Indiana CRE deals have no state transfer tax, but county conveyance fees, flood plain exposure, and agricultural zoning restrictions catch buyers off guard. This checklist covers every check before you close in 2026.
Indiana is a steady commercial property market anchored by Indianapolis, Fort Wayne, and a dense logistics corridor along I-65 and I-70. Deals here don't move as fast as coastal markets, but that slower pace doesn't mean less risk.
The state abolished its real estate transfer tax in 2009. You won't pay a state tax on the deed, but county auditor conveyance fees still apply - $0.50 per $500 of consideration, paid before recording.
Environmental exposure varies sharply by location. The Gary and Hammond corridor in northwest Indiana carries legacy industrial contamination from steel manufacturing. Southern Indiana properties near rivers face flood plain issues that require separate evaluation.
Before diligence opens, load all property files into your Ellty data room. Each advisor gets a scoped link on day one - no chasing documents mid-process.
Where Indiana property deals actually go wrong
Not every check carries the same weight. The table below sorts risks by impact on deal execution.
| Area | Documents to pull | Indiana red flag | Matters most for | Tier | |
|---|---|---|---|---|---|
| Title and ownership | Title and ownership | Warranty deed, title commitment, 40-year chain-of-title, County Recorder search | Indiana mechanic's lien rights survive closing without a specific written waiver | All buyers | Dealbreaker |
| Encumbrances and easements | Encumbrances and easements | Recorded easements, judgment liens, drainage board orders, IRS tax liens | Indiana county drainage board orders can attach and restrict commercial use | All buyers | Dealbreaker |
| Zoning and land use | Zoning and land use | County or municipal zoning certificate, variance history, special exception records | Agricultural zoning on fringe parcels blocks commercial use without rezoning | Development, repositioning | Dealbreaker |
| Environmental | Environmental | Phase I ESA, IDEM database search, UST records, flood plain determination | Northwest Indiana steel corridor carries significant legacy contamination risk | Industrial, mixed-use, vacant land | Dealbreaker |
| Leases and tenancies | Leases and tenancies | All leases, amendments, rent roll, estoppels, sublease consents | Indiana warehouse leases often include triple-net terms that shift hidden costs to buyer | Industrial, retail, logistics | Price-adjuster |
| Building and physical condition | Building and physical condition | Property Condition Assessment, building permit history, certificate of occupancy | Older Indianapolis industrial buildings often have unpermitted mezzanine additions | All asset types | Price-adjuster |
| Service charge and costs | Service charge and costs | 3y operating statements, property tax bills, CAM reconciliations, TIF records | Indiana TIF districts freeze assessed value; future tax increases fall outside the TIF | Income-producing assets | Price-adjuster |
| Conveyance fee | Conveyance fee | County auditor conveyance fee calculation; Sales Disclosure Form filing | Indiana requires a Sales Disclosure Form before the county auditor endorses the deed | All deals | Price-adjuster |
| Insurance and valuation | Insurance and valuation | Current policies, loss runs, FEMA flood zone certificate, property appraisal | White River and Wabash River floodplains affect a large share of Indiana parcels | Riverside and all asset types | Standard check |
| Utilities and access | Utilities and access | Utility connection records, INDOT access permits, right-of-way records | INDOT controls access to state roads; new curb cuts require separate permit approval | Retail, logistics, industrial | Standard check |
| Seller KYC and AML | Seller KYC and AML | Entity docs, deed match, Indiana Secretary of State search, bankruptcy search | Indiana LLC must be in good standing before the county auditor will endorse the deed | All deals | Standard check |
Running due diligence on an Indiana property?
Set up your data room before diligence starts.
