Indiana's homestead standard deduction for the 2026 assessment date is $40,000 on a qualifying principal residence. A property must receive this deduction to qualify for the 1% circuit-breaker property tax cap. Apply with the county auditor on Form HC-10 or the sales disclosure form at purchase.

Calendar the January 15 filing deadline that applies when taxes are first due, and use the official form instructions for the year on your assessment notice.

Who qualifies, and how the amount is changing

The homestead standard deduction is authorized by IC 6-1.1-12-37. Official Department of Local Government Finance (DLGF) materials and the state's property tax benefits form describe a homestead as residential real property, including a house or garage, that an individual uses as a principal residence in Indiana, and certain mobile or manufactured homes. The homestead may consist of a dwelling and a garage, up to one acre of land immediately surrounding the dwelling, any number of decks, patios, gazebos, or pools, one additional residential yard structure, and one additional building that is not part of the dwelling, is used predominantly for a residential purpose, and is not used as an investment or rental property.

There is generally one standard deduction per married couple or individual, with narrow exceptions in the statute, including certain spouses who maintain separate homesteads in different states, and a limited ability to receive the deduction on two properties in the same tax cycle after a mid-year move. Even if the land is vacant or the dwelling is incomplete on the assessment date, the property may still qualify in the circumstances the statute describes. Read the official form and ask the county auditor before you assume a second property can be treated as a homestead.

The deduction amount is not a permanent $40,000 figure for every future year. The official property tax benefits form states that for assessment dates after December 31, 2024, the total amount of the deduction is $48,000 in 2025, $40,000 in 2026, $30,000 in 2027, $20,000 in 2028, $10,000 in 2029, and $0 beginning with the 2030 assessment date and each assessment date after that. Use the amount that matches the assessment year on your notice, not a figure from an older tax bill. A supplemental homestead deduction may also apply; confirm current rules with the auditor or DLGF, because legislation has been changing these deductions.

The 1% circuit-breaker cap is a separate benefit that depends on this filing. The DLGF circuit-breaker fact sheet states that a property must receive the homestead standard deduction in order to receive the 1% cap. Missing the deduction can leave a principal residence in a higher cap category.

How and when to apply

Complete, sign, and file Form HC-10 (Claim for Homestead Property Tax Standard/Supplemental Deduction) with the county auditor where the homestead is located, or apply in the homestead section of the sales disclosure form when you buy the property. Official instructions say applications must be completed, signed, and filed on or before January 15 of the calendar year in which the property taxes are first due and payable, unless another rule is noted. If the application is mailed, it must be postmarked on or before the last day for filing. Approved deductions appear on the tax bill the year following the assessment date.

If you change the use of homestead property, official materials warn that you must file a certified statement with the auditor notifying the county of the change of use within 60 days, subject to the statute. Do not assume a deduction continues after the home is rented or is no longer your principal residence.

Bring identification, the parcel number, and closing documents if you are a new owner. A licensed local real estate agent can point you to the auditor's office, but the auditor, not the closing table alone, determines whether the deduction is granted. Check the next tax bill to confirm that the homestead deduction and, if you qualify, the 1% cap appear as expected.

After you file, keep a copy of the stamped or acknowledged application and check the following tax bill for the deduction and, if you qualify, the 1% cap. If you sell the home or stop using it as your principal residence, file the certified change-of-use statement with the auditor within 60 days, as official materials require. The deduction amount is scheduled to decline after 2026, so a 2025 bill that showed $48,000 does not fix the 2026 figure at that same number. For later assessment dates, use the official property tax benefits form: $30,000 in 2027, $20,000 in 2028, $10,000 in 2029, and $0 beginning in 2030.

FAQ

What is the homestead standard deduction for 2026?

The official property tax benefits form lists $40,000 for the 2026 assessment date, as part of a scheduled phase-down of the deduction in later years.

Does the homestead deduction automatically give me the 1% tax cap?

The property must be receiving the homestead standard deduction in order to receive the 1% circuit-breaker cap, according to DLGF.

How do I apply?

