How to Sell a House By Owner in Indiana: Disclosures, Deed, and Closing

To sell a house by owner in Indiana, you deliver two required disclosures to the buyer, sign a purchase agreement covering the deal’s material terms, prepare and notarize a deed, close the sale (usually through a title company), record the deed with the county, and address federal tax reporting after closing. Indiana imposes no state real estate transfer tax and does not require an attorney at closing, which keeps the paperwork manageable when you handle it yourself.

Disclosures You Must Give the Buyer Before Accepting an Offer

Two disclosure obligations apply to a private residential sale in Indiana. Miss either one and you risk giving the buyer a free exit from the contract, or worse, a claim against you after closing.

The Seller’s Residential Real Estate Sales Disclosure (Form 46234)

Indiana Code 32-21-5 requires every residential seller to complete State Form 46234 and deliver it to the buyer before accepting an offer.¹ The form is available from the Indiana State Department of Health.²

The form covers major systems (appliances, electrical, plumbing, heating and cooling), the structure (roof, foundation, drainage, settling), and environmental issues (radon, mold, lead paint, storage tanks, flood plain status, soil contamination). For each item, you mark it defective, not defective, or “do not know.” The law uses a “defect” standard, meaning a condition that would significantly hurt the property’s value, impair occupant health or safety, or shorten the home’s expected life. You aren’t required to hire an inspector or hunt for problems, but you cannot dodge questions about issues you actually know about.

If you fail to deliver the form before accepting an offer, the contract is not enforceable against the buyer until both parties sign the disclosure. If you deliver it late and it reveals a defect, the buyer gets two business days to cancel and recover any deposits. After closing, a missing disclosure alone won’t void the sale, but it leaves you exposed to claims about undisclosed defects.¹

Federal Lead Paint Disclosure for Pre-1978 Homes

If your house was built before 1978, federal law requires an additional disclosure. You must give the buyer the EPA pamphlet “Protect Your Family From Lead in Your Home,” disclose any known lead-based paint or hazards, and share any inspection reports you have.³ Both parties sign a lead warning statement that becomes part of the purchase contract. The buyer also gets a 10-day window to arrange a lead inspection before the contract binds them, unless they waive that right in writing. This requirement comes from Section 1018 of the Residential Lead-Based Paint Hazard Reduction Act, and violations carry federal penalties.

Drafting the Purchase Agreement

The purchase agreement is the contract that controls the deal. Without an agent, you’re responsible for making sure every material term is captured. Indiana doesn’t mandate a specific form, but the agreement should cover:

The purchase price and the earnest money deposit (often 1% to 2% of the price in residential deals, higher in competitive markets).
The full legal description of the property, copied from your current deed or your latest property tax bill. A street address alone is not enough.
Contingencies, most commonly financing, appraisal, and inspection. Inspection windows typically run 7 to 10 days from contract acceptance.
The closing date and the date the buyer takes physical possession.
What stays with the house and what does not. Ambiguity about fixtures and personal property is a leading cause of post-closing disputes.

Indiana doesn’t require an attorney at closing, but a few hundred dollars for legal review of the purchase agreement is one of the better values in a private sale. If you use a template, confirm it reflects Indiana law rather than a generic multi-state form.

Preparing the Deed

The deed is what actually transfers ownership. Indiana recognizes several types, but two matter for most residential sales.

A warranty deed is the standard. By signing it, you guarantee that you hold clear title, that you have the legal right to sell, and that the buyer won’t face undisclosed claims against the title. Most buyers and their lenders expect a warranty deed.

A quitclaim deed transfers only whatever interest you happen to hold, with no title guarantees. It’s common between family members or in divorce settlements, but arms-length buyers rarely accept one.

Indiana requires every deed to carry a notarial acknowledgment before it can be recorded.⁴ The deed must include the mailing address where future property tax notices should be sent, the names of the grantor (you) and grantee (the buyer), the full legal description matching county records, the parcel identification number, and a “prepared by” statement identifying who drafted the document.⁵ Copy the legal description from your existing deed rather than improvising, because even minor discrepancies can get the deed rejected at the recorder’s office.

The Sales Disclosure Form for Tax Assessment (Form 46021)

This is a separate document from the property condition disclosure and often gets confused with it. State Form 46021 is a tax filing required under IC 6-1.1-5.5 for every real estate sale in Indiana.⁶ County assessors use the sale price reported on the form to calibrate property valuations across the area.

Both you and the buyer sign it. The form captures the final sale price, whether any personal property was included, and the relationship between the parties (to flag non-arm’s-length transactions). It’s filed with the county auditor with a $10 filing fee.⁷ The buyer can also use this form to apply for property tax deductions like the homestead deduction.⁸

Paying Off Your Existing Mortgage

If you still owe on a mortgage, request a formal payoff statement from your loan servicer well before closing. The statement shows the exact balance due on a specific date, includes accrued interest, and gives a per-day interest figure in case closing shifts. Most servicers must send the statement within seven business days of your request. You can usually request it online, by phone, or through your servicer’s portal.

At closing, the title company or escrow agent sends payoff funds directly to your lender from the sale proceeds. Once the lender receives full payment, they are responsible for recording a lien release with the county recorder, which clears the mortgage from your title record. If weeks pass after closing without a release recorded, follow up with your servicer. An unrecorded lien release creates a cloud on the title that becomes your problem as much as the buyer’s.

