HB1060

Summary

Environmental scrutiny before property transfer. Requires a qualified inspector to inspect a residential onsite sewage system (residential system) before a sale of a dwelling connected to the residential system. Requires that the sales disclosure form must disclose if the inspection indicated that the residential system is failing. Provides that a failure of the owner of the dwelling to satisfy the notice requirement makes transfer of ownership of the dwelling voidable at the election of the buyer even after the closing. Requires a qualified inspector to inspect a commercial onsite sewage system (commercial system) before a transfer of the nondwelling structure connected to the commercial system. Requires that the results of the inspection must be disclosed to the local health department, the county recorder, and the transferee. Requires that the transferee must present to the county recorder an affidavit stating that the cause of the commercial system failure has been eliminated or will be eliminated before the transferee uses the nondwelling structure for the transferee's intended purpose. Provides that the county recorder may not record a deed transferring the nondwelling structure unless certain requirements are satisfied. Provides that the failure of the nondwelling structure owner to provide the required documents is a complete defense to an action for breach of contract to purchase the nondwelling structure and is a breach of a legal duty for which the transferee may bring civil action for compensatory damages. Requires water from a water well to be tested by a qualified tester before transferring a lot containing both a water well and a dwelling connected to a residential onsite sewage system. Requires that the test results must be disclosed to the local health department, the county recorder, and the transferee. Provides that the county recorder may not record a deed transferring the lot unless certain requirements are satisfied. Provides that the failure of the lot owner to provide the required documents is a complete defense to an action for breach of contract to purchase the lot and is a breach of a legal duty for which the transferee may bring civil action for compensatory damages. Makes certain exceptions. Requires the Indiana department of health to adopt rules to: (1) establish requirements and standards for inspections of residential onsite sewage systems and commercial onsite sewage systems and testing of water wells; and (2) establish qualifications for inspectors of residential onsite sewage systems and commercial onsite sewage systems and testers of well water.

Authors

Sponsors

Fiscal Outlook

History