IN
Indiana House Bill HB1347

Indiana 2025 Regular Session

Indiana House Bill HB1347 Compare Versions

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1+*EH1347.1*
2+March 14, 2025
3+ENGROSSED
4+HOUSE BILL No. 1347
5+_____
6+DIGEST OF HB 1347 (Updated March 12, 2025 12:08 pm - DI 154)
7+Citations Affected: IC 25-1; IC 25-34.1; IC 32-21.
8+Synopsis: Real estate matters. Requires a broker company to deposit
9+funds belonging to others into a trust account that the broker company
10+maintains. Requires that residential real estate sales disclosure forms
11+include disclosures by an owner that a property is located within a
12+locally designated historic district. Requires that residential real estate
13+sales disclosure forms include disclosures by an owner of any
14+conservation easement. Requires the Indiana professional licensing
15+agency in consultation with the Indiana real estate commission to
16+perform annual and random audits for compliance of more than one
17+percent (1%) but less than ten percent (10%) of the practitioners who
18+hold a broker's license required to take continuing education courses.
19+Provides that to become a managing broker, an individual, among other
20+things, must: (1) hold an active broker's license for at least three years;
21+and (2) pass a written examination. Amends provisions relating to real
22+estate agreements. Makes a technical correction.
23+Effective: July 1, 2025.
24+Clere, O'Brien, Dant Chesser,
25+Andrade
26+(SENATE SPONSORS — WALKER K, GOODE,
27+RANDOLPH LONNIE M)
28+January 13, 2025, read first time and referred to Committee on Financial Institutions.
29+January 21, 2025, amended, reported — Do Pass.
30+January 27, 2025, read second time, ordered engrossed.
31+January 28, 2025, engrossed. Read third time, passed. Yeas 91, nays 1.
32+SENATE ACTION
33+February 18, 2025, read first time and referred to Committee on Insurance and Financial
34+Institutions.
35+March 13, 2025, amended, reported favorably — Do Pass.
36+EH 1347—LS 7673/DI 151 March 14, 2025
137 First Regular Session of the 124th General Assembly (2025)
238 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
339 Constitution) is being amended, the text of the existing provision will appear in this style type,
440 additions will appear in this style type, and deletions will appear in this style type.
541 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
642 provision adopted), the text of the new provision will appear in this style type. Also, the
743 word NEW will appear in that style type in the introductory clause of each SECTION that adds
844 a new provision to the Indiana Code or the Indiana Constitution.
945 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
1046 between statutes enacted by the 2024 Regular Session of the General Assembly.
11-HOUSE ENROLLED ACT No. 1347
12-AN ACT to amend the Indiana Code concerning property.
47+ENGROSSED
48+HOUSE BILL No. 1347
49+A BILL FOR AN ACT to amend the Indiana Code concerning
50+property.
1351 Be it enacted by the General Assembly of the State of Indiana:
14-SECTION 1. IC 25-1-4-3, AS AMENDED BY P.L.168-2016,
52+1 SECTION 1. IC 25-1-4-3, AS AMENDED BY P.L.168-2016,
53+2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
54+3 JULY 1, 2025]: Sec. 3. (a) Notwithstanding any other law, a board that
55+4 is specifically authorized or mandated to require continuing education
56+5 as a condition to renew a registration, certification, or license must
57+6 require a practitioner to comply with the following renewal
58+7 requirements:
59+8 (1) The practitioner shall provide the board with a sworn
60+9 statement executed by the practitioner that the practitioner has
61+10 fulfilled the continuing education requirements required by the
62+11 board, after which the board will forward the sworn statement to
63+12 the agency (established by IC 25-1-5-3).
64+13 (2) The practitioner shall retain copies of certificates of
65+14 completion for continuing education courses for three (3) years
66+15 from the end of the licensing period for which the continuing
67+16 education applied. The practitioner shall provide the board or
68+17 agency (established by IC 25-1-5-3) with copies of the certificates
69+EH 1347—LS 7673/DI 151 2
70+1 of completion upon the board's or agency's request for a
71+2 compliance audit.
72+3 (b) This subsection does not apply to an individual licensed under
73+4 IC 25-34.1. Following every license renewal period, the agency with
74+5 consultation from the board may randomly audit for compliance more
75+6 than one percent (1%) but less than ten percent (10%) of the
76+7 practitioners required to take continuing education courses.
