Do I Need to Disclose Known Issues When Selling a Home in Indiana?

Yes. Indiana law requires you to complete a written Seller's Residential Real Estate Sales Disclosure Form telling the buyer about known defects in the property's condition — delivered before the buyer's offer is accepted, not at closing. This applies whether you're selling a 1970s ranch or a resale home in a newer HOA community, and even if the contract says the home is being sold "as-is." Here's what the form covers, who's exempt, and what happens if a seller gets it wrong.

What Indiana's Seller Disclosure Law Actually Requires

Indiana's disclosure law (Indiana Code 32-21-5) is built around one legal standard: you only have to disclose what you actually know. It's not an inspection requirement — you're disclosing your own knowledge of the property's condition, in writing, on a standardized state form.

The form covers the foundation and structure, roof and siding, plumbing and sewer or septic systems, electrical systems, HVAC (furnace, heat pump, water heater), known water intrusion or moisture problems, termite or pest history, additions made without required permits, and whether the property has ever been used as a methamphetamine lab. It also asks whether the home sits within one mile of an airport and whether it's part of a homeowners association — including HOA assessments and governing documents, which matters in Westfield, where a large share of homes sit inside an active HOA (Chatham Hills, Harmony, Bridgewater Club, and dozens more across town).

The form has to be completed, signed, and delivered before the buyer's offer is accepted — not held until closing. If the buyer gets an amended or late disclosure after their offer is already accepted, Indiana law gives them a two-business-day window to cancel the contract and get their earnest money back. After that window passes, they generally can't use the late disclosure as grounds to back out later.

What Happens If You Don't Disclose (or Get It Wrong)

Indiana's disclosure law is a real exception to the old "buyer beware" rule that used to govern home sales — and the Indiana Supreme Court has been clear that an "as-is" clause or a waived inspection doesn't cancel out a seller's disclosure obligations. In Johnson v. Wysocki, the court reasoned that a buyer's decision to waive an inspection is often based on trusting what the seller already told them, so the disclosure itself still has to be honest.

That said, the law isn't a trap for honest sellers. If you didn't know about a problem, or you passed along inspector or public-record information in good faith without being negligent about it, you're generally protected even if that information turns out to be wrong. The exposure comes from knowing about a real problem — a wet basement, a failing septic system, a roof patched three times — and leaving it off the form, or answering "no" when the honest answer is "yes."

If a seller does that, a buyer can bring a fraud claim, generally by showing the seller made a false statement about something material, knew it was false (or was reckless about it), intended the buyer to rely on it, and that the buyer did rely on it and was harmed. A successful claim can mean actual damages plus attorney's fees, since most Indiana purchase agreements award fees to the prevailing party — and buyers generally have two to six years from discovering the issue to bring a claim, so this isn't something that quietly disappears at closing.

Two Westfield-Specific Things Worth Getting Right

Two nuances come up often enough in Westfield specifically to call out directly. First: brand-new construction is exempt. Indiana Code 32-21-5-2 exempts transfers of newly built homes sold for first occupancy — which matters here because Westfield has roughly 200 active new-construction communities right now, from entry-level product in the low $200,000s to custom homes well over $1 million. A builder selling a brand-new home in Chatham Hills or off Grand Park doesn't complete this form. But the moment that same home resells, the new owner-seller is fully subject to the law — so if you bought new construction in Westfield a few years back and are getting ready to sell, don't assume the exemption still applies to you.

Second: don't confuse this with the "Sales Disclosure Form" your closing agent files with the Hamilton County Assessor. That's a separate filing (Indiana Code 6-1.1-5.5) for property tax assessment and county records — it reports the sale price and transaction details, not the home's physical condition, and doesn't satisfy your obligation to tell the buyer about a leaky roof or cracked foundation. Sellers occasionally assume one form covers the other; it doesn't.

MOVE Group at REMAX Advanced Realty

Jason Kraus leads the MOVE Group at REMAX Advanced Realty, Hamilton County's dedicated local real estate specialists headquartered in Westfield, serving Westfield, Carmel, Noblesville, and the surrounding communities since 2008. Jason is also Broker/Owner of REMAX Advanced Realty and team leader of the Indy Home Pros Team, REMAX's #1 team in Indiana by transactions — before real estate, he spent 12 years as a middle school English teacher, a background that shows in how clearly and patiently he communicates through a transaction. When you list with the MOVE Group, we walk the disclosure form with you line by line before it ever reaches a buyer.

Frequently Asked Questions

Does Indiana require a seller's disclosure form when selling a home?

Yes. With limited exceptions, Indiana law requires sellers of residential property with up to four units to complete a written disclosure form describing known defects in the structure, systems, and other specified conditions, delivered to the buyer before their offer is accepted.

Is a home sold "as-is" exempt from Indiana's disclosure requirement?

No. Indiana's courts have specifically ruled that an "as-is" sale or a waived inspection does not eliminate a seller's duty to disclose known material defects — the disclosure form still has to be completed and delivered.

Are new construction homes exempt from Indiana's seller disclosure law?

Yes, but only the first sale. Indiana Code 32-21-5-2 exempts newly constructed homes sold for first occupancy. Once that home resells later, the new seller is fully subject to the disclosure requirement.

What happens if I receive the disclosure form late as a buyer?

If you receive the disclosure — or a material amendment to it — after your offer has already been accepted, Indiana law gives you two business days to cancel the contract and recover your earnest money.

Can a seller be held liable for a defect they genuinely didn't know about?

Generally, no. Indiana's disclosure law is based on actual knowledge, and honest, good-faith errors — including passing along inaccurate information from a public record or licensed professional without negligence — don't create liability. Exposure comes from knowingly misrepresenting or concealing a defect.

Thinking about selling a home in Westfield and want a straight answer on what you do and don't have to disclose? Reach out to the MOVE Group — we'll walk the disclosure form with you before it goes anywhere near a buyer.

For more on selling in Westfield, see what home improvements actually add value before you list, what closing costs to expect as an Indiana seller, and browse the rest of our Westfield real estate FAQ. You can also explore real estate across Hamilton County or learn more about working with Jason Kraus and the MOVE Group in Westfield.