Indiana Commercial Required Disclosures: Landlord Obligations

Since Indiana achieved statehood on December 11, 1816, commercial property landlords have operated under a framework that prioritizes contractual freedom, facing fewer mandatory disclosure requirements than their residential counterparts. However, several federal and state requirements still apply, and prudent disclosure practices remain essential for mitigating liability in the Superior or Circuit Courts.

Required Commercial Disclosures

Official Law Citation: The rules and regulations outlined on this page are strictly configured under Indiana Code Title 32 (Property), Title 25 (Professions), and federal mandates.

Lease Recording Disclosure

Under IC 32-31-2-1, a lease for a period longer than three (3) years must be recorded in the recorder's office of the county where the property is located within 45 days of execution. Per IC 32-31-2-2, if the lease is not recorded within this timeframe, it is void against any subsequent purchaser, lessee, or mortgagee who acquires the real estate in good faith and for valuable consideration. While this is a filing requirement, it serves as a public disclosure that protects the tenant's interest against subsequent purchasers.

Flood Zone Disclosure

Indiana Code Title 32 does not contain a general statutory mandate requiring commercial landlords to disclose flood plain status. However, IC 32-31-1-21 requires a landlord of a residential structure to provide written notice if any part of the structure is located in a flood plain; this mandate applies to commercial leases only if they contain a residential component. Prudent commercial landlords should proactively disclose flood risk as a matter of good practice and to avoid future liability claims based on common law fraud or misrepresentation. Such disclosure may include:

• Whether the property is in a FEMA Special Flood Hazard Area (SFHA)
• Any history of flood damage
• Whether flood insurance is required by the property's lender
• Cost implications for the tenant's business insurance

Environmental Disclosures

Known Contamination Commercial

The Indiana Responsible Property Transfer Law (IC 13-25-3) was repealed by P.L.113-2014. There is no longer a state statutory mandate requiring a specific environmental disclosure form for commercial property. Environmental liability and due diligence (Phase I ESAs) are governed by the federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 42 U.S.C. § 9601 et seq., and Indiana common law regarding the disclosure of latent defects and fraud. Disclosures typically include:

• Soil contamination from previous industrial use
• Groundwater contamination affecting the property
• Underground storage tanks (USTs) - current or removed
• Hazardous materials stored or previously stored on the premises
• Brownfield designations under Indiana's Voluntary Remediation Program

Asbestos For commercial

For buildings built before 1980, federal OSHA regulations (29 CFR § 1910.1001) require landlords to disclose:

• The presence of asbestos-containing materials (ACMs)
• Location and condition of ACMs
• Any asbestos management plans in place
• Abatement history - any removal or encapsulation performed

Lead-Based Paint

While the federal lead paint disclosure rule (42 U.S.C. § 4852d) primarily applies to residential properties, any commercial property containing residential components (mixed-use) must comply for those specific units.

ADA Compliance

While not a state-level "disclosure" statute, compliance with the Americans with Disabilities Act (ADA) is a shared responsibility. The Superior Court will look to the lease agreement to determine the allocation of responsibility for accessibility barrier removal.

• Commercial properties open to the public must be accessible
• Landlords and tenants share responsibility for ADA compliance
• The lease should clearly allocate ADA compliance obligations
• Tenants should be informed of any known accessibility deficiencies

Lease Allocation of ADA Responsibility

Zoning and Use Restrictions

Landlords should inform commercial tenants of zoning classifications to avoid "failure to disclose" claims in Circuit Court, even if the primary burden is on the tenant:

• Zoning classification and permitted uses
• Any conditional use permits or variances
• Historic preservation restrictions (if applicable)
• Parking requirements and limitations
• Signage restrictions from local ordinances or property covenants

Best Practices for Commercial Landlords

1. Disclose proactively - Transparency reduces future liability in Indiana's Superior Courts.
2. Obtain Phase I Environmental Site Assessments - Essential for due diligence under federal CERCLA standards and ASTM E1527.
3. Include disclosure provisions in the lease - Document what was disclosed and when.
4. Update disclosures - Notify tenants of any newly discovered conditions.
5. Maintain records - Keep copies of all disclosures and tenant acknowledgments.
6. Consult specialists - Environmental consultants, ADA specialists, and attorneys can identify disclosure obligations.

How Landager Helps

Landager continually tracks lease terms, required compliance items, and strict accounting records - making it easy to stay compliant with Indiana regulations.

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