File Form HC-10 with the county auditor, or apply in the homestead section of the sales disclosure form when you purchase the property. The usual deadline is January 15 of the year the taxes are first due.

Can I claim the deduction on more than one Indiana home?

Generally there is one standard deduction per married couple or individual, with only the limited exceptions described in IC 6-1.1-12-37. Ask the county auditor before you assume a second property qualifies.

Next step

If you occupy the home as your principal residence, file Form HC-10 or the homestead section of the sales disclosure form with the county auditor, and ask a licensed local real estate agent or the auditor to confirm the $40,000 2026 amount and the January 15 deadline.

Sources: Department of Local Government Finance, Property Tax Benefits Form; Department of Local Government Finance, Fact Sheet on Circuit Breaker Caps; Form HC-10, Claim for Homestead Property Tax Standard/Supplemental Deduction.

The Indiana Housing and Community Development Authority (IHCDA) offers down payment assistance with its homebuyer loans. Next Home provides non-forgivable assistance of 2.50% or 3.50% of the purchase price, not exceeding appraised value, according to IHCDA's program page. First Step also offers non-forgivable down payment help with a 30-year fixed FHA or conventional loan for qualifying first-time buyers.

Who can use these programs?

IHCDA's Homeownership Programs page describes several options. First Step is for a first-time homebuyer, or a purchase in a targeted census tract, and includes down payment assistance, a 30-year fixed-rate mortgage, FHA or conventional financing, non-forgivable DPA, and a $250 reservation fee. Step Down is a rate-only purchase option for first-time buyers or targeted-tract purchases, without the same DPA description. Next Home is available more broadly and lists DPA of 2.50% or 3.50% based on the purchase price, not to exceed the appraised value, with an FHA or conventional 30-year fixed-rate loan. Next Step is a refinance program for people who already have certain IHCDA loans.

IHCDA's Homeownership Program Guide (dated for use in 2026) defines a first-time homebuyer as someone who has not, at any time during the three years preceding the application, had an ownership interest in a principal residence. Targeted areas and eligible veterans are exempt from that first-time requirement. Prior ownership of some mobile homes may be treated differently than a conventional house; the guide has specific rules, so ask a participating lender rather than guessing.

Borrowers must meet income limits and purchase-price (acquisition) limits that vary by county. The home has to be a qualifying dwelling and the borrower's principal residence. IHCDA also requires a minimum FICO credit score that meets the requirement set by IHCDA and/or the master servicer. The guide does not print a single fixed score for every product and year, so use the current lender matrix rather than an outdated number from a blog.

The reservation fee is $250 and is non-refundable. The potential buyers must have a valid real estate contract before the loan is reserved. All mortgages must close at the interest rate reserved in IHCDA's system.

How the down payment assistance works

IHCDA offers DPA as a loan secured by a second mortgage. The assistance can be used for down payment, closing costs, pre-paid items, and realtor compensation, according to the program guide. A borrower using DPA is not eligible to receive cash back at closing except as the guide allows. Next Home DPA is non-forgivable. The official page and the guide both treat the second mortgage as due when the first mortgage is terminated, the property is no longer used as a primary residence, or another maturity event in the second-mortgage documents occurs. There is no proration associated with the IHCDA DPA loan, the guide says, and IHCDA will not allow the second mortgage to be subordinated except as the guide describes.

For Next Home, use the official 2.50% or 3.50% figures and the "purchase price or appraised value, whichever is less" limit in the guide. For First Step, the landing page confirms that non-forgivable DPA is part of the product, but the exact percentage can be product- and year-specific. Ask a participating lender for the current First Step assistance amount in writing, and read the current program guide, rather than relying on an unofficial summary.

Work only with an IHCDA participating lender. Income, first-time or targeted-area status, credit, and the second-mortgage terms are reviewed on the file you actually submit. Federal recapture tax can apply to some bond-funded loans if the home is sold and certain thresholds are not met; IHCDA provides a recapture notice, and the lender should explain it before closing.