Start free 14-day trialThe full Indiana property due diligence checklist
Title and ownership
- Pull the warranty deed and confirm the legal description matches the survey
- Order a 40-year chain-of-title search from an Indiana-licensed title agent
- Search the County Recorder for all recorded liens, judgments, and encumbrances
- Confirm no open mechanic's lien claims; Indiana allows 90 days to file after last work
- Check for any notices of commencement filed on recent construction at the parcel
- Verify the parcel ID matches all closing and survey documents before proceeding
Encumbrances and easements
- Pull all recorded easements, rights of way, and deed restrictions from the county recorder
- Search for county drainage board orders; these restrict use and can attach to land
- Confirm no IRS tax liens or federal judgment liens against the seller entity or principals
- Check for any pending municipal assessments that increase future operating costs
- Run a UCC fixture filing search against the seller for equipment attached to the property
Zoning and land use
- Confirm current zoning from the county or municipal planning department in writing
- For fringe suburban parcels: check whether agricultural zoning applies before proceeding
- Pull the full variance and special exception history from the local plan commission
- Verify all certificates of occupancy for buildings and improvements are current
- Confirm no open code violations or stop-work orders at the building department
- For Marion County: confirm zoning at both city and county levels if outside Indianapolis
Environmental
- Commission a Phase I ESA per ASTM E1527-21; northwest Indiana warrants extra scrutiny
- Search the IDEM public database for recorded releases, cleanups, and enforcement actions
- Run a UST search for all former gas station, dry cleaning, and industrial parcels
- Check FEMA flood plain maps for all river-adjacent or low-elevation Indiana parcels
- For Gary and Hammond parcels: budget Phase II ESA from the start; legacy risk is high
- Budget Phase II at $8,000-$25,000 if recognized environmental conditions surface
Leases and tenancies
- Collect all leases, amendments, and sublease consents into Ellty before diligence opens
- Abstract every triple-net clause; Indiana warehouse and logistics leases use NNN broadly
- Cross-reference the rent roll against 3 months of actual bank receipts from the seller
- Confirm estoppel certificates are deliverable before the scheduled closing date
- Identify any month-to-month occupancies or undocumented tenants on the property
- Check for tenant purchase options or rights of first refusal embedded in lease terms
Building and physical condition
- Commission a Property Condition Assessment; Indiana's freeze-thaw cycle stresses envelopes
- Pull the full building permit history from the local building department
- Check for unpermitted mezzanine or interior additions common in older industrial stock
- Confirm ADA compliance documentation for all commercial spaces on the property
- Inspect roof and HVAC; Indiana's climate range accelerates wear on older systems
- Verify sprinkler systems meet current fire code for the intended use class
Service charge and operating costs
- Pull 3 years of operating statements and reconcile against actual property tax bills
- Check whether the parcel sits in a TIF district; note when the TIF allocation period ends
- Audit CAM pass-throughs against lease terms for all multi-tenant assets
- Check for pending county or city infrastructure assessments affecting future costs
Conveyance fee and closing costs
- Calculate Indiana county conveyance fee at $0.50 per $500 of consideration
- Complete the Sales Disclosure Form; county auditor endorsement is required before recording
- Confirm the deed is presented to the county auditor before the County Recorder will accept it
- On a $3M Indiana deal, the conveyance fee runs roughly $3,000 - confirm allocation in contract
- Note: Indiana has no state-level real estate transfer tax since 2009
Insurance and valuation
- Pull current insurance policies and a 3-year loss run history from the seller
- Check FEMA flood zone status on White River, Wabash River, and other floodplain parcels
- Verify the parcel is not in a FIRM remapping zone that could affect future premiums
- Order an independent appraisal scoped to the intended use and lender requirements
Utilities and access
- Verify all utility connections are active and legally transferable at closing
- Check INDOT records for any state road access permit requirements on the parcel
- Confirm legal road access via recorded easement or dedicated public right of way
- Verify stormwater management compliance with county drainage board permits
Seller KYC and AML
- Confirm seller identity matches the County Recorder deed record exactly
- For LLC or corporate sellers: confirm good standing with the Indiana Secretary of State
- Run bankruptcy, federal tax lien, and judgment lien searches before committing to close
- Confirm entity authority to sell; Indiana LLCs require manager or member authorization
Load all documents into Ellty at the start of diligence. Each advisor gets a scoped link - no open-access folders, no version confusion when files update.
How property due diligence in Indiana works
Step 1 - Title search
Start the title search immediately after contract execution. Indiana uses a race-notice recording system; first to record wins priority.
Commission a 40-year chain-of-title at the County Recorder. Indiana mechanic's lien exposure makes a full title search non-negotiable.
Step 2 - Survey and inspection
Order an ALTA/NSPS survey alongside the title search. Confirm the parcel ID, legal description, and all easement locations match the deed exactly.
Commission the Property Condition Assessment in parallel. Indiana's freeze-thaw climate means building envelope and roof condition need close attention.
