CHAPTER 3. RESPONSIBLE PROPERTY TRANSFER LAW
IC 13-25-3
Chapter 3. Responsible Property Transfer Law
IC 13-25-3-1
Information concerning property; liability for incomplete or
erroneous information
Sec. 1. (a) In response to an inquiry from a person in connection
with this chapter, the department shall provide information that is in
the department's possession concerning whether a property meets any
of the descriptions set forth in IC 13-11-2-174.
(b) Neither:
(1) the state;
(2) the department; nor
(3) an employee of the department who answers an inquiry
under this section;
is liable in a civil action on the grounds that information provided
under this section was incomplete or erroneous.
As added by P.L.1-1996, SEC.15.
IC 13-25-3-2
Disclosure document; delivery; waiver
Sec. 2. (a) Except as provided in subsections (b) and (c), a
transferor of property shall deliver a disclosure document to each of
the other parties to a transfer of property at least thirty (30) days
before the transfer. The disclosure document must be in the form
prescribed by the department under section 7.5 of this chapter and
must include the information elicited by that form. However, the
signature of the transferee is not required on the disclosure document
delivered to a party involved in the transfer of property as a lender.
(b) If all of the other parties to a transfer of property waive the
thirty (30) day deadline set forth in subsection (a) in written waivers
that indicate that the parties are aware of the purpose and intent of
the disclosure document, the transferor is not required to deliver the
disclosure document to the other parties thirty (30) days before the
transfer of the property. However, the transferor shall deliver a
disclosure document that meets the requirements set forth in
subsection (a) to each of the other parties to the transfer of property
on or before the date on which the transfer of property is to become
final.
(c) If a party involved in a transfer of property as a lender is not
identified to the transferor at least thirty (30) days before the transfer,
the thirty (30) day deadline set forth in subsection (a) does not apply
to the delivery of a disclosure document by the transferor to that
lender. However, if a lender is identified to a transferor less than
thirty (30) days before the transfer, the transferor shall deliver a
disclosure document to the lender immediately after the lender is
identified to the transferor.
As added by P.L.1-1996, SEC.15. Amended by P.L.15-2006, SEC.1.
IC 13-25-3-3
Disclosure document; environmental defects revealed; obligation
Sec. 3. If the disclosure document delivered by the transferor to
another party to the transfer of property under section 2 of this
chapter reveals one (1) or more environmental defects in the property
that were previously unknown to the other party, the other party is
relieved of an obligation to:
(1) accept the transfer of the property; or
(2) finance the transfer of the property.
As added by P.L.1-1996, SEC.15.
IC 13-25-3-4
Failure to deliver disclosure document
Sec. 4. (a) If a transferor:
(1) fails to deliver a disclosure document meeting the
requirements set forth in section 2 of this chapter to one (1) or
more other parties to the transfer of property before the deadline
set forth in section 2(a) of this chapter; and
(2) does not obtain a waiver under section 2(b) of this chapter;
a party that did not receive a disclosure document may demand a
disclosure document from the transferor.
(b) A party who demands a disclosure document under this
section may void an obligation to accept the transfer of the property
or to finance the transfer of the property if:
(1) the party does not receive a disclosure document not later
than ten (10) days after demanding a disclosure document; or
(2) the party receives a disclosure document not later than ten
(10) days after demanding the disclosure document but the
disclosure document reveals one (1) or more environmental
defects in the property that were previously unknown to the
party.
As added by P.L.1-1996, SEC.15.
IC 13-25-3-5
Demand of disclosure document
Sec. 5. (a) If a transferor:
(1) obtains a waiver under section 2(b) of this chapter; but
(2) fails to deliver a disclosure document meeting the
requirements set forth in section 2 of this chapter to one (1) or
more of the other parties to the transfer of property before the
date on which the transfer is scheduled to become final;
a party that did not receive a disclosure document may demand a
disclosure document from the transferor.
(b) Subject to section 6 of this chapter, a party who demands a
disclosure document under this section may void an obligation to
accept the transfer of the property or to finance the transfer of the
property if:
(1) the party does not receive a disclosure document not later
than ten (10) days after demanding a disclosure document; or
(2) the party receives a disclosure document not later than ten
(10) days after demanding the disclosure document but the
disclosure document reveals one (1) or more environmental
defects in the property that were previously unknown to the
party.
As added by P.L.1-1996, SEC.15.
IC 13-25-3-6
Voiding of obligation; limitation
Sec. 6. A party to a transfer of property may not void an
obligation to:
(1) accept the transfer of the property; or
(2) finance the transfer of property under sections 3 through 5
of this chapter;
after the transfer of property has taken place.
As added by P.L.1-1996, SEC.15.
IC 13-25-3-7
Repealed
(Repealed by P.L.15-2006, SEC.5.)
