Understanding Indiana's contract requirements protects your interests. Here's what you need to know about offer, acceptance, and contingencies.
Indiana real estate transactions are governed by specific contract laws. Understanding these protections ensures smooth closings.
## Contract Requirements
### Essential Elements Indiana requires: - Written agreement (Statute of Frauds) - Legal description of property - Purchase price - Signatures of all parties - Consideration (earnest money)
### Standard Forms Most transactions use Indiana Association of Realtors forms: - Purchase Agreement - Various addenda - Disclosure forms
## Contingencies
### Inspection Contingency - Buyer's right to inspect - Negotiated response period - Seller remedy options - Walkaway rights
### Financing Contingency - Specified loan type and terms - Application deadline - Commitment deadline - Protection if loan denied
### Appraisal Contingency - Property must appraise at/above price - Options if low appraisal - Negotiation period
## Earnest Money
### Requirements - Deposit shows good faith - Amount negotiable (1-3% typical) - Held by broker or title company - Disbursement rules
### Disputes If transaction fails: - Contingency failure: Buyer refund - Buyer default: Seller may receive - Dispute: Escrow holds pending resolution
## Closing Process
### Indiana Specifics - Title companies typically close - Attorney optional but recommended - Recording same day typical - Funds via wire
### Closing Costs Expect: - Title insurance - Recording fees - Transfer taxes (where applicable) - Prorated taxes