Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Real Estate Disclosures topic
No spam. Unsubscribe anytime.
Committee clears real-estate disclosure bill adding historic-district and easement notices and clarifying escrow rules
Summary
House Bill 1347 would add two items to the statutorily required seller's residential disclosure—whether a property lies in a locally designated historic district and whether a conservation or preservation easement encumbers the property—and clarifies that brokers must maintain trust accounts for earnest money. The panel adopted an alignment
Representative Clare presented House Bill 1347, which would add two items to the statutorily prescribed seller’s residential disclosure and clarify broker trust-account requirements. The proposed disclosure additions are (1) whether the property is located in a locally designated historic district, which may subject exterior changes to review by a local preservation commission, and (2) whether the property is subject to a conservation or preservation easement that runs with the deed.
The bill also clarifies that a real-estate brokerage shall maintain one or more trust accounts to hold earnest money; third-party escrow platforms remain an option but the bill ensures brokers continue to offer the consumer the choice of holding funds in a broker trust account and the statutory protections that accompany that option. Representative Clare and supporters told the committee the changes are consumer-protection measures to ensure prospective buyers are aware of restrictions on future use and to preserve statutory protections available when a broker holds earnest money.
The committee also considered an amendment to align licensing and audit provisions with the Professional Licensing Agency’s existing practices, including adjusting the experience requirement from two to three years before becoming a managing broker and requiring a written test for managing-broker applicants. The association that represents realtors, the Indiana Association of Realtors, supported the bill; James Schultz of the Indiana Land Title Association also testified in favor.
After testimony the committee voted to move the bill to the floor; the chair announced the committee’s roll call and recorded ayes, then reported the bill out of committee.
