Real estate matters., the official text

First Regular Session of the 124th General Assembly (2025)

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between statutes enacted by the 2024 Regular Session of the General Assembly.

  HOUSE ENROLLED ACT No. 1347

   AN ACT to amend the Indiana Code concerning property.

   Be it enacted by the General Assembly of the State of Indiana:

   SECTION 1. IC 25-1-4-3, AS AMENDED BY P.L.168-2016,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) Notwithstanding any other law, a board that
is specifically authorized or mandated to require continuing education
as a condition to renew a registration, certification, or license must
require a practitioner to comply with the following renewal
requirements:

      (1) The practitioner shall provide the board with a sworn
      statement executed by the practitioner that the practitioner has
      fulfilled the continuing education requirements required by the
      board, after which the board will forward the sworn statement to
      the agency (established by IC 25-1-5-3).
      (2) The practitioner shall retain copies of certificates of
      completion for continuing education courses for three (3) years
      from the end of the licensing period for which the continuing
      education applied. The practitioner shall provide the board or
      agency (established by IC 25-1-5-3) with copies of the certificates
      of completion upon the board's or agency's request for a
      compliance audit.
   (b) This subsection does not apply to an individual licensed under
IC 25-34.1. Following every license renewal period, the agency with
consultation from the board may randomly audit for compliance more

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than one percent (1%) but less than ten percent (10%) of the
practitioners required to take continuing education courses.

   (c) This subsection applies only to individuals licensed under
IC 25-34.1. Following every license renewal period for a broker's
license issued under IC 25-34.1, the agency in consultation with the
board may randomly audit for compliance more than one percent (1%)
but less than ten percent (10%) of the practitioners required to take
continuing education courses. The agency in consultation with the
board shall perform:

      (1) annual; and
      (2) random;
audits for compliance of more than one percent (1%) but less than
ten percent (10%) of the practitioners licensed under IC 25-34.1
required to take continuing education courses.
   SECTION 2. IC 25-34.1-4-0.5, AS AMENDED BY P.L.116-2015,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 0.5. Except as provided in section 6 of this
chapter, to become a managing broker, an individual must:
      (1) hold an active broker's license for at least two (2) three (3)
      years; and
      (2) take and pass at least twenty-four (24) hours of broker
      management courses approved by the commission; and
      (3) pass a written examination prepared and administered by
      the commission or its duly appointed agent.
   SECTION 3. IC 25-34.1-4-5, AS AMENDED BY P.L.116-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. (a) Each broker company shall do the
following:
      (1) shall keep in Maintain one (1) or more trust accounts (interest
      or noninterest bearing).
      (2) Deposit into a trust account described in subdivision (1) all
      funds belonging to others that come into the possession of the
      broker company or of any broker whose license the broker
      company is holding. and
      (2) (3) shall Clearly identify any account containing those funds
      as that is a trust account.
The trust accounts shall contain all earnest money deposits, funds held
for closing escrows, sale proceeds not yet disbursed, and all other funds
belonging to others.
   (b) The broker company shall not use any trust account for the
deposit of any personal funds or other business funds and shall keep a
detailed record of the funds and any interest accrued in each trust

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account that identifies the amount of funds held for each beneficiary.
Any interest earned shall be held for the beneficiary.

   (c) Upon:
      (1) the death of the sole proprietor, in the case of a sole
      proprietorship broker company;
      (2) the termination of a broker company; or
      (3) the expiration, revocation, or suspension of a broker
      company's license;

the commission shall take custody of each trust account of the broker
company and may appoint a successor trustee to protect and distribute
the proceeds of that account.

   SECTION 4. IC 25-34.1-12-1, AS ADDED BY P.L.47-2024,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 1. Listing agreements, or any authority to sell or
lease, shall show a definite date of expiration and shall be in writing,
either on paper or in electronic format, with one (1) copy to go to the
owner within three (3) business days of the time of signing. The
original and all electronic files shall be retained in the office of the
listing broker.

   SECTION 5. IC 25-34.1-12-2, AS ADDED BY P.L.47-2024,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 2. Buyer agency agreements, or any authority to
represent a buyer or tenant, shall show a definite date of expiration
and shall be in writing, either on paper or in electronic format, with one
(1) copy to go to the buyer or tenant within three (3) business days of
the time of signing. The original and all electronic files shall be
retained in the office of the selling broker.

   SECTION 6. IC 32-21-5-7, AS AMENDED BY P.L.175-2023,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 7. (a) The Indiana real estate commission
established by IC 25-34.1-2-1 shall adopt a specific disclosure form
that contains the following:

      (1) Disclosure by the owner of the known condition of the
      following:

         (A) The foundation.
         (B) The mechanical systems.
         (C) The roof.
         (D) The structure.
         (E) The water and sewer systems.
         (F) Additions that may require improvements to the sewage
         disposal system.
         (G) Other areas that the Indiana real estate commission

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         determines are appropriate.
      (2) Disclosure by the owner of known:

         (A) contamination caused by the manufacture of a controlled
         substance (as defined by IC 35-48-1-9) on the property that
         has not been certified as decontaminated by a qualified
         inspector who is certified under IC 16-19-3.1; or
         (B) manufacture of methamphetamine or dumping of waste
         from the manufacture of methamphetamine in a residential
         structure on the property.
      (3) A notice to the prospective buyer that contains substantially
      the following language:
      "The prospective buyer and the owner may wish to obtain
      professional advice or inspections of the property and provide for
      appropriate provisions in a contract between them concerning any
      advice, inspections, defects, or warranties obtained on the
      property.".
      (4) A notice to the prospective buyer that contains substantially
      the following language:
      "The representations in this form are the representations of the
      owner and are not the representations of the agent, if any. This
      information is for disclosure only and is not intended to be a part
      of any contract between the buyer and owner.".
      (5) A disclosure by the owner that an airport is located within a
      geographical distance from the property as determined by the
      Indiana real estate commission. The commission may consider the
      differences between an airport serving commercial airlines and an
      airport that does not serve commercial airlines in determining the
      distance to be disclosed.
      (6) A disclosure by the owner that:
         (A) the property is located near a military installation, within
         a state area of interest (as defined in IC 36-7-30.2-6), and may
         be impacted to some degree by the effects of the installation's
         military operations; and
         (B) local laws may restrict use and development of the
         property to promote compatibility with military installation
         operations.
      (7) If the owner has personal knowledge of the fact that all or a
      portion of the real estate is located within a community's
      floodplain flood plain boundaries, as indicated in a Federal
      Emergency Management Agency Flood Insurance Rate Map, a
      disclosure by the owner of that fact.
      (8) A disclosure by the owner that the property is located

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      within a locally designated historic district under IC 36-7-11.
      (9) A disclosure by the owner of a conservation easement (as
      defined in IC 32-23-5-2).
   (b) Responsibility for the disclosure required under subsection
(a)(6) rests solely with the owner of the property and no liability for the
owner's failure to make the required disclosure shall accrue to any third
party. Failure of the owner to make the required disclosure under
subsection (a)(6) shall not:
      (1) invalidate the transfer of the property; or
      (2) create any encumbrance or lien upon any legal or equitable
      title to the property.

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Speaker of the House of Representatives

President of the Senate

President Pro Tempore

Governor of the State of Indiana

Date:                             Time:

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