The Indiana residential real estate purchase agreement (“residential purchase and sale agreement”) is a legally binding agreement between a buyer and seller for the purchase of residential property. Up until the date that the buyer’s offer closes, the seller may choose to accept the offer, negotiate, or refuse it.
Do Sellers in Indiana Have to Disclose Property Defects?
Indiana does require real estate sellers to disclose any material defects. Certain states do not require the seller to disclose all defects (caveat emptor), meaning the buyer assumes the responsibility to conduct a real property inspection to seek out any potential defects with the property. In those states, if a buyer fails to conduct a proper examination, they may not have a legal alternative to reverse the real estate transaction.
Required Seller Disclosures in Indiana
Along with any material defects with the property, sellers in Indiana will also need to provide the following:
- Seller’s Residential Real Estate Sales Disclosure. In Indiana, the Seller’s Residential Real Estate Sales Disclosure must be completed by the seller of a residential property and presented to any potential buyer. This form will let the buyer know of any defects, issues, or other information* that they should be made aware of before completing a purchase and sale agreement.
- Homeowners’ Association. If the property being sold falls under the rules and regulations of a Homeowners’ Association, the seller is legally obliged to supply the prospective buyer with all governing documents pertaining to the organization.
- Lead-Based Paint Disclosure. Any home that was constructed earlier than 1978 must come with a disclosure upon the transfer of the property that includes any data concerning the presence of lead on the premises as well as educational materials that communicate the risks involved with coming into contact with the harmful substance.