Indiana's Responsible Property Transfer Act requires:
Question & Answer
Review the question and all answer choices
Nothing
Stating the Act requires 'nothing' is factually incorrect; Indiana Code § 13-25-3 imposes affirmative disclosure obligations on sellers of commercial and industrial property, and failure to comply can expose a seller to civil liability and penalties.
Environmental disclosure for commercial/industrial property
Only residential disclosure
The RPTA does not apply to residential property transfers; Indiana's residential disclosure requirements are governed separately under the Indiana Residential Real Estate Disclosure Act (IC § 32-21-5), which does not include the same environmental disclosure framework as the RPTA.
Federal environmental reports
There is no federal law that mandates a standardized environmental disclosure report as a universal condition of every commercial property transfer; while CERCLA creates liability for contamination, the specific pre-transfer disclosure document required in Indiana is a creature of state law under the RPTA, not a federal mandate.
Why is this correct?
Answer B is correct because the Indiana Responsible Property Transfer Act specifically mandates that sellers of commercial and industrial properties provide an environmental disclosure document to the buyer prior to or at the time of transfer, covering known releases, storage tanks, and hazardous substances on the site. The Act is codified under Indiana Code § 13-25-3 and applies exclusively to commercial and industrial real estate transactions, not residential ones. This targeted scope reflects the legislative intent to address the heightened contamination risk associated with manufacturing, warehousing, and other non-residential land uses.
Continue Learning
Explore this topic in different formats
More Contracts Videos
Continue learning with related video lessons
Ready to Ace Your Real Estate Exam?
Access 2,000+ free video lessons covering all 11 exam topics.
