In Indiana, an owner that sells his residence must complete and sign a Residential Real Estate Sales
Disclosure form and submit it to the prospective buyer before the owner accepts an offer. [IC § 32-
21-5-10] This Disclosure contains must accurately describe the condition of the real estate's foundation, mechanical systems, roof, structure,
water and sewer systems, any additions that may require improvements to the sewage disposal system, and any other matters the Indiana Real Estate Commission deems appropriate, all to the best knowledge and belief of the owner. [IC 32-21-5-7] The form provided by the Indiana Real Estate Commission (876 IAC 1-4-2) provides for
the owner's disclosure of hazardous conditions, including mold. Please note that the disclosure form is not a warranty by the owner or his agent
and does not substitute for any inspections or warranties that the prospective buyer or owner may
later obtain. [IC § 32-21-5-9]
However, the Residential Real Estate Sales Disclosure form does not apply to the first sale of a residence that has not been inhabited. [IC § 32-21-5-1] In this situation, it is more appropriate to look to the new home construction warranties provided by statute [IC § 32-27-2 et.al.] and the
sale contract. A builder may include certain warranties cited in the statute including, plumbing, electrical, ventilation, etc., but can also disclaim these warranties if certain criteria are met. [IC §§ 32-27-2-8 & 32-27-2-9]
A claimant-home owner who intends to file an action against a builder regarding a newly constructed residence must provide 60-days notice
to the builder prior to filing the action. [IC § 32-27-3-2] The builder then may respond within 21 days thereafter and may chose to inspect and
remedy the defect or dispute the claim entirely. [IC § 32-27-3-2] We would recommend that you contact our firm or another firm with expertise in real estate law to review your sales contract and fully explain any legal recourse you may have.
-- Michael T. Sawyier