77+8 (c) This subsection applies only to individuals licensed under
78+9 IC 25-34.1. Following every license renewal period for a broker's
79+10 license issued under IC 25-34.1, the agency in consultation with the
80+11 board may randomly audit for compliance more than one percent (1%)
81+12 but less than ten percent (10%) of the practitioners required to take
82+13 continuing education courses. The agency in consultation with the
83+14 board shall perform:
84+15 (1) annual; and
85+16 (2) random;
86+17 audits for compliance of more than one percent (1%) but less than
87+18 ten percent (10%) of the practitioners licensed under IC 25-34.1
88+19 required to take continuing education courses.
89+20 SECTION 2. IC 25-34.1-4-0.5, AS AMENDED BY P.L.116-2015,
90+21 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
91+22 JULY 1, 2025]: Sec. 0.5. Except as provided in section 6 of this
92+23 chapter, to become a managing broker, an individual must:
93+24 (1) hold an active broker's license for at least two (2) three (3)
94+25 years; and
95+26 (2) take and pass at least twenty-four (24) hours of broker
96+27 management courses approved by the commission; and
97+28 (3) pass a written examination prepared and administered by
98+29 the commission or its duly appointed agent.
99+30 SECTION 3. IC 25-34.1-4-5, AS AMENDED BY P.L.116-2015,
100+31 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
101+32 JULY 1, 2025]: Sec. 5. (a) Each broker company shall do the
102+33 following:
103+34 (1) shall keep in Maintain one (1) or more trust accounts (interest
104+35 or noninterest bearing).
105+36 (2) Deposit into a trust account described in subdivision (1) all
106+37 funds belonging to others that come into the possession of the
107+38 broker company or of any broker whose license the broker
108+39 company is holding. and
109+40 (2) (3) shall Clearly identify any account containing those funds
110+41 as that is a trust account.
111+42 The trust accounts shall contain all earnest money deposits, funds held
112+EH 1347—LS 7673/DI 151 3
113+1 for closing escrows, sale proceeds not yet disbursed, and all other funds
114+2 belonging to others.
115+3 (b) The broker company shall not use any trust account for the
116+4 deposit of any personal funds or other business funds and shall keep a
117+5 detailed record of the funds and any interest accrued in each trust
118+6 account that identifies the amount of funds held for each beneficiary.
119+7 Any interest earned shall be held for the beneficiary.
120+8 (c) Upon:
121+9 (1) the death of the sole proprietor, in the case of a sole
122+10 proprietorship broker company;
123+11 (2) the termination of a broker company; or
124+12 (3) the expiration, revocation, or suspension of a broker
125+13 company's license;
126+14 the commission shall take custody of each trust account of the broker
127+15 company and may appoint a successor trustee to protect and distribute
128+16 the proceeds of that account.
129+17 SECTION 4. IC 25-34.1-12-1, AS ADDED BY P.L.47-2024,
130+18 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
131+19 JULY 1, 2025]: Sec. 1. Listing agreements, or any authority to sell or
132+20 lease, shall show a definite date of expiration and shall be in writing,
133+21 either on paper or in electronic format, with one (1) copy to go to the
134+22 owner within three (3) business days of the time of signing. The
135+23 original and all electronic files shall be retained in the office of the
136+24 listing broker.
137+25 SECTION 5. IC 25-34.1-12-2, AS ADDED BY P.L.47-2024,
138+26 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
139+27 JULY 1, 2025]: Sec. 2. Buyer agency agreements, or any authority to
140+28 represent a buyer or tenant, shall show a definite date of expiration
141+29 and shall be in writing, either on paper or in electronic format, with one
142+30 (1) copy to go to the buyer or tenant within three (3) business days of
143+31 the time of signing. The original and all electronic files shall be
144+32 retained in the office of the selling broker.
145+33 SECTION 6. IC 32-21-5-7, AS AMENDED BY P.L.175-2023,
146+34 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
147+35 JULY 1, 2025]: Sec. 7. (a) The Indiana real estate commission
148+36 established by IC 25-34.1-2-1 shall adopt a specific disclosure form
149+37 that contains the following:
150+38 (1) Disclosure by the owner of the known condition of the
151+39 following:
152+40 (A) The foundation.
153+41 (B) The mechanical systems.
154+42 (C) The roof.
155+EH 1347—LS 7673/DI 151 4
156+1 (D) The structure.