Do not rely on an unofficial blog for a First Step assistance percentage or for a single numeric credit-score floor. IHCDA's program page and the 2026 Homeownership Program Guide are the documents to read with the lender, and both can be updated. Income and acquisition limits vary by county, so a quote that worked in one county may not work in another. Ask whether the property is in a targeted census tract, whether veteran status changes the first-time-buyer rule, and how the $250 reservation fee will be collected. Step Down is a rate-only option and Next Step is a refinance program; neither should be confused with Next Home's 2.50% or 3.50% down payment assistance.

FAQ

How much down payment assistance does Next Home provide?

IHCDA lists 2.50% or 3.50% of the purchase price, not to exceed the appraised value, as a non-forgivable second mortgage with an FHA or conventional 30-year fixed first mortgage.

Do I have to be a first-time buyer?

First Step generally requires it, unless you are buying in a targeted census tract or meet another exemption. The program guide defines a first-time buyer as someone who has not had an ownership interest in a principal residence during the past three years. Eligible veterans and targeted areas can be exempt. Next Home is also open to repeat buyers.

Is the assistance forgiven over time?

Next Home and First Step DPA are described as non-forgivable. The second mortgage is typically due in full if the first mortgage is paid off or refinanced, or if the home is no longer the primary residence, subject to the loan documents.

What does the $250 fee pay for?

IHCDA charges a $250 reservation fee, which the program guide states is non-refundable, when the loan is reserved.

Next step

Talk with an IHCDA participating lender and a licensed local real estate agent about current county income and price limits, the First Step or Next Home second-mortgage amount, and whether you meet the first-time, veteran, or targeted-area rules.

Sources: Indiana Housing and Community Development Authority, Homeownership Programs; IHCDA Homeownership Program Guide; IHCDA Homebuyers.

An Indiana property owner may appeal an assessment by filing Form 130 with the local assessing official. If the Form 11 notice of assessment was mailed by the county before May 1, the deadline is June 15 of the assessment year.

If the notice was mailed on or after May 1, the deadline is June 15 of the year the tax bill is mailed. Further review is before the county Property Tax Assessment Board of Appeals (PTABOA), then the Indiana Board of Tax Review.

How the deadline and the informal meeting work

The Department of Local Government Finance (DLGF) November 2025 assessment-appeals fact sheet is the official consumer summary. File a separate Form 130 for each parcel, any time after the assessing official's action, but not later than those June 15 dates. If you receive a Form 11 or Form 11-A, initiate the appeal by June 15 under the rules above. If no Form 11 or 11-A is sent, the tax bill serves as the notice of assessment, and you initiate an appeal by June 15 of the year the tax bill was sent.

Indiana law does not require a taxpayer to submit an appraisal in order to appeal. DLGF notes that the Indiana Tax Court has called an appraisal properly trended to the valuation date the best evidence, but not the only acceptable evidence. Useful evidence can include a sale of the subject property, sales of comparable properties, purchase offers, an appraisal by a licensed appraiser, and, for income-producing property, capitalized income and expense information. The assessment last determined by an assessing official is presumed to equal the property's true tax value until that presumption is rebutted. However, the county or township assessor has the burden of proof when the assessment increased by more than 5% over the preceding assessment date, unless the increase was based on substantial renovations or new improvements, zoning, or uses that were not considered in the prior year's assessment.

Upon receipt of the petition, IC 6-1.1-15-1.2 requires the assessing official to schedule a preliminary informal meeting. At that meeting, the taxpayer and the official exchange the information each side is relying on. After the meeting, the official reports the results to the PTABOA.

The PTABOA hearing and what comes next

The PTABOA is a three- or five-member board of people knowledgeable in the valuation of property, appointed as the fact sheet describes. The county assessor is a non-voting member. The PTABOA shall hold a hearing not later than 180 days after the appeal petition filing date, and shall mail notice of the date, time, and place at least 30 days before the hearing. Upon a showing of good cause, the board shall grant a written request for continuance filed at least 10 days before the hearing. A taxpayer may withdraw an appeal by filing a written request at least 10 days before the hearing. If a taxpayer or tax representative fails to appear, and no timely continuance, request to proceed without a hearing, or withdrawal is filed, the county assessor may impose a $50 penalty, which may itself be appealed.

