Bulletin: IN2020005

Dear Associates:

The Indiana Department of Local Government Finance (“DLGF”) has revised the Indiana Sales Disclosure Forms (State Form 46021 (R12/1-21) and Form 55632 (R /1-21), effect on January 1, 2021. These forms are required to be executed by the buyer / seller and filed with each deed and transfer of real property in Indiana. The new forms go into effect on January 1, 2021; however, the DLGF has not issued instructions as of the date of this bulletin.

Please be aware that we have no information as to the acceptance by each County Auditor / Assessor offices of the current / old Sales Disclosure Form (R11/12-11) after January 1, 2021. Therefore, you will need to contact the County Office if you have an “old” form for your transaction.

Further, as a best practice suggestion and to avoid recording delays, we suggest that both the current and new Sales Disclosure Forms be executed if your transaction will close and documents will be executed on or before December 31, 2020, and the documents will be recorded after January 1, 2021.

Sample forms are attached at the end of this bulletin or can be located at the DLGF website at: https://www.in.gov/dlgf/8294.htm. 

Information provided by the DLGF:

On January 1, 2021, there will be a new Sales Disclosure Form that will be implemented with all deeds and transfers. The Indiana Department of Local Government Finance (“DLGF”) has been working on new instructions, webinars, demos, and FAQs so everyone that uses the form knows what is required and how to use the form.

The DLGF hosted a number of webinars, and materials are available at:

Individuals to learn about the new form: https://www.in.gov/dlgf/9697.htm.

Sales Disclosure Submission Process: https://www.in.gov/dlgf/9697.htm. 

On December 7 or 8 - The DLGF is expected to release the new instructions, a demo on how to use the new form, and FAQs for users of the form to review and study ahead of the January 1, 2021, implementation date. All agents are encouraged to review these materials and talk with their local auditor and assessor to make sure they have also taken the necessary education steps, so we are all ready on January 1, 2021.

January 2, 2021 - The new Sales Disclosure Form should be used. There may be a short grace period to use the old form; however, it is advisable to switch to the new form in case a county office decides not to accept the old form.

Key items:

Italicized v. Non-italicized fields: If an item is italicized, it is not required by the DLGF. This does not mean that a local county will not make the determination they must have the information despite instructions from the DLGF. You will want to confirm with your local county which information is required.

Color-coded: If you use an online system to fill out the form, items in yellow will be required. In the form, you will make a selection regarding whether the property is residential, commercial, or agricultural. Once the selection is made, there will be green or pink portions highlighted that must be filled out. The intention is to make it known to the preparer what must be filled out based on the type of property at issue.

Parties Do Not Know Response: If the parties do not know the answer to a question, the DLGF is instructing to answer "No," provide documentation in a blank field the parties "do not know” and proceed forward with filing. The parties to the form may do an addendum later to fix the form.

Instructions: The DLGF has rewritten the instructions for the form and is hopeful they are clearer. The instructions are longer but should provide preparers and users of the form clear instructions on how to fill it out and use the form.

What happens if there is a problem on January 1, 2021?

Contact the DLGF with the name of the county that is having difficulty with accepting the form. The DLGF has a point person who will be fielding questions and will be aiding the counties as they also use the new form.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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