157+2 (E) The water and sewer systems.
158+3 (F) Additions that may require improvements to the sewage
159+4 disposal system.
160+5 (G) Other areas that the Indiana real estate commission
161+6 determines are appropriate.
162+7 (2) Disclosure by the owner of known:
163+8 (A) contamination caused by the manufacture of a controlled
164+9 substance (as defined by IC 35-48-1-9) on the property that
165+10 has not been certified as decontaminated by a qualified
166+11 inspector who is certified under IC 16-19-3.1; or
167+12 (B) manufacture of methamphetamine or dumping of waste
168+13 from the manufacture of methamphetamine in a residential
169+14 structure on the property.
170+15 (3) A notice to the prospective buyer that contains substantially
171+16 the following language:
172+17 "The prospective buyer and the owner may wish to obtain
173+18 professional advice or inspections of the property and provide for
174+19 appropriate provisions in a contract between them concerning any
175+20 advice, inspections, defects, or warranties obtained on the
176+21 property.".
177+22 (4) A notice to the prospective buyer that contains substantially
178+23 the following language:
179+24 "The representations in this form are the representations of the
180+25 owner and are not the representations of the agent, if any. This
181+26 information is for disclosure only and is not intended to be a part
182+27 of any contract between the buyer and owner.".
183+28 (5) A disclosure by the owner that an airport is located within a
184+29 geographical distance from the property as determined by the
185+30 Indiana real estate commission. The commission may consider the
186+31 differences between an airport serving commercial airlines and an
187+32 airport that does not serve commercial airlines in determining the
188+33 distance to be disclosed.
189+34 (6) A disclosure by the owner that:
190+35 (A) the property is located near a military installation, within
191+36 a state area of interest (as defined in IC 36-7-30.2-6), and may
192+37 be impacted to some degree by the effects of the installation's
193+38 military operations; and
194+39 (B) local laws may restrict use and development of the
195+40 property to promote compatibility with military installation
196+41 operations.
197+42 (7) If the owner has personal knowledge of the fact that all or a
198+EH 1347—LS 7673/DI 151 5
199+1 portion of the real estate is located within a community's
200+2 floodplain flood plain boundaries, as indicated in a Federal
201+3 Emergency Management Agency Flood Insurance Rate Map, a
202+4 disclosure by the owner of that fact.
203+5 (8) A disclosure by the owner that the property is located
204+6 within a locally designated historic district under IC 36-7-11.
205+7 (9) A disclosure by the owner of a conservation easement (as
206+8 defined in IC 32-23-5-2).
207+9 (b) Responsibility for the disclosure required under subsection
208+10 (a)(6) rests solely with the owner of the property and no liability for the
209+11 owner's failure to make the required disclosure shall accrue to any third
210+12 party. Failure of the owner to make the required disclosure under
211+13 subsection (a)(6) shall not:
212+14 (1) invalidate the transfer of the property; or
213+15 (2) create any encumbrance or lien upon any legal or equitable
214+16 title to the property.
215+EH 1347—LS 7673/DI 151 6
216+COMMITTEE REPORT
217+Mr. Speaker: Your Committee on Financial Institutions, to which
218+was referred House Bill 1347, has had the same under consideration
219+and begs leave to report the same back to the House with the
220+recommendation that said bill be amended as follows:
221+Page 3, between lines 26 and 27, begin a new line block indented
222+and insert:
223+"(8) A disclosure by the owner that the property is located
224+within a locally designated historic district under IC 36-7-11.
225+ (9) A disclosure by the owner of a conservation easement (as
226+defined in IC 32-23-5-2).".
227+Page 3, delete lines 27 through 33.
228+and when so amended that said bill do pass.
229+(Reference is to HB 1347 as introduced.)
230+TESHKA
231+Committee Vote: yeas 11, nays 0.
232+_____
233+COMMITTEE REPORT
234+Mr. President: The Senate Committee on Insurance and Financial
235+Institutions, to which was referred House Bill No. 1347, has had the
236+same under consideration and begs leave to report the same back to the
237+Senate with the recommendation that said bill be AMENDED as
238+follows:
239+Page 1, between the enacting clause and line 1, begin a new
240+paragraph and insert:
241+"SECTION 1. IC 25-1-4-3, AS AMENDED BY P.L.168-2016,
15242 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16243 JULY 1, 2025]: Sec. 3. (a) Notwithstanding any other law, a board that
17244 is specifically authorized or mandated to require continuing education
18245 as a condition to renew a registration, certification, or license must
19246 require a practitioner to comply with the following renewal
20247 requirements:
21248 (1) The practitioner shall provide the board with a sworn
22249 statement executed by the practitioner that the practitioner has
23250 fulfilled the continuing education requirements required by the
24251 board, after which the board will forward the sworn statement to
252+EH 1347—LS 7673/DI 151 7
25253 the agency (established by IC 25-1-5-3).
