Indiana due diligence
Indiana Condo Due Diligence Checklist
Indiana's condo/HOA sector is lightly regulated. Indiana has two separate statutory regimes — the older Indiana Condominium Act (IC 32-25) for condominiums and the Homeowners Associations Act (IC 32-25.5) for planned-community HOAs — but neither imposes the comprehensive, prescriptive consumer-protection framework found in Uniform Common Interest Ownership Act (UCIOA) states.
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The Indiana document checklist
21 documents to review — 4 required by Indiana statute. Every item explains what to verify.
Request immediately
Statute-backed documents the association must provide or make available.
- Sales Disclosure Form — IC 32-21-5-10 (delivered before offer acceptance; 2-business-day rescission if late/amended defect disclosure).
- HOA governing documents + assessment statement + management contact — IC 32-21-5-8.5 (mandatory HOA property; ≥10 days before closing).
- Recorded Declaration / Bylaws — Condo declaration & bylaws (IC 32-25-7/-8); HOA covenants.
- Replacement reserve fund evidence (condos) — Budget line/balance per IC 32-25-4-4.
Confirm you received these
Commonly provided in the resale package — verify none are missing.
- Current annual budget — HOA budget process under IC 32-25.5-3-3.
- Year-end financial statements / financial records — Inspectable under IC 32-25.5-3-3 (now fee-free to produce).
- Reserve study — Not mandated for HOAs (and not required even though condos must keep a reserve fund); request if it exists.
- Master insurance policy declarations page — Carrier, limits, deductibles (esp. wind/hail %), flood status (IC 32-25-8-9).
- Insurance claims history — Hail/wind/storm losses.
- Board & member meeting minutes (1–2 years) — Inspectable under IC 32-25.5-3-3.
- Payoff / resale letter & account statement — Fee capped at $50 to owner; balance statement free (HB 1115, 2026).
- Schedule of Fines / enforcement policy — Required for fining post-HB 1115.
- Schedule of Optional Services — Required disclosure of optional fees post-HB 1115.
- Special-assessment & loan history — Minutes; loan votes (paper-ballot, 30-day notice under IC 32-25.5-3-5).
- No statutory binding resale certificate — Indiana has no UCIOA-style estoppel certificate; rely on contract contingencies and the payoff/account statement.
Ask for these yourself
Not automatic. Request them proactively — a gap here is itself a signal.
- Engineering / roof / structural / parking-deck reports — No inspection mandate; request for older buildings.
- Delinquency report — Critical given no super-lien (collection-loss risk).
- Pending litigation summary — No statutory disclosure duty; check mycase.in.gov.
- FEMA/IDNR flood-zone determination — Especially Ohio River / Wabash / White River units.
- Owner-occupancy ratio — Financing and governance impact (university/investor markets).
- Developer-transition documents — If recently converted/turned over.
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Insurance Risk (7/10) — High and rising (hail/tornado/wind); percentage deductibles and reconstruction shortfalls.
Reserve / Special-Assessment Risk (7/10) — High; no HOA reserve mandate, weak condo funding standard, prominent special-assessment episodes.
Legal Complexity (6/10) — Two separate statutes plus nonprofit law and a fast-moving 2026 amendment package; no unified UCIOA framework to lean on, so document-specific.
Buyer Disclosure Risk (6/10) — Moderate-high; thin mandatory disclosure (no binding resale certificate) shifts burden to buyers.
Legal Framework
Indiana does not use a single unified common-interest-community statute. Three property statutes plus the Nonprofit Corporation Act do the work:
Reserve Studies and Reserve Funding
HOA with no reserve study/fund: Legal, but a strong red flag — surprise special assessments are common (see Fishers/Conner Creek example, Sec. 8/11/13).; Condo with a nominal "replacement reserve fund": Technically compliant with IC 32-25-4-4 even if grossly underfunded; buyers should ask for the balance and a percent-funded estimate.; Budget that adds little/nothing to reserves: Indicates assessment increases or special assessments are being deferred.; Aging components + low reserves: Largest single source of special-assessment risk in Indiana's older I…
Structural Inspections and Building Safety
Indiana has no statewide milestone/recertification or façade-inspection law for condominiums (no equivalent to Florida SB-4D, NYC Local Law 11/FISP, or California SB-326/SB-721). Building safety is handled through ordinary building/fire-code enforcement at permitting and on complaint:
Insurance Requirements and Insurance-Market Risk
Master casualty (property) policy — required. The association of co-owners must purchase a master casualty policy (fire + extended coverage) in an amount "consonant with the full replacement value" of the improvements comprising the common areas/facilities, payable as a common expense.; Master liability policy — required. Amount set by the bylaws/declaration or as revised by board decision.; Reconstruction provisions (IC 32-25-8-10, -11).
Resale Disclosures and Buyer Cancellation Rights
Indiana has no condominium "resale certificate / status letter" statute comparable to UCIOA/CCIOA states. Buyer-facing disclosure is assembled from two general statutes plus contract terms:
Assessments, Special Assessments, and Borrowing
`special_assessment_pending` – Approved/proposed special not in current budget.; `large_special_assessment_history` – Prior large specials (e.g., five-figure per-owner).; `hoa_loan_over_statutory_threshold` – HOA loan exceeding $5K/10% without member vote (IC 32-25.5-3-5 issue).; `loan_or_line_of_credit_active` – Association debt outstanding.
Indiana legal references
- Indiana Code Title 32, Article 25 — Condominiums (2024)
- Indiana Code § 32-25-6-3 — Unpaid Assessments; Lien (2024)
- Indiana Code § 32-25-4-3 — Common Areas; Undivided Interest
- Indiana Code § 32-25-8-10 / -8-11 — Insurance; Reconstruction; Insufficient Proceeds (2024)
- Indiana Code § 32-25.5-3-3 — Annual Budget; Records; Meetings; Search Fees (2025)
- Indiana Code § 32-25.5-3-5 — Borrowing Money; Member Approval (2024)
- Indiana Code § 32-25.5-3-10 — Member Meeting Proxies
- Indiana Code § 32-25.5-4-1 — Attorney General Actions (2024)
- Indiana Code Title 32, Article 25.5, Chapter 5 — Grievance Resolution (2024)
- Indiana Code § 32-21-5-10 — Disclosure Form; Presentation Before Offer (2025)
- Indiana Code Title 32, Article 21, Chapter 5 — Residential Real Estate Sales Disclosure (2025)
- Indiana Code Title 32, Article 30, Chapter 1 — Statute of Limitations Concerning Real Estate (2025)
- KSN Law — "2026 Legislative Updates for Indiana Community Associations" (Mar 2026)
- City of Evansville — Floodplain Management / Preliminary FEMA Flood Zones
Informational only. Not legal advice. Always confirm against the current statute and counsel.
Need help applying these Indiana statutes to your specific purchase? We can connect you with state-licensed counsel and specialists familiar with this exact regulatory environment.
Find a Indiana specialist →How CondoSignal reviews this
We read the reserve study, operating budget, and 24 months of meeting minutes together — indiana condo documents risk usually lives in the contradiction between documents, not in any single one of them. Every finding cites the source document, the page number, and the quoted text behind it.
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Risk Intelligence
Review the documents before your contingency ends
Most buyers get 7–14 days to review condo documents. Upload the packet — we read the reserve study, budget, minutes, and insurance summary and flag the risks, every finding linked to the exact page. Free.
Expert Matching
Need a real estate lawyer or mortgage specialist?
We can connect you with vetted real estate lawyers, mortgage brokers, and insurance brokers familiar with the specifics of condo and HOA transactions.
- HOA lawyer
- Realtor
- Mortgage broker