SB127 • 2026

A BILL FOR AN ACT to amend the Indiana Code concerning property.

Housing

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Senator David Niezgodski
Last action: 2025-12-11
Official status: Introduced Senate Bill (S)
Effective date: Not listed

Plain English Breakdown

The official source material does not provide details on how violations will be enforced or monitored, leaving this aspect uncertain.

Landlord-Tenant Protection Act

This act changes Indiana's property laws to require landlords to give tenants notice before selling their homes and ensures new buyers honor existing leases under certain conditions.

What This Bill Does

Requires landlords to provide at least 60 days' written notice before listing a residential rental property for sale if there is an unexpired lease.
Makes new buyers of rental properties honor existing leases unless they give tenants at least 30 days' notice and pay one month's rent plus the full security deposit to terminate the lease early.
Defines 'essential services' as utility services needed for safe habitation and 'essential systems' as equipment delivering these services, requiring landlords to repair or replace malfunctioning essential systems within 48 hours of notification by tenants.
Allows courts to hold regular rental payments in trust during legal disputes between tenants and landlords.

Who It Names or Affects

Landlords who own rental properties
Tenants living in rented homes or apartments
Buyers purchasing residential rental properties

Terms To Know

essential services: Basic utilities like water, electricity, and heating that keep a home safe to live in.
essential systems: Equipment or infrastructure used to provide essential services to rental units.

Limits and Unknowns

The bill does not specify what happens if landlords do not follow the new rules.
It is unclear how this act will be enforced and monitored by local authorities.

Bill History

2025-12-11 Senate
Authored by Senators Niezgodski, Hunley, Pol
2025-12-11 Senate
First reading: referred to Committee on Judiciary

Official Summary Text

A BILL FOR AN ACT to amend the Indiana Code concerning property.
Landlord-tenant matters.

Current Bill Text

Read the full stored bill text

A BILL FOR AN ACT to amend the Indiana Code concerning property.

Landlord-tenant matters.

Provides that a landlord may not sell a residential rental property that is subject to an unexpired written lease unless the landlord gives written notice to the tenant not less than 60 days before the landlord lists the property for sale, unless certain exceptions apply. Requires a buyer of a residential rental property to honor an unexpired written lease between the previous owner and a tenant unless the buyer of the residential rental property: (1) gives to the tenant, not less than 30 days before the lease is terminated, written notice that the buyer intends to terminate the lease; and (2) pays the tenant an amount equal to one monthly rental payment plus the full security deposit. For purposes of a residential rental unit, defines: (1) "essential services" as certain utility services needed for the safe and habitable occupation by a tenant of the tenant's rental unit; and (2) "essential systems" as certain systems used to deliver essential services to a rental unit. Requires a landlord to repair or replace an essential system not later than 48 hours after being notified by a tenant that the tenant's rental unit is without essential services as a result of: (1) a malfunction in the essential system; or (2) the landlord's failure to maintain the system in good and safe working condition. Provides that, during the pendency of a court action brought by a tenant to enforce a statutory obligation of a landlord, the court may order the tenant to make the regular rental payments otherwise due to the landlord under the rental agreement to: (1) the clerk of the court; or (2) an attorney trust account; to be held in trust for disbursal to the prevailing party, as ordered by the court. For purposes of the rights of tenants who are victims of certain crimes, provides that evidence showing a tenant engaged in a protected activity not more than six months before the landlord's alleged retaliatory conduct creates a rebuttable presumption that the purpose of the landlord's conduct was retaliation. Specifies the evidence a landlord may show to rebut the presumption. Requires a landlord to pay all penalties or fines imposed by a political subdivision for violation of the landlord's obligations with regard to a rental premises. Requires a landlord to pay all penalties or fines and make all repairs required by a political subdivision before the landlord may deliver the rental premises to a tenant.