RPTL

• Indiana Code 13-25-3, Responsible Property Transfer Law, applies to all transfers of land within the state of Indiana. Generally, the land holder is required to fill out and submit a disclosure form to all of the parties involved in the transfer at least 30 days before the transfer is completed. The law foregoes the 30 day requirement if the parties wave that requirement in writing or if a party to the transfer was identified less than 30 days from the date the transaction is to be completed. Even if the 30 day requirement is waved, however, the disclosure must be made before the transaction is finalized.
  
  

What Must be Disclosed

• The disclosure form is intended to address any sources of environmental pollution that have or may have a negative impact on the property. This includes information about the lands use, such as the presence of landfills, storage tanks, septic tanks and waste treatment operations on the property. It also includes the identification of any environmental permits such as permits to store or discharge waste and wastewater. Finally, disclosure requires the identification of any single incident that may have harmed the property and any action taken by state and federal environmental agencies against the property.
  
  

Disclosure Form

• The disclosure form can be obtained from Indiana Department of Environmental Management website (see Resources). The form first identifies the location of the property, its exact size and any improvements that have been made to the property such as buildings or farmland. The terms of the transaction are stated and all parties to the transaction are then identified. The property owner can then identify any of the issues discussed above. Any answers that require clarification may and should be clarified to avoid the potential of future conflicts. Finally, the document is signed by the transferor and the transferee upon its receipt.
  
  

Due Diligence and Federal Law

• It is important for the individual receiving the property to understand that the RPTL alone does not satisfy due diligence requirements of federal environmental laws. Under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) 42 U.S.C. 9601, landowners are liable for fines and expenses accrued during the cleanup of environmental pollution on private property. Purchasers that suspect the land in question may be contaminated with pollutants or had been the site of environmentally harmful activities are encouraged to consult with a qualified attorney before purchasing the land. In most cases, soil and water quality studies will be required in addition to the disclosure.