Most Indiana home sales require the seller to fill out a state disclosure form before an offer is accepted. Here is what the law requires, who is exempt, and what it means for buyers and sellers.
I'm Wes Johnston, a Realtor with Trueblood Real Estate in Fishers. I'm not a lawyer, and this page isn't legal advice. It's a plain-English walk through Indiana's Residential Real Estate Sales Disclosure law (Indiana Code 32-21-5), with the statute section cited for each point.
The disclosure form is where a seller tells a buyer, in writing, what they actually know about the house. Done well, it protects both sides. Done late or carelessly, it can give a buyer a way out of the deal — or give a seller a problem after closing.
Yes, for most sales. Indiana Code 32-21-5 applies to sales, exchanges, installment contracts and lease-with-option-to-buy deals for residential property with one to four dwelling units. The Indiana Real Estate Commission sets the form's contents; it's commonly titled the “Seller's Residential Real Estate Sales Disclosure.”
IC 32-21-5-1 lists the exemptions. The main ones: court-ordered transfers (estates, foreclosure sales, bankruptcy, divorce decrees); sales by a lender that took the home through foreclosure or a deed in lieu; transfers by a fiduciary such as an executor, guardian or trustee; transfers between co-owners, between spouses, or between direct-line relatives; transfers into a living trust; tax-sale and government transfers; and the first sale of a newly built home that has never been lived in.
That last one matters for buyers of new construction: there's no state disclosure form, so the builder's warranty, your contract and your own inspection carry more weight.
Under IC 32-21-5-7, the form asks about the seller's known conditions of the foundation, mechanical systems, roof, structure, water and sewer systems, and additions that may need sewage-system improvements, plus anything else the Commission adds. It also covers known contamination from making a controlled substance such as meth, unless the property has been professionally certified as cleaned up.
The form also gives notice if the property is near an airport or military installation, is in a FEMA flood plain, is in a historic district, or has a conservation easement. And it has to tell the buyer to get professional advice and inspections, and that the statements are the owner's, not the agent's.
Before an offer is accepted. IC 32-21-5-10 requires the owner to complete, sign and deliver the form to the prospective buyer before accepting the offer. Before closing, the contract can't be enforced against the buyer until both sides have signed the form. After closing, a failure to deliver the form doesn't by itself undo the sale.
In practice, I have sellers complete it before the house goes live, so it's ready for the first buyer who asks.
Yes. Under IC 32-21-5-13, if a buyer receives a disclosure revealing a defect after the offer is accepted, the buyer can cancel by delivering a written rescission to the owner or the owner's agent within two business days. The buyer has no liability and gets any deposit back.
For sellers, that's the practical reason to disclose early and completely: a late disclosure hands the buyer a clean exit.
No. IC 32-21-5-9 says the disclosure isn't a warranty by the owner or the agent, and it doesn't replace any inspection or warranty the buyer chooses to get. Buyers should still get a full inspection. The form tells you what the seller knows, not what's actually there.
IC 32-21-5-11 says an owner isn't liable for an error they didn't actually know about, or one based on information from a public agency or licensed professional they reasonably relied on, as long as they weren't negligent in getting and passing it on.
If something changes after the form is delivered — a roof leak in a storm, a failed water heater — IC 32-21-5-12 requires the owner to disclose material changes by closing or certify that the condition is substantially the same. Where information isn't available, the owner can say so or give a clearly labeled good-faith estimate.
That's a separate federal requirement for homes built before 1978. Before the buyer is bound by a contract, the seller must give the EPA lead-hazard pamphlet, disclose any known lead-based paint or hazards, hand over available reports, and include the required warning language in the contract. Buyers get 10 days for a lead inspection or risk assessment unless both sides agree in writing to change or waive it.
Not under Indiana's psychologically affected property law (IC 32-21-6). Owners and agents aren't required to disclose that a home is “psychologically affected” — for example, that someone died there or it was the site of certain crimes. But they can't intentionally misrepresent it if a buyer asks directly. If it matters to you, ask in writing.
I walk every seller through the form before the house goes live, so it's complete, accurate and ready for the first buyer who asks. It's one of the simplest ways to keep a deal together.
I'm not a lawyer. If your situation is unusual — an estate, a known defect, a dispute — I'll tell you when it's time to call one.
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Tell me about the house and your timing. I'll walk you through the disclosure and what buyers will ask.
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Tell me about the house and what you're unsure how to answer. I'll walk you through it before you list.
Not legal advice; for anything unusual I'll point you to a real estate attorney.
This page is general information, not legal advice. It summarizes Indiana Code 32-21-5 and 32-21-6 and EPA lead-disclosure rules as of September 2026. Laws and forms change; confirm your specifics with a real estate attorney.