State guide

Buying or Selling a Home in Indiana: What You Need to Know

Indiana is a title-company closing state with no state real estate transfer tax, so closing costs tend to be lower than in many neighboring states.

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TL;DR

Indiana is a title-company closing state with no state real estate transfer tax, so closing costs tend to be lower than in many neighboring states. Sellers of one- to four-unit homes must complete a state Seller's Residential Real Estate Sales Disclosure, and buyers must sign a written buyer brokerage agreement before touring a home in person or virtually. The Indiana Real Estate Commission, agency rules under IC 25-34.1-10, and federal fair housing law set the baseline, with cities like Indianapolis and Bloomington adding extra local protections.

10 things every Indiana buyer or seller should know

  • In Indiana, most home closings are handled by a licensed title company, not a lawyer. The title company runs the title search, prepares closing documents, collects and disburses money, and records the deed under IC 27-7.3. You can choose to bring your own attorney, but Indiana law does not require one to close a residential sale.

  • Indiana does not charge a state real estate transfer tax, deed stamp, or documentary fee when a home changes hands. The only government cost tied to the transfer itself is the county recorder's recording fee, which is usually a small flat amount. This is a real cost difference compared with Illinois, Ohio, Kentucky, and Michigan, where transfer taxes can add hundreds to thousands of dollars at closing.

  • Sellers of one- to four-unit homes in Indiana must complete the state Seller's Residential Real Estate Sales Disclosure form under IC 32-21-5. The form covers what the seller actually knows about the foundation, roof, mechanical systems, water and sewer, and other major conditions. Sellers are not required to hire inspectors to uncover hidden defects, but hiding something they actually know about can lead to a lawsuit after closing.

  • If an Indiana seller delivers the Seller's Residential Real Estate Sales Disclosure to a buyer after the offer is already accepted, the buyer has a right to back out of the contract under IC 32-21-5-10. Buyers should make sure they receive the completed disclosure form at or before signing the purchase agreement. Getting it on time protects this rescission right and helps spot deal-breakers before earnest money is at risk.

  • Since August 17, 2024, any Indiana buyer working with an MLS-affiliated agent must sign a written buyer brokerage agreement before touring a home in person or virtually. The agreement spells out how long the agent represents the buyer, what areas or homes are covered, and how much the agent will be paid. This rule came out of the NAR settlement and is now baked into MLS rules across Indiana, including the Metropolitan Indianapolis Board of REALTORS (MIBOR).

  • Every Indiana property sale also requires a Sales Disclosure Form (Form SD-1) filed with the county assessor at or before the deed is recorded. SD-1 is a tax form under IC 6-1.1-5.5 that captures the sale price, the parties, and the parcel details so the assessor can update assessed values. It is a separate document from the Seller's Residential Real Estate Sales Disclosure, and most Indiana county recorders will refuse to record a deed without it.

  • Indiana uses the term 'limited agency' for what most states call dual agency, where one brokerage represents both the buyer and the seller in the same deal. Under IC 25-34.1-10-7, a broker may act as a limited agent only when both sides give written, informed consent before the conflict comes up. A limited agent cannot share the seller's lowest acceptable price, the buyer's highest offer, or either side's motivation or financial position.

  • Federal and Indiana law protect home buyers and renters from discrimination based on race, color, national origin, religion, sex, family status, and disability. Indiana's state statute is IC 22-9.5, enforced by the Indiana Civil Rights Commission. Indianapolis and Bloomington go further: their local ordinances add sexual orientation and gender identity as protected classes within those city limits, and agents, landlords, and sellers operating there must follow those expanded rules.

  • When the seller of an Indiana home does not live in Indiana, IC 6-3-4-16.5 requires that 3.23% of the net selling price be withheld at closing and sent to the Indiana Department of Revenue using Form WH-18. The closing agent or buyer is responsible for the withholding, and skipping it can leave them personally liable for the tax. Out-of-state sellers can apply for an exemption certificate in advance if the gain is exempt or otherwise covered.

  • Indiana maintains a public methamphetamine contamination registry under IC 13-14-7.5 for properties used as meth production sites. A property listed on that registry cannot be transferred for residential use until it has been cleaned up to state health standards and given a clearance certificate. Sellers who know about meth manufacturing on the property must disclose it on the residential disclosure form, and buyers should ask their agent to check the registry before closing.

The guides

Common questions

Do I need an attorney to close on a home in Indiana?
No. Indiana is not an attorney-closing state — a licensed title company typically runs the closing, prepares the documents, and records the deed under IC 27-7.3. You are free to hire an attorney to review your contract or attend the closing, but neither the buyer nor the seller is required to.
As a seller in Indiana, what do I actually have to disclose about my home?
Indiana sellers of one- to four-unit homes must complete the Seller's Residential Real Estate Sales Disclosure form under IC 32-21-5, covering known issues with the foundation, roof, mechanical systems, water, and sewer. The duty is tied to actual knowledge, so you do not have to hire inspectors to look for hidden problems, but you cannot hide something you already know about. Hand the completed form to the buyer at or before they sign the offer, otherwise the buyer can rescind the contract under IC 32-21-5-10.
Do I have to sign anything before I can tour homes in Indiana?
Yes. Since August 17, 2024, an MLS-affiliated agent in Indiana must have a written buyer brokerage agreement in place before showing you a home — in person or virtually. This rule came from the NAR settlement and is now part of MLS rules at MIBOR and the other Indiana boards. The agreement spells out how the agent represents you, for how long, and how their fee gets paid.
What is the Sales Disclosure Form SD-1 my closing agent keeps mentioning?
Form SD-1 is a tax form under IC 6-1.1-5.5 that gets filed with the county assessor whenever an Indiana property is sold. It records the sale price, the parties, and the parcel details so the assessor can update assessed values for property-tax purposes. Most Indiana county recorders will not record the deed without an SD-1, so the closing agent typically prepares and files it as part of closing.
What is 'limited agency' and how is it different from dual agency?
Limited agency is Indiana's name for what most states call dual agency: one brokerage represents both the buyer and the seller in the same deal. Under IC 25-34.1-10-7, both sides must give written, informed consent before the conflict actually arises. The limited agent can help the parties reach a deal but cannot share confidential information like the seller's lowest acceptable price or the buyer's highest offer.
Does Indiana charge a real estate transfer tax?
No. Indiana is one of the few states with no state-level real estate transfer tax, no deed stamp, and no documentary fee on the conveyance. The main government cost tied to the transfer is the county recorder's recording fee, which is usually a small flat amount. That makes Indiana closing costs noticeably lower than in Illinois, Ohio, Kentucky, or Michigan, where transfer taxes can add hundreds to thousands of dollars to the deal.
Can I back out if the seller's disclosure form comes after I sign the contract?
Often, yes. Under IC 32-21-5-10, if an Indiana seller delivers the Seller's Residential Real Estate Sales Disclosure after the offer has already been accepted, the buyer has a right to rescind the purchase agreement. Ask your agent to confirm you have received the completed disclosure before you sign, and keep a dated copy with your file.
What fair housing protections apply in Indianapolis and Bloomington?
Indiana's statewide fair housing law, IC 22-9.5, mirrors federal protections for race, color, national origin, religion, sex, family status, and disability, and is enforced by the Indiana Civil Rights Commission. Indianapolis and Bloomington have local human rights ordinances that add sexual orientation and gender identity as protected classes within those city limits. That means agents, landlords, and sellers operating in those cities must treat those characteristics as protected classes too.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.