26254 (2) The practitioner shall retain copies of certificates of
27255 completion for continuing education courses for three (3) years
28256 from the end of the licensing period for which the continuing
29257 education applied. The practitioner shall provide the board or
30258 agency (established by IC 25-1-5-3) with copies of the certificates
31259 of completion upon the board's or agency's request for a
32260 compliance audit.
33261 (b) This subsection does not apply to an individual licensed under
34262 IC 25-34.1. Following every license renewal period, the agency with
35263 consultation from the board may randomly audit for compliance more
36-HEA 1347 — Concur 2
37264 than one percent (1%) but less than ten percent (10%) of the
38265 practitioners required to take continuing education courses.
39266 (c) This subsection applies only to individuals licensed under
40267 IC 25-34.1. Following every license renewal period for a broker's
41268 license issued under IC 25-34.1, the agency in consultation with the
42269 board may randomly audit for compliance more than one percent (1%)
43270 but less than ten percent (10%) of the practitioners required to take
44271 continuing education courses. The agency in consultation with the
45272 board shall perform:
46273 (1) annual; and
47274 (2) random;
48275 audits for compliance of more than one percent (1%) but less than
49276 ten percent (10%) of the practitioners licensed under IC 25-34.1
50277 required to take continuing education courses.
51278 SECTION 2. IC 25-34.1-4-0.5, AS AMENDED BY P.L.116-2015,
52279 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
53280 JULY 1, 2025]: Sec. 0.5. Except as provided in section 6 of this
54281 chapter, to become a managing broker, an individual must:
55282 (1) hold an active broker's license for at least two (2) three (3)
56283 years; and
57284 (2) take and pass at least twenty-four (24) hours of broker
58285 management courses approved by the commission; and
59286 (3) pass a written examination prepared and administered by
60-the commission or its duly appointed agent.
61-SECTION 3. IC 25-34.1-4-5, AS AMENDED BY P.L.116-2015,
62-SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
63-JULY 1, 2025]: Sec. 5. (a) Each broker company shall do the
64-following:
65-(1) shall keep in Maintain one (1) or more trust accounts (interest
66-or noninterest bearing).
67-(2) Deposit into a trust account described in subdivision (1) all
68-funds belonging to others that come into the possession of the
69-broker company or of any broker whose license the broker
70-company is holding. and
71-(2) (3) shall Clearly identify any account containing those funds
72-as that is a trust account.
73-The trust accounts shall contain all earnest money deposits, funds held
74-for closing escrows, sale proceeds not yet disbursed, and all other funds
75-belonging to others.
76-(b) The broker company shall not use any trust account for the
77-deposit of any personal funds or other business funds and shall keep a
78-detailed record of the funds and any interest accrued in each trust
79-HEA 1347 — Concur 3
80-account that identifies the amount of funds held for each beneficiary.
81-Any interest earned shall be held for the beneficiary.
82-(c) Upon:
83-(1) the death of the sole proprietor, in the case of a sole
84-proprietorship broker company;
85-(2) the termination of a broker company; or
86-(3) the expiration, revocation, or suspension of a broker
87-company's license;
88-the commission shall take custody of each trust account of the broker
89-company and may appoint a successor trustee to protect and distribute
90-the proceeds of that account.
91-SECTION 4. IC 25-34.1-12-1, AS ADDED BY P.L.47-2024,
287+the commission or its duly appointed agent.".
288+Page 2, between lines 12 and 13, begin a new paragraph and insert:
289+"SECTION 4. IC 25-34.1-12-1, AS ADDED BY P.L.47-2024,
92290 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
93291 JULY 1, 2025]: Sec. 1. Listing agreements, or any authority to sell or
94292 lease, shall show a definite date of expiration and shall be in writing,
95293 either on paper or in electronic format, with one (1) copy to go to the
96294 owner within three (3) business days of the time of signing. The
295+EH 1347—LS 7673/DI 151 8
97296 original and all electronic files shall be retained in the office of the
98297 listing broker.
