Seller Disclosure Requirements
in Indiana

Navigating the sale of a home in Indiana requires a clear understanding of your disclosure obligations. Indiana operates under a modified form of 'caveat emptor,' meaning 'let the buyer beware.' However, this ancient legal doctrine is significantly tempered by Indiana Code § 32-21-5, which mandates the use of a specific document: the Indiana Seller’s Residential Real Estate Sales Disclosure Form. Unlike a true 'buyer beware' state, Indiana law compels sellers to be forthcoming about any actual knowledge they possess regarding defects in the property. The crucial point of the law is that it pertains to *actual knowledge*; sellers are not required to conduct their own inspection to uncover hidden issues. This vital **seller disclosure indiana** form must be completed, signed, and delivered to a prospective buyer before an offer is accepted. Upon receipt, a buyer typically has a short window of time to review the disclosures and, if an undisclosed defect is revealed that they find unacceptable, they may have the right to terminate the purchase agreement. These **indiana disclosure requirements** set the stage for the entire transaction, making the form one of the most critical documents in the process.

At the heart of the disclosure process is the question of **what must sellers disclose**. The state-mandated form is quite comprehensive, breaking down potential issues into specific categories to guide the seller. You must address the condition of key systems like HVAC, electrical, water and sewer, as well as the structural integrity of the foundation, roof, and other components. Market trends show litigation arise from sellers failing to mention a sump pump that runs constantly, indicating a high water table, or neglecting to disclose that a finished basement was completed without proper permits from the Marion County Department of Business and Neighborhood Services. The form explicitly asks about water intrusion, wood-destroying insects (a perennial Indiana problem), and issues with major appliances that will be included in the sale. This comprehensive checklist is designed to leave little to ambiguity, forcing a direct answer on dozens of specific points and ensuring a thorough **property disclosure**.

Considering Indiana's unique geography and climate, certain disclosures carry particular weight. Much of central Indiana is built on expansive clay soil, which can cause significant foundation movement and cracking—an issue that must be disclosed if known. In southern Indiana, particularly around Bloomington and Bedford, the Karst topography creates a risk of sinkholes and unpredictable groundwater behavior, making any known foundation or water issues in that region especially material. Radon, a naturally occurring radioactive gas, is prevalent in many Indiana counties, and while a seller isn't required to test for it, they must disclose if they have actual knowledge of a test result indicating elevated levels. Experts have also managed cases involving failure to disclose issues related to meth production, for which Indiana law has specific decontamination and disclosure protocols. These location-specific **indiana disclosure requirements** are not merely suggestions; they are critical for an honest and legally defensible sale.

Unfortunately, when a seller is not forthcoming, the consequences can be severe. Experts have litigated cases where sellers intentionally concealed known defects, a legal concept known as fraudulent misrepresentation. Imagine a seller in Fishers who paints over the pervasive black mold on the drywall in their basement just before listing. They check 'No' on the **Indiana seller disclosure form** regarding moisture and mold issues. After closing, the buyers discover the underlying problem during a renovation. In such a scenario, the buyers could sue for damages—covering the cost of mold remediation and repair—or in extreme cases, seek rescission of the entire sale. The key distinction is between a 'latent defect'—a hidden problem the seller knew about—and a 'patent defect,' which is an obvious issue a buyer should have noticed. A successful **seller disclosure indiana** lawsuit hinges on proving the seller had actual knowledge of a latent defect and intentionally concealed it, a costly and stressful battle for all involved.

From my perspective as an attorney, the best practice for sellers is to approach the **property disclosure** with radical transparency. Your goal should be to create an ironclad defense against any future claims. I strongly advise clients to invest in a pre-listing home inspection. This provides a third-party, professional assessment of the home's condition. You can then attach this report directly to your disclosure form, demonstrating good faith and providing a complete picture. This strategy effectively neutralizes a buyer's ability to later claim you hid something. If the inspection reveals a problem, you have two choices: fix it properly and provide the receipts, or disclose it and price the home accordingly. Answering the question of **what must sellers disclose** honestly, backed by professional documentation, is the single most effective way to prevent the kind of post-closing legal disputes that can haunt a seller for years.

Buyers, in turn, must recognize that the seller’s disclosure is not a home warranty or a substitute for their own diligence. It is a starting point for investigation. When you receive the form, treat it as a road map for your own inspections. If the seller discloses a past roof repair, instruct your home inspector to pay special attention to the attic and ceilings for any signs of recurring leaks. If the seller checks 'Do Not Know' for the condition of the septic system, it is imperative that you hire a specialist to perform a full septic inspection. The inspection and response period is your opportunity to verify the seller’s claims, uncover issues the seller may not even be aware of, and truly understand the condition of the property you are about to purchase. Diligent investigation based on the initial disclosure is the buyer's best protection under the **indiana disclosure requirements**.