Under the Indiana Seller Disclosure Act (IC 32-21-5), which of the following transactions is NOT exempt from the requirement to provide a Seller's Residential Real Estate Sales Disclosure Form?
Correct Answer
C) A standard arm's-length sale between an unrelated buyer and seller
A standard arm's-length sale between an unrelated buyer and seller is NOT exempt from the Indiana Seller Disclosure Act. This is precisely the type of transaction the Act was designed to cover. The seller must complete and deliver the state-mandated disclosure form before or at the time an offer is accepted. All other options in this question represent statutory exemptions under IC 32-21-5.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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