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Citations Affected: IC 24-4.6.

Synopsis: Septic system disclosure in residential sale. Requires the Indiana real estate commission to include on its sales disclosure form a provision concerning disclosure by an owner of residential real estate of the known condition of additions that may require improvements to the sewage disposal system.

Effective: July 1, 2002.

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Simpson, Gard
(HOUSE SPONSORS _ WEINZAPFEL, WOLKINS)

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    January 7, 2002, read first time and referred to Committee on Environmental Affairs.
    January 15, 2002, amended, reported favorably _ Do Pass.
    January 22, 2002, read second time, ordered engrossed.
    January 23, 2002, engrossed.
    January 24, 2002, read third time, passed. Yeas 48, nays 1.

    February 5, 2002, read first time and referred to Committee on Environmental Affairs.
    February 21, 2002, amended, reported _ Do Pass.

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PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2001 General Assembly.

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    A BILL FOR AN ACT to amend the Indiana Code concerning trade regulations; consumer sales and credit.

    SECTION 1. IC 24-4.6-2-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: 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) Additions that may require improvements to the sewage disposal system.
            (G) Other areas that the Indiana real estate commission determines are appropriate.
        (2) A notice to the prospective buyer that contains substantially the following language:

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        "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.