The Indiana purchase and sale agreement is a legal document that one party, called the seller, signs with the other party, called the buyer, to determine the conditions under which they are going to transfer ownership of certain property.
The purchase agreement itself, however, doesn’t transfer any legal rights between the parties. It serves as a way for the parties to document all the details of their agreement.
By creating the purchase agreement, the parties materialize their deal, which prevents any future misunderstandings and disputes. The purchase agreement is mostly used for more complex property transfers, like real estate transfers, or for transfers where the purchase price is over $500.
Indiana Purchase and Sale Agreement Form
This document usually includes information about the seller and the buyer, a description of the property, the purchase price, details about the financing, mandatory disclosures required by federal or state law, and other terms and conditions of the property transfer.
The Indiana purchase agreement is also known as:
Other Names for Indiana Purchase Agreement
Indiana sale and purchase agreement
Indiana purchase and sale agreement
Indiana sale and purchase contract
Indiana purchase and sales contract
However, it all refers to one document that provides the terms and conditions for the property transfer in Indiana.
Purchase Agreement Indiana Laws & Requirements
The Indiana legislature doesn’t provide any formal requirements for the Indiana purchase agreement. However, there are a few disclosures that must be included in the purchase agreement or submitted as a separate document next to the purchase agreement.
Purchase Agreement Required Disclosures in Indiana
In this section, you can find the list of disclosures that must be included in the Indiana purchase agreement template, as required by federal and state laws and regulations:
Lead-Based Paint Disclosure: 42 U.S. Code § 4852d provides that the seller is obliged to inform the buyer about the lead-based paint hazard at the property. This is required for every property built before 1978 or for properties where there is a known lead-based paint hazard.
Seller’s Residential Real Estate Sales Disclosure: Before accepting the offer from the buyer, the seller must fill out and give the buyer a form stating all the defects and damages to the property. (§ 32-21-5-10)
Common Interest Community Disclosure: The seller must disclose to the buyer if the property is governed by the homeowner’s association. (§ 32-21-5-8.5)
Common Types of Purchase Agreements in Indiana
This section provides all the types of purchase agreements used in Indiana:
Types of Purchase Agreement
Residential real estate purchase agreement. Most often used type of purchase agreement. It is used to determine the conditions for selling and purchasing a house, apartment, or other kinds of property used for residential purposes.
Commercial real estate purchase agreement. You can use this type of purchase agreement to sell and purchase office space, warehouses, manufacturing facilities, and other kinds of commercial properties.
Vehicle purchase agreement. Known as the motor vehicle bill of sale. You can use it to transfer ownership of a car, motorcycle, truck, and other kinds of motor vehicles.
Business purchase agreement. Used to provide terms for transferring the company from the seller to the buyer.
Land purchase agreement. You can use it to provide terms and conditions for the transfer of agricultural, residential, commercial, or other kinds of land in Indiana.
Stock purchase agreement. This type of purchase agreement is used for selling stocks and shares in companies.
Purchase Agreement in Indiana FAQ
Yes, the purchase agreement is a legally binding document in Indiana. The purchase agreement becomes legally binding the moment both parties sign it.
Yes, the Indiana sales agreement needs to state the purchase price. The purchase price is an essential element of the Indiana purchase and sale agreement. Therefore, you should always include it when drafting the purchase agreement.
No, purchase and sales agreements in Indiana don’t need to be notarized. The reason for this is that the purchase agreement itself doesn’t transfer any legal rights between the parties who have signed it.
Yes, the seller can back out of the Indiana purchase agreement in case the buyer fails to meet the contingencies set in the Indiana purchase agreement.