IC 13-25-3-7.5
Department prescribes form of disclosure document; information
in form
Sec. 7.5. The department shall prescribe the form of a disclosure
document to be completed and delivered by a transferor of property
under this chapter. The form must elicit at least the following
information:
(1) Property identification, including address, legal description,
and property characteristics.
(2) The nature of the transfer, including identities of the
transferor and transferee.
(3) Environmental information, including:
(A) regulatory information during the transferor's
ownership; and
(B) site information under other ownership or operation.
(4) Certification by the transferor that the information submitted
on the disclosure document is true and accurate to the best of
the transferor's knowledge and belief.
(5) Certification by the transferee that the disclosure document
was delivered with all elements completed.
As added by P.L.15-2006, SEC.2.
IC 13-25-3-8
Recording and filing of disclosure document
Sec. 8. (a) Not more than thirty (30) days after the effective date
of a transfer of property that requires the preparation of a disclosure
document under this chapter:
(1) the transferor or transferee shall record the disclosure
document in the office of the county recorder of the county in
which the property is located; and
(2) the transferor shall file a copy of the disclosure document
with the department.
(b) The transferor and transferee are jointly responsible for
recording a disclosure document in the county recorder's office under
this section. However, the recording of a disclosure document by one
(1) person referred to in this subsection discharges the responsibility
of the other person.
(c) A disclosure document recorded in the county recorder's office
or filed with the department:
(1) is a public record under IC 5-14-3; and
(2) must be available for inspection and copying during normal
business hours.
As added by P.L.1-1996, SEC.15. Amended by P.L.15-2006, SEC.3.
IC 13-25-3-9
Environmental defect elimination; recording
Sec. 9. (a) If a disclosure document recorded under section 8(a)(1)
of this chapter reports the existence of an environmental defect on a
property, a person who has a financial interest in the property may
record, in the same county recorder's office in which the disclosure
document is recorded, a document that reports that the environmental
defect has been eliminated from the property.
(b) A professional engineer registered under IC 25-31-1 who does
not have a financial interest in the property must certify a document
filed under this section.
As added by P.L.1-1996, SEC.15.
IC 13-25-3-10
Failure to deliver disclosure document; penalty
Sec. 10. A transferor who fails to deliver a disclosure document
to a party in violation of section 2 of this chapter commits a Class B
infraction.
As added by P.L.1-1996, SEC.15.
IC 13-25-3-11
Knowingly making false statement in disclosure document; penalty
Sec. 11. A transferor who knowingly makes a false statement in
a disclosure document delivered under this chapter commits a Class
A infraction. Each day that the transferor knows of the falsity of the
statement made in the disclosure document but fails to correct that
statement through the filing, recording, and delivery of a corrected
disclosure statement constitutes a separate infraction.
As added by P.L.1-1996, SEC.15.
IC 13-25-3-12
Failure to record disclosure document; penalty
Sec. 12. (a) Except as provided in subsection (b), a person who:
(1) is responsible for filing a disclosure document in the office
of the county recorder under section 8(a)(1) and 8(b) of this
chapter; and
(2) fails to record the disclosure document;
commits a Class A infraction.
(b) The failure of a transferee to record a disclosure document
within the period allowed under section 8(a) of this chapter is not an
infraction under this section if the disclosure document:
(1) was not delivered to the transferee within the time allowed
under section 2 of this chapter; or
(2) contains one (1) or more false statements about substantive
matters.
As added by P.L.1-1996, SEC.15. Amended by P.L.15-2006, SEC.4.
IC 13-25-3-13
Exceptions to disclosure document requirements
Sec. 13. (a) The duties imposed by this chapter are subject to the
exceptions set forth in this section.
(b) A buyer of property who finances the purchase of the property
through a mortgage loan is not required under section 2, 4, or 5 of
this chapter to deliver a disclosure document to the mortgagee that
provides the mortgage loan.
(c) A person who lends money and takes a mortgage on property
to secure the loan is not required under section 8 of this chapter to:
(1) record a disclosure document concerning the property in the
office of the county recorder of the county in which the
property is located; or
(2) file a copy of the disclosure document with the department.
As added by P.L.1-1996, SEC.15.
IC 13-25-3-14
Order requiring compliance with chapter
Sec. 14. In an action based on an alleged commission of an
infraction defined in sections 10 through 12 of this chapter, the
prosecuting attorney may obtain an order requiring the defendant to
comply with this chapter.
As added by P.L.1-1996, SEC.15.
IC 13-25-3-15
Civil action; damages; costs; attorney's fees
Sec. 15. A party to a transfer of property may bring a civil action
against another party to the transfer of property to recover
consequential damages based upon a violation of this chapter. In an
action brought under this section, a party may recover reasonable
costs and attorney's fees.
As added by P.L.1-1996, SEC.15.