If you are not satisfied with the PTABOA decision, or if the PTABOA fails to issue a determination before 180 days have passed since the petition was filed, you may appeal to the Indiana Board of Tax Review (IBTR) by filing Form 131. After the IBTR, review may be sought in the Indiana Tax Court and, subsequently, the Indiana Supreme Court. You do not have to hire a tax representative; you may represent yourself, or appoint a relative as the fact sheet allows, subject to the rules on paid representatives.

For 2025 pay 2026 taxes, DLGF says sales from 2024 were used to determine assessed value as of January 1, 2025. The assessed value should reflect the price that would induce the owner to sell and a buyer to buy, in the property's current use at the time of assessment. A circuit-breaker cap can limit the tax bill, but it is not a substitute for appealing an incorrect assessment. Pay the tax as required while an appeal is pending, following the treasurer's instructions, so penalties do not accrue on the undisputed portion.

File a separate Form 130 for each parcel, and do not wait until you receive the tax bill if a Form 11 was already mailed before May 1. Bring comparable sales, photographs, and, if you have one, an appraisal trended to the valuation date, even though an appraisal is not required. At the informal meeting, take notes on what the assessor says about the increase, especially if the value rose more than 5% and the burden may shift under the rule DLGF describes. If you cannot attend the PTABOA hearing, file a written continuance at least 10 days in advance; a failure to appear can bring a $50 penalty. Form 131 to the Indiana Board of Tax Review is the next official step if the local board's decision is unfavorable or if 180 days pass with no determination.

FAQ

What form do I file, and when is it due?

File Form 130 with the local assessing official. If the Form 11 was mailed before May 1, the deadline is June 15 of the assessment year. If it was mailed on or after May 1, the deadline is June 15 of the year the tax bill is mailed.

Do I need an appraisal to appeal?

No. Indiana law does not require an appraisal, though a trended appraisal can be strong evidence. Sales of the subject or of comparable properties can also support the appeal.

What is the PTABOA?

It is the county Property Tax Assessment Board of Appeals, a three- or five-member local board that hears assessment appeals after the informal meeting with the assessor.

What if the PTABOA does not decide within 180 days?

You may appeal to the Indiana Board of Tax Review on Form 131 if you disagree with the decision or if no determination is issued within 180 days after the petition was filed.

Next step

If you disagree with an assessment, file Form 130 by the applicable June 15 deadline, gather comparable sales, and ask a licensed local real estate agent or a property-tax professional to help you prepare for the informal meeting and the PTABOA hearing.

Sources: Department of Local Government Finance, Fact Sheet on Assessment Appeals; Form 130, Taxpayer's Notice to Initiate an Appeal; Indiana Board of Tax Review.

Indiana's circuit-breaker credits cap property tax at 1% of gross assessed value for a homestead, 2% for other residential property, long-term care property, and agricultural land, and 3% for nonresidential property and personal property. A homestead must receive the standard deduction to get the 1% cap.

The Department of Local Government Finance (DLGF) explains that the cap does not change the local tax rate; it credits the amount that would otherwise exceed the cap.

How the caps work

Beginning with 2010 tax bills, property owners have been entitled to a property tax cap, or circuit-breaker credit, on the amount of property taxes over those percentages of gross assessed value. Local levies still set the tax rates for counties, townships, cities and towns, school corporations, library districts, and other special districts. If the total tax liability after other deductions and credits exceeds the cap, the county auditor applies a circuit-breaker credit for the excess.

DLGF's November 2025 fact sheet uses this example. A homestead has a gross assessed value of $100,000. Under the 1% cap, the maximum tax that may be imposed is $1,000. If the liability after other deductions and credits is $2,100, the auditor applies a circuit-breaker credit of $1,100 to reduce the bill to $1,000.

The classification of the property controls which percentage applies. A homestead is an individual's principal place of residence consisting of a dwelling, a garage, and up to one acre of immediately surrounding real estate, plus the additional residential features the fact sheet lists. The property must receive the homestead standard deduction under IC 6-1.1-12-37 in order to receive the 1% cap. Residential property that is not a homestead, including a single-family dwelling that is not part of a homestead, a building with two or more dwelling units, land rented for manufactured or mobile homes, and, beginning with Pay 2025, residential yard structures, is in the 2% category. Long-term care property and agricultural land are also 2%. Nonresidential property and personal property are 3%.

