Key Takeaways

  • Indiana Department of Environmental Management (IDEM) regulates environmental matters
  • Sellers must disclose known environmental hazards on the property disclosure form
  • Lead-based paint disclosure is required by federal law for homes built before 1978
  • Radon is a known issue in Indiana; testing is recommended
  • Underground storage tanks require proper registration and may require remediation
Last updated: January 2026

Environmental Issues in Indiana Real Estate

Environmental concerns can significantly affect property value and transaction requirements.

Environmental Disclosure

Property Disclosure Form

Indiana's Seller's Disclosure Form includes environmental questions:

CategoryExamples
Known contaminationSoil, groundwater
Underground tanksCurrent or previous
Hazardous materialsAsbestos, lead paint
RadonTesting results
FloodingHistory of flooding

Agent Disclosure Duties

Indiana agents must disclose known environmental hazards:

  • Contamination affecting property
  • Environmental violations
  • Facts that could not be discovered by inspection
  • Material facts affecting value

Indiana Department of Environmental Management (IDEM)

IDEM regulates environmental matters in Indiana:

AreaRegulation
Air QualityEmissions permits
Water QualityDischarge permits
Hazardous WasteStorage and disposal
Solid WasteLandfills
Underground Storage TanksRegistration and removal

Underground Storage Tanks (USTs)

Indiana Requirements

RequirementDetail
RegistrationUSTs must be registered
DisclosureShould be disclosed on property form
RemovalMust follow proper procedures
ContaminationMay require remediation

Leaking UST Program

If a tank has leaked:

  • Owner may be liable for cleanup
  • IDEM has corrective action program
  • May significantly affect property value

Lead-Based Paint

Federal Requirements (Pre-1978 Homes)

For homes built before 1978:

RequirementDetail
EPA PamphletMust provide "Protect Your Family"
Known hazardsMust disclose
RecordsProvide any available reports
10-day inspectionRight to test (can be waived)
Disclosure formMust be signed

Indiana Lead Requirements

Indiana follows federal requirements and:

RequirementApplication
Rental propertiesLead disclosure required
Child-occupied facilitiesSpecific rules
Renovation workCertified contractors
Testing/abatementLicensed professionals

Radon

Indiana Law

StatusDetail
Known issueParts of Indiana have elevated levels
Mandatory disclosureNot required by state
RecommendedTesting encouraged
MitigationAvailable if high levels found

Note: While Indiana doesn't mandate radon disclosure, it's good practice to recommend testing. Indiana has areas with known elevated radon levels.

Flood Zones

Flood Zone Considerations

RequirementStatus
Indiana state lawNo mandatory disclosure
Federal lendersMay require for loans
InsuranceRequired in Special Flood Hazard Areas
NFIPNational Flood Insurance Program

Impact on Transactions

  • May affect property value
  • Insurance costs
  • Financing availability
  • Development restrictions

Wetlands Protection

Indiana wetlands are protected under:

  • Federal Clean Water Act
  • IDEM regulations
  • Army Corps of Engineers permits

Impact on Development

IssueConsequence
Protected wetlandsDevelopment restricted
Permits requiredFor any disturbance
MitigationMay be required
Buffer zonesMay apply

Indiana Brownfield Program

Encourages redevelopment of contaminated sites:

BenefitDescription
Liability protectionFor prospective purchasers
Tax incentivesAvailable programs
Grant programsCleanup assistance
Technical assistanceIDEM guidance
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Environmental Issues in Indiana Real Estate
Test Your Knowledge

Is radon disclosure required by Indiana law?

A
B
C
D
Test Your Knowledge

What federal law requires lead-based paint disclosure for homes built before 1978?

A
B
C
D
Test Your Knowledge

Which agency regulates environmental matters including underground storage tanks in Indiana?

A
B
C
D
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