Closing the Sale

Closing is the meeting where you sign the deed, the buyer delivers funds, and title changes hands. Indiana doesn’t require an attorney to run it, and most private sellers hire a title company or escrow agent to manage the logistics.

A title company performs the title search (verifying no unexpected liens, judgments, or competing ownership claims), holds the buyer’s funds in escrow, coordinates document signing, and prepares a settlement statement itemizing every cost for both sides. Title search fees generally run a few hundred dollars, with escrow and closing coordination fees on top. Without an agent steering you toward a specific company, you can shop and compare.

Title insurance comes in two flavors. A lender’s policy protects only the buyer’s mortgage company and is almost always required when the buyer finances the purchase. An owner’s policy protects the buyer against title defects discovered after closing, covering the full purchase price plus legal costs. Indiana’s Department of Insurance publishes a rate comparison tool for title insurers.⁹ Who pays for the owner’s policy is negotiable and should be spelled out in the purchase agreement.

Watch for Wire Fraud

Wire fraud targeting real estate closings has become common. Scammers compromise email accounts and send altered wiring instructions that redirect closing funds to accounts they control. If you’re receiving sale proceeds by wire transfer, verify wiring instructions by calling a phone number you already have on file for your title company. Be deeply suspicious of any last-minute changes to wire details sent by email. Call to confirm funds arrived immediately after the transfer. Once wired money reaches a fraudulent account, recovery is rare.

Recording the Deed With the County

After closing, the signed and notarized deed must be filed with the county recorder in the county where the property sits.⁵ Recording is what makes the transfer official in the public record, and Indiana law gives recorded deeds priority over unrecorded ones, so this step matters. The title company usually handles recording as part of its closing services, but confirm this rather than assume.

Recording fees for a standard deed total about $50 in most Indiana counties: a $25 base fee plus mandatory surcharges for the county general fund, the recorder’s perpetuation fund, identity security, and elected officials training. Marion County charges a $35 base, plus a $10 assessor’s transfer fee per parcel and a $20 sales disclosure fee, bringing the total closer to $65.¹⁰¹¹

Once the recorder processes the deed, the county auditor updates ownership records and redirects future property tax bills to the buyer. The auditor also processes Form 46021 from closing.

Federal Tax Reporting After the Sale

Selling triggers federal tax reporting whether or not you used an agent. Most homeowners selling a primary residence owe no capital gains tax, but the rules still apply.

The Capital Gains Exclusion

Under Section 121 of the Internal Revenue Code, you can exclude up to $250,000 in profit from the sale of your principal residence ($500,000 if married filing jointly). To qualify, you must have owned and used the home as your primary residence for at least two of the five years before the sale.¹² Surviving spouses who sell within two years of a spouse’s death may also qualify for the $500,000 amount.

Form 1099-S

The closing agent (typically the title company) is generally required to file IRS Form 1099-S reporting the sale proceeds, even when your gain is fully excludable. The 1099-S can be avoided if you provide a signed written certification confirming that the home was your principal residence, the price was $250,000 or less ($500,000 if married), the full gain is excludable under Section 121, and there was no period of nonqualified use after December 31, 2008.¹³ Without that certification, the form will be filed and you’ll need to report the sale on your tax return, even if no tax is owed.

FIRPTA (Foreign Sellers Only)

If you are a foreign national selling U.S. real property, the buyer is generally required to withhold 15% of the sale price under the Foreign Investment in Real Property Tax Act and remit it to the IRS.¹⁴ An exception applies when an individual buyer plans to use the home as a personal residence and the price is $300,000 or less.¹⁵ FIRPTA does not apply to U.S. citizens or resident aliens. If it applies to you, work with a tax professional before closing.

Records to Keep

Keep copies of every signed document: the purchase agreement, the deed, both disclosure forms (46234 and 46021), the settlement statement, and the lead-based paint disclosure if it applied. The IRS requires you to keep records supporting the home sale for at least four years after the tax year of the sale if you provided a 1099-S exemption certification.¹³ Beyond taxes, these records are your proof that you met every disclosure obligation. If a buyer later raises a claim about an undisclosed defect, the signed 46234 is your first line of defense.

1
Indiana General Assembly. Indiana Code Title 32, Article 21, Chapter 5 – Residential Real Estate Sales Disclosure
2
Indiana Government. Seller’s Residential Real Estate Sales Disclosure Form 46234
3
US EPA. Lead-Based Paint Disclosure Rule (Section 1018 of Title X)
4
Indiana General Assembly. Indiana Code Title 32, Article 21, Chapter 2, Section 32-21-2-3 – Notarial Acts and Recording
5
Indiana Recorders Association. Indiana Recording Manual and Desktop Reference
6
STATS Indiana. About the Property Sales Disclosure Form Data
7
Indiana Government. Sales Disclosure Form Instructions
8
Indiana Government. Sales Disclosure Form State Form 46021
9
Indiana Government. Title Insurance Rate Comparison Tool
10
Indiana Government. Recorder’s Fees Schedule
11
indy.gov. Record Your Deed
12
Office of the Law Revision Counsel. 26 USC 121 – Exclusion of Gain From Sale of Principal Residence
13
IRS.gov. Instructions for Form 1099-S Proceeds From Real Estate Transactions
14
Internal Revenue Service. FIRPTA Withholding
15
Internal Revenue Service. Exceptions From FIRPTA Withholding