Assessed value is still supposed to reflect market value-in-use and is adjusted annually. The caps do not freeze the assessment. If the assessed value rises, the dollar cap rises with it, because the cap is a percentage of gross assessed value. If you believe the assessment is too high, the appeal path is Form 130 and the county Property Tax Assessment Board of Appeals, which is a separate process from the circuit-breaker credit.

What to check on a bill or before you buy

On a tax bill, look for the assessed value, the homestead deduction if you applied, the other deductions, the calculated tax, and any circuit-breaker credit. If you occupy the home as your principal residence and do not see a homestead deduction or a 1% cap, contact the county auditor. You may still be able to file, subject to the deadline, or you may need to correct a classification.

If you are buying a home, do not rely only on a listing's "estimated taxes." Ask whether the current owner has the homestead deduction, whether you will file Form HC-10 or use the sales disclosure form, and whether any part of the property (additional acreage, a rental unit, or a commercial use) might fall under a 2% or 3% cap. A two-unit building that is not your homestead is not automatically in the 1% category.

The caps are a credit against the tax, not a change in the posted rate. A local rate increase can still raise a bill up to the cap. For more explanation, DLGF points to its Tax Bill 101 page and to the county auditor.

Because the cap is a percentage of gross assessed value, an assessment increase raises the dollar ceiling even if the local rate is unchanged. That is why an assessment appeal on Form 130, when the value looks too high, is a separate and useful step from simply checking the circuit-breaker line on the bill. A homestead that lost the standard deduction, or a buyer who has not yet filed Form HC-10 or the sales disclosure homestead section, may see a 2% cap, or a higher bill, until the deduction is in place. Ask the county auditor how a mid-year purchase is treated, and use DLGF's Tax Bill 101 page if the bill's line items are unclear.

FAQ

What are Indiana's property tax caps?

DLGF lists 1% of homestead property; 2% of residential property, long-term care property, and agricultural land; and 3% of nonresidential property and personal property, as a share of gross assessed value.

Does every house automatically get the 1% cap?

No. The property must be a homestead that receives the homestead standard deduction in order to receive the 1% cap.

Do the caps freeze my assessed value?

No. Assessments continue to reflect market value-in-use. The cap limits the tax to a percentage of the current gross assessed value.

Who applies the circuit-breaker credit?

The county auditor applies a credit for the amount of tax that exceeds the cap after other deductions and credits are calculated.

Next step

Review your tax bill or a property you are buying for the homestead deduction and the circuit-breaker percentage, and ask a licensed local real estate agent or the county auditor to confirm whether the 1% cap will apply once you file.

Sources: Department of Local Government Finance, Fact Sheet on Circuit Breaker Caps; Department of Local Government Finance, Tax Bill 101.

Indiana does not levy a statewide realty transfer tax on the sale price of a home. Most conveyances still require a sales disclosure form, generally with a $20 filing fee paid to the county auditor, and the county recorder will not record the deed without evidence that the approved form was filed.

What the sales disclosure form is for

IC 6-1.1-5.5 requires a sales disclosure form for a conveyance, which the statute defines as a transfer of a real property interest for valuable consideration. The form is prescribed by the Department of Local Government Finance (DLGF) as Form 46021. Parties complete and sign it, and, before filing with the county auditor, submit it for review of accuracy and completeness as the statute describes. The auditor reviews the form, processes any deduction for which the buyer is applying, and forwards information used in the assessment system. A person who signs the form must attest in writing, under penalties of perjury, that to the best of that person's knowledge and belief the information is true and correct.

This form is not the same document as the seller's residential property condition disclosure under IC 32-21-5. The sales disclosure form is a tax-and-assessment filing tied to the conveyance. The residential disclosure is about the known physical condition of a one-to-four-unit home. A closing may involve both.

