to residential and vacant-land contracts alike, but courts may be more willing to allow forfeiture on vacant-land contracts in early default.

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Important disclaimer

This page is a public-law summary for general informational purposes only. It is not legal advice. Owner-finance transactions are state-specific and fact-specific. Engage a licensed attorney in Indiana before drafting, signing, or recording any agreement. Statute citations and procedural notes may be incomplete or out of date — always verify against the current code.