Step 3 - Leases and income review
Pull all leases and abstract NNN pass-through clauses first. Indiana logistics and warehouse leases shift maintenance and tax costs to tenants; verify actual collections match the stated NOI.
Check the operational due diligence guide for how to structure a parallel-track review. Adapt the standard request list for Indiana TIF district and conveyance fee items.
Step 4 - Environmental review
Run the Phase I ESA and IDEM database search in parallel. Former steel plants, rail yards, and auto-related uses are common on Indiana commercial corridors and carry enforcement history.
See how to organize a real estate data room for how to structure environmental files for lender review.
Step 5 - Closing and registration
Indiana requires the Sales Disclosure Form and county auditor endorsement before the deed is presented to the County Recorder. The auditor step adds a day to closings that out-of-state buyers don't anticipate.
The county conveyance fee is due at the auditor step. Confirm allocation in the purchase agreement before the closing date is locked.
How to set up your Indiana data room in Ellty.
Load Indiana property files before advisors arrive. Give each one a scoped link on day one.
- 1.Create a data room and upload the property filesDrop title docs, leases, IDEM search results, and property tax records into Ellty. Each folder maps to a diligence area.
- 2.Give each advisor a scoped, secure linkYour title attorney sees title only. The ESA consultant sees environmental files only. Ellty enforces the scope.
- 3.Track who reviews which documentsSee which files each advisor opened and when. Spot delays before they slow the close.
What makes due diligence in Indiana different
Indiana's no-transfer-tax status draws out-of-state buyers who assume closing costs are minimal. The county conveyance fee and Sales Disclosure Form step still add time and cost that advisors unfamiliar with the state miss.
TIF districts are a second trap. Indianapolis and many Indiana cities use tax increment financing broadly. Buyers who don't check TIF district boundaries can model future tax exposure incorrectly.
Agricultural zoning on fringe Indianapolis parcels catches repositioning buyers. A parcel that looks commercial on satellite imagery may require a full rezoning before any development can proceed.
See types of due diligence explained for how to structure parallel tracks so environmental and title work run together rather than sequentially.
Indiana requires that before a deed is recorded, it must be presented to the county auditor for endorsement. The county auditor will verify the conveyance fee has been paid and the Sales Disclosure Form filed.
Timeline and cost in Indiana
Week 1-2 covers kickoff: County Recorder title search, ALTA survey order, Phase I ESA engagement, and IDEM database search. Budget $3,500-$8,000 for this phase.
Load all files into Ellty on day one and give each advisor a trackable scoped link. That removes weeks of email follow-up from a standard Indiana diligence process.
Weeks 2-4 cover deep review: Phase I ESA delivery, Property Condition Assessment, lease abstraction, TIF district check, and FEMA flood zone confirmation.
Cost for weeks 2-4 runs $4,000-$15,000 depending on Phase I scope and asset complexity. Phase II ESA adds $8,000-$25,000 if RECs surface; budget it early and release if clean.
Weeks 4-6 handle resolution: Phase II if needed, title exception negotiations, Sales Disclosure Form preparation, and closing at the County Recorder.
Indiana county conveyance fee runs $0.50 per $500; on a $2M deal that's $2,000. Buy-side legal fees typically run $2,500-$6,000 for a standard Indiana commercial close. See how long due diligence takes to model realistic timelines before locking your closing date.
Indiana deal documents in one secure room
Hold title, leases, and IDEM search results in one tracked Ellty data room.
Start free 14-day trialCommon questions about property due diligence in Indiana
- No. Indiana abolished its real estate transfer tax in 2009. A county conveyance fee of $0.50 per $500 still applies; the county auditor collects it before endorsing the deed.
- Indiana requires a Sales Disclosure Form filed with the county auditor before a deed can be recorded. Without it the County Recorder won't accept the deed for filing.
- Northwest Indiana's steel and manufacturing history creates legacy contamination risk. Search the IDEM public database and commission a Phase I ESA on every commercial deal.
- TIF districts freeze the assessed value base for tax allocation. Future tax increases not reflected in the seller's current bills will hit buyers outside the TIF period.
- Standard Indiana deals run 30-45 days. Phase II ESA, rezoning checks, or complex title issues on former industrial parcels push deals to 60 days or more.
- Before a deed is recorded, the county auditor must endorse it to confirm the conveyance fee was paid and the Sales Disclosure Form filed. Plan for one extra day.
