Ask Realest: Selling a Home
Ask Realest > Seller’s disclosure
Do I need an Indiana seller’s disclosure form before I accept an offer?
Yes, in most sales. If you sell a home with one to four units in Indiana, state law has you complete and sign a seller’s disclosure form. You give it to the buyer before you accept their offer. Some sales are exempt, such as court-ordered transfers and the first sale of a home nobody has lived in. It is the same state form in Lake County and Porter County.
This is general information, not legal advice. Confirm your situation with your agent or a real estate attorney.
Who has to fill it out
Indiana Code 32-21-5 covers the sale, exchange, installment contract, or lease with an option to buy of a home with no more than four dwelling units. A single-family house, a condo, or a two-flat all fit.
The statute also lists sales it does not cover. Here are a few of them:
- Court-ordered transfers, such as an estate, a foreclosure sale, or a divorce decree
- Sales by a lender that took the home through foreclosure or a deed in lieu
- Transfers by a fiduciary handling an estate, guardianship, conservatorship, or trust
- Transfers only between co-owners, or only to a spouse or direct-line relative
- The first sale of a home nobody has lived in
Our Learn guide has the full list of exemptions. Not sure your sale fits one? Ask a real estate attorney before you skip the form.
What the form asks about
The Indiana Real Estate Commission writes the form. Indiana Code 32-21-5-7 says what goes on it. You disclose what you know about:
- The foundation, the roof, and the structure
- The mechanical systems
- The water and sewer systems
- Additions that may need improvements to the sewage disposal system
When it applies, the statute also asks about a short list of other items. Those include known meth contamination, an airport within the distance the commission sets, and a nearby military installation. They also include a FEMA flood plain you personally know about, a local historic district, and a conservation easement.
Your Realtor can hand you the form. You fill it out from what you know, and the answers are yours, not your agent’s.
When you hand it over
Under Indiana Code 32-21-5-10, you complete and sign the form and give it to the buyer before you accept an offer. Until you and the buyer have both signed it, the buyer isn’t bound by an accepted offer.
You don’t have to guess. Indiana Code 32-21-5-12 lets you mark an item as unknown. You can also give an approximation that is reasonable, clearly labeled, and based on what you actually know.
Things can change before closing. A storm takes shingles, or the water heater quits. At or before closing, you disclose any material change in the home’s condition or certify that it is substantially the same.
The buyer’s two business days
Say the buyer gets the form, or an amended form, after the offer is accepted. If it discloses a defect, Indiana Code 32-21-5-13 gives the buyer two business days to cancel. They deliver a written rescission to you or your agent. They get their deposits back and are not liable for canceling.
That window is tied to a form that shows up after acceptance. It is one more reason to deliver yours before you accept.
What the form is not
It is not a warranty from you or your agent. It does not replace the buyer’s inspections (Indiana Code 32-21-5-9).
Indiana Code 32-21-5-11 limits your liability for errors you did not actually know about, as long as you were not negligent. Whether that covers your sale is a question for a real estate attorney.
It is also not the sales disclosure form filed with the county auditor at closing. That one is a separate state form. Our answer on buyer closing costs in Northwest Indiana covers it.
Homes built before 1978
Homes built before 1978 need a second, federal disclosure under 40 CFR Part 745, with narrow exceptions such as foreclosure sales and homes certified lead-free. Before the buyer signs the contract, the EPA lead disclosure rule has you give the buyer the pamphlet Protect Your Family From Lead in Your Home. You disclose any known lead-based paint or lead hazards and hand over any reports you have.
The buyer gets 10 days to test for lead unless both sides agree in writing to a different period or the buyer waives it. Your agent can give you the lead disclosure form to sign.
The full statute detail
Every exemption, the full form list, and each source sit in our Learn guide: Indiana Seller’s Disclosure Form for Lake and Porter County
Related
How much will I net when I sell?, What should I watch for on a home inspection?, Do I need a written buyer agreement?, Sell with Realest, Search homes on Realest.com
Quick answers
Do I need an Indiana seller’s disclosure form before I accept an offer?
If you are selling a home with one to four dwelling units, yes, unless your sale fits an exemption in Indiana Code 32-21-5-1. You complete and sign the form and give it to the buyer before you accept an offer. We are licensed in Indiana and Illinois.
Which sales are exempt from the Indiana seller’s disclosure?
The statute exempts court-ordered transfers, sales by a lender after foreclosure or a deed in lieu, and transfers by a fiduciary. It also exempts transfers only between co-owners or only to a spouse or direct-line relative, tax sales, and transfers to or from a government entity. The first sale of a home nobody has lived in and transfers to a living trust are exempt too.
Can a buyer back out after getting the disclosure?
If the buyer gets the form, or an amended form, after the offer is accepted and it discloses a defect, the buyer can cancel. Indiana Code 32-21-5-13 gives them two business days to cancel in writing and get their deposits back.
Is the seller’s disclosure a warranty?
No. Indiana Code 32-21-5-9 says the form is not a warranty by the owner or the agent. It is not a substitute for the buyer’s inspections.
Do I need a lead disclosure too?
If your home was built before 1978, yes, with narrow exceptions such as foreclosure sales and homes certified lead-free. The EPA rule has you give the buyer a lead pamphlet and disclose any known lead-based paint or lead hazards before the buyer signs the contract.
Sources: IC 32-21-5-1, IC 32-21-5-7, IC 32-21-5-9, IC 32-21-5-10, IC 32-21-5-11, IC 32-21-5-12, IC 32-21-5-13, EPA Real Estate Disclosures about Potential Lead Hazards (40 CFR Part 745, Subpart F).
Selling soon? A Realest Realtor can walk the form with you before you list.
Search homes on Realest.com
Call (219) 801-0432
We’re the shop at 112 S. Main St., Suite B, Crown Point, IN 46307. Love Thy Neighbor. General information, not legal advice.