Practice of Real Estate and Required Disclosures
Indiana seller disclosure
Indiana's Seller's Residential Real Estate Sales Disclosure (IC 32-21-5) applies to residential transfers of one to four units. The seller discloses known conditions; the form is not a warranty and does not replace inspections. Certain transfers are exempt - confirm the statutory list, which includes court-ordered transfers, foreclosure and sheriff's deeds, and specified family or co-owner transfers. If the disclosure is not delivered as the statute requires, the buyer may have a rescission right.
Federal overlays
Lead-based paint: for pre-1978 housing the seller must disclose known information, provide the EPA pamphlet, and allow a 10-day inspection period; agents must ensure compliance. Fair housing protected classes under federal law are race, color, religion, sex, national origin, familial status, and disability; Indiana and local ordinances add classes, so verify the current list. RESPA, ECOA, and truthful advertising rules also apply.
Practice duties
Disclose material adverse facts you actually know. Do not guess about schools or neighborhood safety. Never steer, blockbust, or redline. Protect confidential information, supervise affiliated licensees, avoid commingling and conversion of escrow funds, disclose any personal interest as a principal, and respect antitrust limits - commissions are negotiable and competitors may not fix prices, divide markets, or boycott.
Traps
Believing "as-is" waives disclosure. Volunteering stigmatizing information you are not required to disclose. Thinking a buyer's agent may hide a material fact. Advertising without the brokerage name.
Rule of thumb
If the defect is material and the seller knows it, disclose it. If it describes a protected class, it may never be a factor.