Purchasers under land sales contracts; eligibility for loans

Sec. 5. (a) A purchaser under a land sales contract is eligible for a loan to cover the costs of repairs that will bring the purchaser's home into compliance with applicable building code standards, if all of the following conditions are present: (1) The contract is a written, legally binding instrument involving a residential property containing, after rehabilitation, not more than four (4) dwelling units. (2) The seller of the property holds fee title to the property, and, while the contract is in good standing, is unable to use the property for collateral or to convey it to any other party, unless the use for collateral or conveyance of fee is subject to the land sales contract. The agency shall record this agreement, or the contract, promptly after loan settlement. (3) Under the contract, the seller and any subsequent holder of the fee to the property is obligated, without qualification, to deliver to the purchaser fee simple title and a deed to the property upon full payment of the contract price, or some lesser amount. (4) Under the contract, the purchaser has: (A) full use, possession, and quiet enjoyment of the property; (B) equitable title to the property; and (C) full rights of redemption for a period of not less than ninety (90) days. (5) The purchaser has had possession and use of the property under the contract for at least twelve (12) months before the date of application for a loan. If the loan is to include an amount to refinance the balance due under a land sales contract, this requirement does not apply. (b) The agency may purchase the property from the contract seller at any time by the exercise of any right of accelerated payment that is provided for under the contract, by negotiation with the contract seller, or by the exercise of the power of eminent domain.