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 orerroneous information
Sec. 1. (a) In response to an inquiry from a person in connectionwith this chapter, the department shall provide information that is inthe department's possession concerning whether a property meets anyof 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 inquiryunder this section;
is liable in a civil action on the grounds that information providedunder 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), atransferor of property shall deliver a disclosure document to each ofthe other parties to a transfer of property at least thirty (30) daysbefore the transfer. The disclosure document must be in the formprescribed by the department under section 7.5 of this chapter andmust include the information elicited by that form. However, thesignature of the transferee is not required on the disclosure documentdelivered 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 thethirty (30) day deadline set forth in subsection (a) in written waiversthat indicate that the parties are aware of the purpose and intent ofthe disclosure document, the transferor is not required to deliver thedisclosure document to the other parties thirty (30) days before thetransfer of the property. However, the transferor shall deliver adisclosure document that meets the requirements set forth insubsection (a) to each of the other parties to the transfer of propertyon or before the date on which the transfer of property is to becomefinal.
(c) If a party involved in a transfer of property as a lender is notidentified to the transferor at least thirty (30) days before the transfer,the thirty (30) day deadline set forth in subsection (a) does not applyto the delivery of a disclosure document by the transferor to thatlender. However, if a lender is identified to a transferor less thanthirty (30) days before the transfer, the transferor shall deliver adisclosure document to the lender immediately after the lender isidentified 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 toanother party to the transfer of property under section 2 of thischapter reveals one (1) or more environmental defects in the propertythat were previously unknown to the other party, the other party isrelieved 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 therequirements set forth in section 2 of this chapter to one (1) ormore other parties to the transfer of property before the deadlineset 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 adisclosure document from the transferor.
(b) A party who demands a disclosure document under thissection may void an obligation to accept the transfer of the propertyor to finance the transfer of the property if:
(1) the party does not receive a disclosure document not laterthan 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 thedisclosure document reveals one (1) or more environmentaldefects in the property that were previously unknown to theparty.
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 therequirements set forth in section 2 of this chapter to one (1) ormore of the other parties to the transfer of property before thedate on which the transfer is scheduled to become final;
a party that did not receive a disclosure document may demand adisclosure document from the transferor.
(b) Subject to section 6 of this chapter, a party who demands adisclosure document under this section may void an obligation toaccept the transfer of the property or to finance the transfer of theproperty if:
(1) the party does not receive a disclosure document not laterthan 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 environmentaldefects in the property that were previously unknown to theparty.
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 anobligation to:
(1) accept the transfer of the property; or
(2) finance the transfer of property under sections 3 through 5of 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; informationin form
Sec. 7.5. The department shall prescribe the form of a disclosuredocument to be completed and delivered by a transferor of propertyunder this chapter. The form must elicit at least the followinginformation:
(1) Property identification, including address, legal description,and property characteristics.
(2) The nature of the transfer, including identities of thetransferor and transferee.
(3) Environmental information, including:
(A) regulatory information during the transferor'sownership; and
(B) site information under other ownership or operation.
(4) Certification by the transferor that the information submittedon the disclosure document is true and accurate to the best ofthe transferor's knowledge and belief.
(5) Certification by the transferee that the disclosure documentwas 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 dateof a transfer of property that requires the preparation of a disclosuredocument under this chapter:
(1) the transferor or transferee shall record the disclosuredocument in the office of the county recorder of the county inwhich 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 forrecording a disclosure document in the county recorder's office underthis section. However, the recording of a disclosure document by one(1) person referred to in this subsection discharges the responsibilityof the other person.
(c) A disclosure document recorded in the county recorder's officeor filed with the department:
(1) is a public record under IC 5-14-3; and
(2) must be available for inspection and copying during normalbusiness 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 aproperty, a person who has a financial interest in the property mayrecord, in the same county recorder's office in which the disclosuredocument is recorded, a document that reports that the environmentaldefect has been eliminated from the property.
(b) A professional engineer registered under IC 25-31-1 who doesnot have a financial interest in the property must certify a documentfiled 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 documentto a party in violation of section 2 of this chapter commits a Class Binfraction.
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 ina disclosure document delivered under this chapter commits a ClassA infraction. Each day that the transferor knows of the falsity of thestatement made in the disclosure document but fails to correct thatstatement through the filing, recording, and delivery of a correcteddisclosure 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 officeof the county recorder under section 8(a)(1) and 8(b) of thischapter; and
(2) fails to record the disclosure document;commits a Class A infraction.
(b) The failure of a transferee to record a disclosure documentwithin the period allowed under section 8(a) of this chapter is not aninfraction under this section if the disclosure document:
(1) was not delivered to the transferee within the time allowedunder section 2 of this chapter; or
(2) contains one (1) or more false statements about substantivematters.
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 theexceptions set forth in this section.
(b) A buyer of property who finances the purchase of the propertythrough a mortgage loan is not required under section 2, 4, or 5 ofthis chapter to deliver a disclosure document to the mortgagee thatprovides the mortgage loan.
(c) A person who lends money and takes a mortgage on propertyto secure the loan is not required under section 8 of this chapter to:
(1) record a disclosure document concerning the property in theoffice of the county recorder of the county in which theproperty 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 aninfraction defined in sections 10 through 12 of this chapter, theprosecuting attorney may obtain an order requiring the defendant tocomply 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 actionagainst another party to the transfer of property to recoverconsequential damages based upon a violation of this chapter. In anaction brought under this section, a party may recover reasonablecosts and attorney's fees.
As added by P.L.1-1996, SEC.15.