(a) If any person believing himself or herself to be the owner, either in law or equity, under color of title has peaceably improved, or shall peaceably improve, any land which upon judicial investigation shall be decided to belong to another, the value of the improvement made as stated and the amount of all taxes which may have been paid on the land by the person, and those under whom he or she claims, shall be paid by the successful party to the occupant, or the person under whom, or from whom, he or she entered and holds, before the court rendering judgment in the proceedings shall cause possession to be delivered to the successful party.

(b)

(1) The court or jury trying the cause shall assess the value of the improvements in the same action in which the title to the lands is adjudicated.

(2) On the trial, the damages sustained by the owner of the lands from waste and any mesne profits as may be allowed by law shall also be assessed.

(c)

(1) If the value of the improvements made by the occupant and the taxes paid as stated in subsection (a) of this section shall exceed the amount of the damages and mesne profits combined, the court shall enter an order as a part of the final judgment providing that no writ shall issue for the possession of the lands in favor of the successful party until payment has been made to the occupant of the balance due him or her for the improvements and the taxes paid.

(2) This amount shall be a lien on the lands, which may be enforced by equitable proceedings at any time within three (3) years after the date of the judgment.

(d) In recoveries against the occupants, no account for any mesne profits shall be allowed unless they shall have accrued within three (3) years prior to the commencement of the suit in which they may be claimed.

(e) In any of these equitable proceedings, the court may allow to the owner of the lands, as a setoff against the value of the improvements and taxes, the value of all rents accruing after the date of the judgment in which it has been allowed.