Complete Guide To The Indiana Real Estate Purchase Contract

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The Documents That Make Up The Purchase Contract

Depending on what type of property it is that you are buying, the documents needed and information needed are slightly different. Residential homes are most of our business, so we will start with an explanation of the forms used and information needed to submit an offer on a residential home.

The Documents That Make Up The Purchase Contract For A Residential Home

For a residential home, which could be a free-standing single family residence, a duplex, a townhouse, or a condiminium, there are 6 main documents that makup a purchase contract. Technically speaking, in Indiana, the main form that the actual written on is titled the “Purchase Agreement”:

Buyer Broker Represenation Agreement
Mortgage preapproval or proof of funds (such as a bank statement)
Purchase Agreement
Sellers Property Disclosure
Lead Based Paint Disclosure (for homes build before 1978)
Addendum To Purchase Agreement Buyer Request For Seller to Pay Buyer Broker Compensation
Brokerage Disclosures
- Wiring Fraud Advisory Notice
- Agency Policies
- Affiliated Business Arrangement

Buyer Broker Representation Agreement

As of July 2024, all Realtors are required to have a written representation agreement with their buyers. These agreements can have slightly different language, but generally state the length of agreement and the terms of buyer-broker compensation.

Mortgage Preapproval or Proof of Funds

When submitting an offer, the buyer’s mortgage preapproval or proof of funds needs to be included in the offer so that the the seller can see how the buyer will be paying for the property.

Purchase Agreement

The purchase agreement is the main document in a real estate offer. In many other states this document is called a purchase “contract”, but in Indiana it is called a “Purchase Agreement.” There are a number of blanks to be filled in and checkboxes to be checked on this form that are included in the “Information Needed To Submit An Offer” section of the blog further below.

Sellers Property Disclosure

All sellers are required to fill out the “Sellers Property Disclosure.” This form has a long itemized list of all the components of a home, where the seller has to check the according column to state the condition of each component as “Note Defective”, “Defective” or “Not Applicable.” Any item marked as “Defective” the seller has to provide a written explanation of what is defective about each item.

Lead Based Paint Disclosure (for homes built before 1978)

Any home built before 1978 is required to have a “Lead Based Paint Disclosure” form. On this form the seller states if they know of an lead hazards in the home, and if they have any documentation of lead hazards in the home.

Wiring Fraud Advisory Notice

All brokerages include a Wiring Fraud Advisory Notice which essentailly states that wiring fraud is something that occurs often, and to use proper care when wiring funds.

Agency Policies

The Agency Policies disclosure is a short 2 page form that states the responsibilities I have to you working on your behalf representing you in you purchase of a home.

Affiliated Business Arrangement

The Affiliated Business Arranement form is a form that states that our real estate brokerage, eXp Realty, LLC, owns other companies in the real estate space, and by law this has to be disclosed.

Information Needed To Submit A Offer To Purchase Real Estate in Indiana

Items on the Purchase Agreement
- Offer Price
- Inspection
  - Do you want to have an inspection, or waive your right to an inspection? Note that if you waive your right to an inspection you still may have an inspection completed, but you just aren’t allowed to request the seller to complete repairs after you get the results of your inspection back.
- Settlement fee – to be paid by the buyer, the seller, or split evenly.
  - My guidance is to check the :split evenly” box, and this is about a $450 cost, and splitting this cost with the buyer is a show of goof faith.
- Closing Date