Bill Text: IN HB1372 | 2013 | Regular Session | Introduced
Bill Title: Knowledge imputed to real estate broker.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-05-13 - Public Law 150 [HB1372 Detail]
Download: Indiana-2013-HB1372-Introduced.html
Citations Affected: IC 25-34.1-10.
Synopsis: Knowledge imputed to real estate broker. Provides that
information concerning defects in a property that is contained in
transaction records maintained by a brokerage may not be imputed to
a broker or affiliated licensee of the brokerage. Bars a civil action
against a broker or licensee for failure to disclose a defect if the action
is based on imputed knowledge.
Effective: July 1, 2013; July 1, 2014.
January 22, 2013, read first time and referred to Committee on Judiciary.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
property.
(b) A licensee who personally represents both the seller and buyer or both the landlord and tenant in a real estate transaction is a limited agent and is required to comply with the provisions of this chapter governing limited agents.
(c) A licensee representing a client in an in-house agency relationship owes the client duties and obligations set forth in this chapter and shall not disclose material or confidential information
obtained from the client to other licensees, except to the principal or
managing broker for the purpose of seeking advice or assistance for the
client's benefit.
(d) A principal broker, managing broker, and any affiliated licensee
shall take reasonable and necessary care to protect any material or
confidential information disclosed by a client to the client's in-house
agent.
(e) In all in-house agency relationships, a principal broker,
managing broker, and an individual licensee possess only actual
knowledge and information. There is no imputation of agency,
knowledge, or information among or between clients, the principal
broker, the managing broker, and licensees. Information contained in
transaction records maintained by the brokerage or agency
concerning any existing or previous adverse material facts or risks
with respect to real property may not be imputed to a broker or
affiliated licensee. A person may not bring a cause of action against
a broker or licensee for failure to disclose adverse material facts or
risks if the cause of action is based, in whole or in part, on imputed
knowledge of the adverse material facts or risks.
(b) A licensee who personally represents both the seller and buyer or both the landlord and tenant in a real estate transaction is a limited agent and is required to comply with the provisions of this chapter governing limited agents.
(c) A licensee representing a client in an in-house agency relationship owes the client duties and obligations set forth in this chapter and shall not disclose material or confidential information obtained from the client to other licensees, except to the managing broker for the purpose of seeking advice or assistance for the client's benefit.
(d) A managing broker and any affiliated licensee shall take reasonable and necessary care to protect any material or confidential information disclosed by a client to the client's in-house agent.
(e) In all in-house agency relationships, a managing broker and an individual licensee possess only actual knowledge and information. There is no imputation of agency, knowledge, or information among or between clients, the managing broker, and licensees. Information contained in transaction records maintained by the brokerage or agency concerning any existing or previous adverse material facts or risks with respect to real property may not be imputed to a broker or affiliated licensee. A person may not bring a cause of action against a broker or licensee for failure to disclose adverse material facts or risks if the cause of action is based, in whole or in part, on imputed knowledge of the adverse material facts or risks.
