Selling a property where a homicide or other violent crime previously occurred can present unique challenges in Indiana. Some buyers or tenants may react negatively if they learn a homicide occurred on the property. In such a situation, it is natural to wonder if disclosing that particular piece of information is really necessary.
Before you make a decision, it is best to understand what the law requires.
What does Indiana law say?
Under Indiana law, as a property seller, you generally have no legal obligation to disclose that a homicide occurred on the property voluntarily. Indiana law considers a property’s past violent criminal events as psychological stigmas as opposed to material defects that should be mandatorily disclosed to the buyers.
There is an important caveat here.
If the buyer directly asks whether a death or violent crime occurred on the property, you may refuse to disclose that information. It is well within your rights as an owner. However, you may not issue a misleading statement. For example, you cannot claim the property lacks a history of homicide if it has one. Doing so can expose you to claims of fraudulent misrepresentation and legal action. Sometimes, buyers may learn about the property’s history through public records or websites, potentially jeopardizing the deal and destroying trust.
What should you do?
If you are confused about local disclosure obligations while selling a stigmatized property, consult an attorney experienced in Indiana real estate law. They can help explain the legal requirements and draft a sale agreement that mitigates the risk of complex real estate disputes.