IC 6-1.1-5.5-4 says a person filing the sales disclosure form shall pay a fee of $20 to the county auditor, except as provided in subsection (b). No fee is due if the conveyance is to a charity, or if it is under a conveyance document described in section 2(a)(2) or 2(a)(3) of the chapter. Half of the fee revenue stays in a county sales disclosure fund; half goes to a state assessment training fund. Ask the closing attorney or the auditor if you believe an exception applies.

The form also matters for recording. IC 6-1.1-5.5-6 says the county auditor may not accept a conveyance document if the signed, attested sales disclosure form is not included, or if the form lacks required information. The county recorder shall not record a conveyance document without evidence that the parties have filed with the auditor a sales disclosure form approved as eligible for filing. In practical terms, a deed that is otherwise ready still will not be recorded until this filing is done.

What you may still pay at the recorder, and how to read the settlement statement

The $20 sales disclosure fee is not a transfer tax calculated on the purchase price, and it is not the recorder's fee for recording the deed or a mortgage. Recording fees are charged by the county recorder under separate rules and can include per-document or per-page amounts. Some counties may also collect other local charges. Those amounts are not a statewide tax of $0.37 per $100, or any similar percentage of the price. If a settlement statement uses the words "transfer tax" or "stamps," ask the closing attorney which official fee is actually being collected.

The sales disclosure form can also be used, in the section the DLGF identifies, to apply for the homestead standard deduction at the time of the sale. That deduction, and the 1% circuit-breaker cap that depends on it, are separate from the $20 filing fee. Buyers who will occupy the home as a principal residence should ask whether the homestead application is being made on the sales disclosure form or on Form HC-10 with the county auditor, and should calendar the filing deadline.

Knowingly and intentionally falsifying the value of transferred real property, or omitting or falsifying required information on the form, is a Level 5 felony under IC 6-1.1-5.5-10. Use the actual consideration and the information the form requires. A licensed local real estate agent and the closing attorney can help assemble the form, but the parties sign it.

Knowingly falsifying the sales price or other required information on the form is a Level 5 felony under IC 6-1.1-5.5-10. That is one reason closing staff will ask both parties to review the numbers carefully before they sign. The form can also be used to start a homestead standard deduction application, which matters if you will occupy the home as your principal residence and want the 1% circuit-breaker cap. Recording fees charged by the county recorder are separate from the $20 sales disclosure fee, and they are local charges. Indiana does not impose a statewide transfer tax calculated as a percentage of the sale price, and unofficial articles that quote a uniform per-$100 tax or a single statewide deed fee are not describing this statute.

FAQ

Does Indiana charge a state tax on the sale price when a house is sold?

No statewide realty transfer tax applies to the purchase price. The usual state-required charge at this step is the $20 sales disclosure form fee paid to the county auditor, unless a statutory exception applies.

Can the deed be recorded without the sales disclosure form?

No. The auditor may not accept the conveyance document without the completed form, and the recorder shall not record it without evidence that the approved form was filed.

Is the $20 fee the same as the recorder's recording fee?

No. The $20 fee is for filing the sales disclosure form with the auditor. Recording the deed or mortgage is a separate recorder charge.

Are there exceptions to the $20 fee?

Yes. IC 6-1.1-5.5-4 waives the fee for a conveyance to a charity and for certain conveyance documents described in section 2(a)(2) or 2(a)(3). Ask the auditor or closing attorney if you think an exception applies.

Next step

Ask your closing attorney or a licensed local real estate agent to show the $20 sales disclosure fee, any recorder charges, and any homestead application on a draft settlement statement before you close.

Sources: IC 6-1.1-5.5, Sales Disclosure Forms; Department of Local Government Finance, Sales Disclosure Form Information.

An Indiana seller of one-to-four-unit residential property must complete, sign, and give the statutory disclosure form to a buyer before an offer is accepted. If a disclosure or an amended disclosure that discloses a defect arrives after the offer is accepted, the buyer may nullify the contract in writing within two business days and recover any deposits.

