law
Psychologically Affected Property (Indiana)
Under IC 32-21-6-3, Indiana property is psychologically affected if a death, a felony, criminal gang activity, a firearm discharge involving a law enforcement officer, or illegal manufacture or distribution of a controlled substance occurred or is suspected there. An owner or agent is not required to disclose this and is not liable for withholding it, but may not intentionally misrepresent a fact in response to a direct inquiry. Physical contamination from drug manufacturing must still be disclosed on the seller's form.
- Exam tip
- 'Silence is safe; lies are not.' A distractor requiring disclosure of deaths within three years is another state's rule.
- Example
- A buyer asks whether anything bad happened in the house, where the prior owner died naturally. The broker need not disclose it, but may not say nothing ever happened there.
Related terms & state variants
Sources
Source verification pending. Confirm current requirements with your state regulator.
Last verified: 2026-10-23