Indiana State Law Requires Written Listing and Buyer Agency Agreements between Real Estate Brokers and their Clients, Effective July 1, 2024
STATEWIDE – The Indiana Real Estate Commission (the Commission) and the Indiana Professional Licensing Agency (IPLA) wish to inform all Indiana-licensed real estate brokers, as well as industry stakeholders and partners, of certain regulatory requirements recently enacted by the Indiana General Assembly under House Enrolled Act 1068-2024.Specifically, House Enrolled Act 1068-2024 adds Indiana Code § 25-34.1-12 to state statute, which requires all Indiana real estate licensees to secure written representation agreements to formalize their agency relationships with their listing (owner/seller) clients and buyer clients. House Enrolled Act 1068-2024 was signed into law by Governor Holcomb on March 11, 2024, and will become effective law in the state of Indiana on July 1, 2024.
House Enrolled Act 1068-2024 creates consistent, minimum requirements for the listing agreements and buyer agreements. For real estate brokers to lawfully represent owner/seller clients and buyer clients effective July 1, 2024, the authority executed between the real estate broker and the owner/seller client, or the buyer client, must be in writing, either on paper or in electronic format, and must provide (show) a definitive date of expiration. The real estate broker shall provide one (1) copy of the agreement to the owner/seller client or the buyer client within three (3) business days of the time of signing, and the original agreement and all electronic files shall be retained by the real estate broker (in the broker’s office). House Enrolled Act 1068-2024 does not explicitly require real estate brokers to supply/submit their written agreements to the Commission and the IPLA. Also, House Enrolled Act 1068-2024 does not include a specific standard for when the agreement should be executed. It is reflective of existing state law under Indiana Code § 25-34.1-10-9.5, which defines the “agency relationship” between a licensee and an owner/seller or a buyer, establishing authority to represent an owner/seller or a buyer.
