First Regular Session 118th General Assembly (2013)
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HOUSE ENROLLED ACT No. 1372
AN ACT to amend the Indiana Code concerning property.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 25-34.1-10-12.5; (13)HE1372.1.1. -->
SECTION 1. IC 25-34.1-10-12.5
(CURRENT VERSION) IS
AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]:
Sec. 12.5. (a) An individual licensee affiliated with a principal broker
represents only the client with which the licensee is working in an
in-house agency relationship. A client represented by an individual
licensee affiliated with a principal broker is represented only by that
licensee to the exclusion of all other licensees. A principal or managing
broker does not represent any party in such transactions unless the
principal or managing broker has an agency relationship to personally
represent a client.
(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
records of prior transactions 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 unless the broker or affiliated licensee
had actual knowledge of any adverse material facts or risks with
respect to the real property. 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 on imputed
knowledge of the adverse material facts or risks.
SOURCE: IC 25-34.1-10-12.5; (13)HE1372.1.2. -->
SECTION 2. IC 25-34.1-10-12.5
(DELAYED VERSION), AS
AMENDED BY P.L.127-2012, SECTION 45, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2014]: Sec. 12.5. (a) An
individual licensee affiliated with a managing broker represents only
the client with which the licensee is working in an in-house agency
relationship. A client represented by an individual licensee affiliated
with a managing broker is represented only by that licensee to the
exclusion of all other licensees. A managing broker does not represent
any party in such transactions unless the managing broker has an
agency relationship to personally represent a client.
(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 records of prior transactions 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 unless the broker or
affiliated licensee had actual knowledge of any adverse material
facts or risks with respect to the real property. 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 on imputed knowledge of the adverse material facts or risks.
SOURCE: IC 32-21-5-10; (13)HE1372.1.3. -->
SECTION 3. IC 32-21-5-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 10. (a) An owner must
complete and sign a disclosure form and submit the form to a
prospective buyer before an offer for the sale of the residential real
estate is accepted.
(b) An appraiser retained to appraise the residential real estate for
which the disclosure form has been prepared shall be given a copy of
the form upon request. This subsection applies only to appraisals made
for the buyer or an entity from which the buyer is seeking financing.
(c) Before closing, an accepted offer is not enforceable against the
buyer until the owner and the prospective buyer have signed the
disclosure form. After closing, the failure of the owner to deliver a
disclosure statement form to the buyer does not by itself invalidate a
real estate transaction.
A buyer may not invalidate a real estate
transaction or a contract to purchase real estate due to the buyer's
failure to sign a seller's disclosure form that has been received or
acknowledged by the buyer.
HEA 1372 _ Concur
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