Citations Affected: IC 16-41-25-4 ; IC 24-4.6-2.
Synopsis: Residential septic systems. Requires that a residential septic
system that is located on property adjacent to a public freshwater lake
must be inspected for system failure every two years by the local health
department. Requires the Indiana real estate commission to provide in
its residential real estate disclosure form for the disclosure by the
owner of the known design of the septic system, if any, contained on
the owner's property. Requires the owner of a residential property
containing a septic system to have the system inspected for defects
before preparing a residential real estate sales disclosure form
concerning the property.
Effective: July 1, 2000.
January 11, 2000, read first time and referred to Committee on Environmental Affairs.
A BILL FOR AN ACT to amend the Indiana Code concerning
IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2000]: Sec. 4. (a) A residential septic system that is located on
property within one hundred (100) feet of a public freshwater lake
(as defined by
) must be inspected every two (2) years
to determine whether effluent discharged from the septic system:
(1) exceeds the absorptive capacity of the soil, resulting in ponding, seepage, or discharge to the ground surface or lake; or
(2) is causing contamination of a potable water supply, ground water, or surface water.
(b) Each local health department established within a county under IC 16-20-2-2 or IC 16-22-8-6 shall enforce this section in that county.
(c) If an inspection under subsection (a) results in a determination that a residential septic system exhibits effluent discharge, the owner of the property shall correct the septic system
failure. The local health officer shall notify the owner of the septic
system failure and give the owner a reasonable time to correct the
SECTION 2. IC 24-4.6-2-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 7. The Indiana real estate commission established by IC 25-34.1-2-1 shall adopt a specific disclosure form that contains the following:
(1) Disclosure by the owner of the known condition of the following areas:
(A) The foundation.
(B) The mechanical systems.
(C) The roof.
(D) The structure.
(E) The water and sewer systems.
(F) Other areas that the Indiana real estate commission determines are appropriate.
(2) A notice to the prospective buyer that contains substantially the following language:
"The prospective buyer and the owner may wish to obtain professional advice or inspections of the property and provide for appropriate provisions in a contract between them concerning any advice, inspections, defects, or warranties obtained on the property.".
(3) A notice to the prospective buyer that contains substantially the following language:
"The representations in this form are the representations of the owner and are not the representations of the agent, if any. This information is for disclosure only and is not intended to be a part of any contract between the buyer and owner.".
(4) A disclosure by the owner that an airport is located within a geographical distance from the property as determined by the Indiana real estate commission. The commission may consider the differences between an airport serving commercial airlines and an airport that does not serve commercial airlines in determining the distance to be disclosed.
(5) A disclosure by the owner of the known design of the septic system, if any, contained on the property.
SECTION 3. IC 24-4.6-2-14 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 14. If an owner's residential real estate contains a septic system, the owner must have the septic system inspected for defects before completing a disclosure form concerning the real
estate under section 10 of this chapter.