99298 SECTION 5. IC 25-34.1-12-2, AS ADDED BY P.L.47-2024,
100299 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
101300 JULY 1, 2025]: Sec. 2. Buyer agency agreements, or any authority to
102301 represent a buyer or tenant, shall show a definite date of expiration
103302 and shall be in writing, either on paper or in electronic format, with one
104303 (1) copy to go to the buyer or tenant within three (3) business days of
105304 the time of signing. The original and all electronic files shall be
106-retained in the office of the selling broker.
107-SECTION 6. IC 32-21-5-7, AS AMENDED BY P.L.175-2023,
108-SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
109-JULY 1, 2025]: Sec. 7. (a) The Indiana real estate commission
110-established by IC 25-34.1-2-1 shall adopt a specific disclosure form
111-that contains the following:
112-(1) Disclosure by the owner of the known condition of the
113-following:
114-(A) The foundation.
115-(B) The mechanical systems.
116-(C) The roof.
117-(D) The structure.
118-(E) The water and sewer systems.
119-(F) Additions that may require improvements to the sewage
120-disposal system.
121-(G) Other areas that the Indiana real estate commission
122-HEA 1347 — Concur 4
123-determines are appropriate.
124-(2) Disclosure by the owner of known:
125-(A) contamination caused by the manufacture of a controlled
126-substance (as defined by IC 35-48-1-9) on the property that
127-has not been certified as decontaminated by a qualified
128-inspector who is certified under IC 16-19-3.1; or
129-(B) manufacture of methamphetamine or dumping of waste
130-from the manufacture of methamphetamine in a residential
131-structure on the property.
132-(3) A notice to the prospective buyer that contains substantially
133-the following language:
134-"The prospective buyer and the owner may wish to obtain
135-professional advice or inspections of the property and provide for
136-appropriate provisions in a contract between them concerning any
137-advice, inspections, defects, or warranties obtained on the
138-property.".
139-(4) A notice to the prospective buyer that contains substantially
140-the following language:
141-"The representations in this form are the representations of the
142-owner and are not the representations of the agent, if any. This
143-information is for disclosure only and is not intended to be a part
144-of any contract between the buyer and owner.".
145-(5) A disclosure by the owner that an airport is located within a
146-geographical distance from the property as determined by the
147-Indiana real estate commission. The commission may consider the
148-differences between an airport serving commercial airlines and an
149-airport that does not serve commercial airlines in determining the
150-distance to be disclosed.
151-(6) A disclosure by the owner that:
152-(A) the property is located near a military installation, within
153-a state area of interest (as defined in IC 36-7-30.2-6), and may
154-be impacted to some degree by the effects of the installation's
155-military operations; and
156-(B) local laws may restrict use and development of the
157-property to promote compatibility with military installation
158-operations.
159-(7) If the owner has personal knowledge of the fact that all or a
160-portion of the real estate is located within a community's
161-floodplain flood plain boundaries, as indicated in a Federal
162-Emergency Management Agency Flood Insurance Rate Map, a
163-disclosure by the owner of that fact.
164-(8) A disclosure by the owner that the property is located
165-HEA 1347 — Concur 5
166-within a locally designated historic district under IC 36-7-11.
167- (9) A disclosure by the owner of a conservation easement (as
168-defined in IC 32-23-5-2).
169-(b) Responsibility for the disclosure required under subsection
170-(a)(6) rests solely with the owner of the property and no liability for the
171-owner's failure to make the required disclosure shall accrue to any third
172-party. Failure of the owner to make the required disclosure under
173-subsection (a)(6) shall not:
174-(1) invalidate the transfer of the property; or
175-(2) create any encumbrance or lien upon any legal or equitable
176-title to the property.
177-HEA 1347 — Concur Speaker of the House of Representatives
178-President of the Senate
179-President Pro Tempore
180-Governor of the State of Indiana
181-Date: Time:
182-HEA 1347 — Concur
305+retained in the office of the selling broker.".
306+Renumber all SECTIONS consecutively.
307+and when so amended that said bill do pass.
308+(Reference is to HB 1347 as printed January 21, 2025.)
309+BALDWIN, Chairperson
310+Committee Vote: Yeas 7, Nays 0.
311+EH 1347—LS 7673/DI 151