When the form is due, and what it is not

Indiana Code chapter 32-21-5 applies to a sale, exchange, or lease with option to buy of residential real estate with not more than four dwelling units. The official Seller's Residential Real Estate Sales Disclosure form, and IC 32-21-5-10, require the owner to complete and sign the form and submit it to a prospective buyer before an offer for the sale is accepted. Before closing, an accepted offer is not enforceable against the buyer until the owner and the prospective buyer have signed the disclosure form.

After closing, failure of the owner to deliver a disclosure form does not by itself invalidate the transaction. A buyer also may not invalidate a transaction or a purchase contract because the buyer failed to sign a seller's disclosure form that the buyer has already received or acknowledged. In other words, the early-delivery rule is real, but a missing signature after the buyer has the form, or a missing form discovered only after closing, is not an automatic unwind of a closed deal.

The form is not a warranty, and it is not a substitute for inspections or warranties the buyer or owner may later obtain, under IC 32-21-5-9. The representations are the owner's, not the agent's. The statutory form is based on the seller's current actual knowledge. The official form also lists transfers that generally do not require the disclosure, including certain court-ordered transfers, foreclosure and deed-in-lieu transfers, some fiduciary transfers, transfers between co-owners, certain transfers to a spouse or a lineal relative, tax sales, transfers to or from a governmental entity, the first sale of a dwelling that has not been inhabited, and transfers to a living trust.

If a material change in the physical condition of the property occurs after the form is delivered, IC 32-21-5-12 requires the owner, at or before settlement, to disclose that change or to certify that the condition is substantially the same as when the form was provided.

The two-business-day rescission, and how buyers should use it

IC 32-21-5-13 is the buyer-protection that many people miss. If a prospective buyer receives a disclosure form or an amended disclosure form after an offer has been accepted, and that form discloses a defect, the buyer may, after receiving it and within two business days, nullify the contract by delivering a written rescission to the owner or the owner's agent. The buyer is not liable for nullifying the contract under that section and is entitled to a return of any deposits made in the transaction.

"Defect" has a statutory meaning in this chapter, so the two-day clock is about a disclosed defect on a late or amended form, not about every typographical change. Calendar the date you received the form. Put the rescission in writing and deliver it within two business days if you intend to walk away. After two business days, that particular statutory right expires.

Buyers still benefit from a professional home inspection, and from reading the form line by line, including questions about the structure, systems, and any known methamphetamine contamination in a residential structure, which the statute requires the form to address. Sellers should complete every item, deliver the form before anyone treats an offer as accepted, and amend it in writing if they later learn of a material change. A licensed local real estate agent can coordinate delivery, but the legal duties sit with the owner and the buyer under the statute.

Download the official Seller's Residential Real Estate Sales Disclosure at forms.in.gov (form id 16805) rather than relying on a memory of last year's version. Use it as a checklist with the inspection, not as a reason to skip the inspection. If you are the seller, update the form when you learn of a new defect, and do not assume an old form from a prior listing still speaks to the property's current condition. If you are the buyer, calendar two business days from the date you receive a form or an amendment that first discloses a defect, and put any nullification in writing within that window. A licensed local real estate agent or an Indiana real estate attorney can help you meet that deadline without relying on a verbal objection alone.

FAQ

When must the Indiana seller's disclosure be delivered?

The owner must complete, sign, and submit the form to a prospective buyer before an offer for the sale is accepted, under IC 32-21-5-10.

Can a buyer cancel if a defect first appears on a disclosure received after the offer is accepted?

Yes. IC 32-21-5-13 gives the buyer two business days after receiving that disclosure or amended disclosure to deliver a written rescission and to recover deposits.

Does a missing form automatically void a closed sale?

No. After closing, failure to deliver the form does not by itself invalidate the transaction.

Is the disclosure a warranty or a substitute for an inspection?

No. IC 32-21-5-9 says the form is not a warranty and may not be used as a substitute for inspections or warranties.

Next step

Ask a licensed local real estate agent or an Indiana real estate attorney to confirm that the disclosure was signed and delivered before offer acceptance, and to calendar the two-business-day rescission period if a later form discloses a defect.

Sources: IC 32-21-5, Residential Real Estate Sales Disclosure; Indiana Seller's Residential Real Estate Sales Disclosure form.