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Indiana Rent-to-Own Lease Agreement

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Updated July 07, 2025

An Indiana rent-to-own lease agreement is a contract between a landlord and tenant that includes an option to buy the property. It's common for the majority of the negotiation to occur at lease signing with the tenant able to purchase during the term. After the tenant gives the notice to buy, the lease will be converted to a purchase agreement.

Indiana Laws

Requirement to Record: An option to purchase is not legally required to be recorded for it to be valid between the original parties. However, to protect against third party claims, it must be recorded.[1]

Expiration: Indiana law does not specifically address the expiration of constructive notice. Notice expires when the option expires.

Maximum Term: State law does not cap the term of a residential lease agreement.

No Duration: Without a duration, the option automatically expires at the end of the lease.

Signing Requirements: Must be in writing and signed by the seller.[2]

Required Disclosures (3)

1. Landlord’s Name and Address – The landlord must disclose the name and address of the person allowed on the property. The information should be used for notices sent to the landlord.[3]

2. Lead-Based Paint Disclosure & EPA Pamphlet – Under federal law, if the landlord’s property was built before 1978, it is mandatory that the disclosure form be attached, initialed, and signed by the tenant.[4]

3. Smoke Detector Disclosure – Must be signed by the tenant at the time of taking occupancy to acknowledge that a functional smoke detector is in the residence.[5]

Seller’s Disclosures (1)

1. Seller’s Residential Real Estate Sales Disclosure (Form 46234) (required) – This is an all-encompassing disclosure form that must be completed by the seller and presented to any potential buyer. It lets the buyer know of any defects, issues, or other information* that they should be made aware of.[6]

Sample

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