Indiana · owner financing
Indiana owner financing, explained.
A plain-English guide to owner financing (also called seller financing) in Indiana — statute, recording, default remedies, interest caps, and where deals actually happen.
Ind. Code § 32-21-1 et seq. (recording); common law via Skendzel v. Marshall (foreclosure required)
Recording with county Recorder is permitted under Ind. Code § 32-21-4-1 but not statutorily mandated; without recording, contract is void as to subsequent bona fide purchasers.
Foreclosure (predominantly). Skendzel v. Marshall, 261 Ind. 226 (1973), held that buyers with substantial equity in a land contract are entitled to foreclosure protections similar to mortgagors—including right of redemption—rather than forfeiture. Forfeiture still possible early in contract or for minimal-equity buyers.
Is owner financing legal in Indiana?
Indiana recognizes 'land contracts' / 'conditional sales contracts' as a common form of seller financing. Largely governed by common law shaped by the landmark Skendzel decision.
How do you record a owner financing agreement in Indiana?
Recording with county Recorder is permitted under Ind. Code § 32-21-4-1 but not statutorily mandated; without recording, contract is void as to subsequent bona fide purchasers.
What happens if the buyer defaults?
Foreclosure (predominantly). Skendzel v. Marshall, 261 Ind. 226 (1973), held that buyers with substantial equity in a land contract are entitled to foreclosure protections similar to mortgagors—including right of redemption—rather than forfeiture. Forfeiture still possible early in contract or for minimal-equity buyers.
What is the maximum interest rate?
8% if no rate stated; higher rates allowed by written agreement under Ind. Code § 24-4.5-3-201 (Uniform Consumer Credit Code) for consumer loans, generally up to 21% on smaller balances.
What disclosures are required?
Indiana residential real estate disclosure (Ind. Code § 32-21-5); lead-based paint (federal); no specific CFD disclosure statute, though general consumer-credit disclosures may apply.
Who's protected — buyer vs. seller
Buyer protections
Skendzel foreclosure protection when substantial equity exists; right of redemption in foreclosure (3 months under Ind. Code § 32-29-7); equitable interest recognized.
Seller protections
Forfeiture available in early-stage defaults or where buyer's equity is minimal; can pursue ejectment; ability to retain payments as reasonable rent.
Where in the state do these deals happen?
Common in rural southern Indiana, Indianapolis inner-ring residential, and farmland transfers; manufactured home / land combinations.
Indiana cities
Per-city market notes for owner financing buyers and sellers.
Notable case law
Skendzel v. Marshall, 261 Ind. 226, 301 N.E.2d 641 (1973); Looney v. Farmers Home Admin., 794 F.2d 310 (7th Cir. 1986).
Looking at a Indiana deal?
Send the parcel and the terms — we'll walk through whether owner financing fits, how to record it, and what the cure period looks like if things go sideways.
Talk to WyattEducational content only. Statute citations are public-record research, not legal advice. Indiana contracts and remedies are fact-specific — consult a licensed Indiana real-estate attorney before signing anything.