
Indiana law does not require a home seller or real estate agent to tell a buyer that someone died on the property, or that it's rumored to be haunted — the law explicitly protects them from liability for staying silent. But if a buyer or tenant asks directly, the seller or agent is not allowed to lie about it.
Indiana has a dedicated statute for this exact situation: Indiana Code Chapter 32-21-6, "Psychologically Affected Properties." It defines a "psychologically affected property" as one where an individual died, or that was the site of a felony, criminal-organization activity, an officer-involved shooting, or illegal manufacture/distribution of a controlled substance — including a "reasonable suspicion" of those facts. The statute doesn't use the word "haunted," but a death-on-property or alleged-crime history (the usual basis for a haunting rumor) falls squarely under it.
Under IC 32-21-6-5, an owner or agent is not required to disclose any of this to a buyer or renter, and cannot be held liable for choosing not to. There is no separate death-disclosure law in Indiana comparable to California's three-year rule — Indiana's general residential disclosure form (IC 32-21-5) covers structural and mechanical issues, not deaths or stigma.
The "ask rule" is written directly into the statute at IC 32-21-6-6: if a prospective buyer or tenant makes a direct inquiry, the owner or agent may not intentionally misrepresent the facts about a psychologically affected property. In plain terms, silence is legally protected, but an outright lie in response to a direct question is not.
No Indiana court case comparable to New York's famous Stambovsky v. Ackley "legally haunted house" ruling turned up in this search — Indiana's approach has stayed statutory rather than case-law-driven.
General information, not legal advice. Laws change and turn on details — for a real decision, talk to a licensed professional in Indiana.
No entries filed from Indiana yet. If something happened at an address you know, write it down — you may be the reason the next resident feels less alone at 3 AM.