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In real estate, it\u2019s all about location, location, location \u2013 but when it comes to legislative advocacy, timing is everything.<\/p>\nIn real estate, it\u2019s all about location, location, location \u2013 but when it comes to legislative advocacy, timing is everything.<\/p>\n
On March 11th<\/sup>, Indiana Governor Eric Holcomb signed a state-level requirement for buyer agency agreements into law – a top legislative priority of the Indiana Association of REALTORS\u00ae<\/sup> that represented more than two years of leadership discussion, member engagement and education, and outreach to policymakers.<\/p>\n The timing of the new state law gave Indiana REALTORS\u00ae<\/sup> a head start on preparing for NAR\u2019s proposed seller commission lawsuit settlement and ensured that all licensed real estate brokers across the state would operate by the same standard for consumer protection and transparency.<\/p>\n Said Maggie McShane, IAR\u2019s Senior Vice President of Government Affairs, \u201cIAR has encouraged our members for years to use buyer agency agreements to provide clarity on broker compensation, educate homebuyers on the value REALTORS\u00ae <\/sup>provide and ensure they understand the professional responsibilities of their broker in writing \u2013 the national litigation prompted us to pursue a consistent state requirement for written agreements for listing and buyer representation agreements.<\/p>\n \u201cThe ink had hardly dried on House Enrolled Act 1068 before the proposed NAR settlement shifted the industry in this direction,\u201d McShane added.<\/p>\n HEA1068 began as a straightforward bill intended to provide transparency and disclosures to homeowners who might be swayed by below-market cash offers from unscrupulous, unlicensed \u2018wholesalers.\u2019 The bill\u2019s author, Indiana Representative Edward Clere (himself a REALTOR\u00ae<\/sup>) recognized the opportunity to add critical consumer protections for buyers, as well, by accepting the written buyer agreement requirement as an early amendment.<\/p>\n IAR advocated for this amendment covering all licensed real estate practitioners representing buyers. \u00a0\u201cThis is a basic consumer-protection issue, and it protects the broker, too,\u201d asserts McShane.\u00a0 \u201cProfessional representation is crucial for homebuyers navigating a complex and challenging market and has value beyond a field in an MLS listing.\u201d<\/p>\n The new legislation solidifies the relationship between the buyer and the agent, spelling out the terms of the working relationship.\u00a0 \u201cIt\u2019s a normal practice in other professions, that relationships should be documented in writing,\u201d says McShane. \u201cFor the consumer, it helps them to understand the legal \u2018agency\u2019 duties of the broker and how they are paid; for brokers, even if it represents a change in business practices, this is a big step towards ensuring they are fairly compensated for their expertise and hard work as these negotiations move beyond the MLS.\u201d<\/p>\n Many legislators wanted to help the industry move forward, reports McShane: the bill, which will go into effect on July 1st<\/sup>, received unanimous support from both houses of Indiana\u2019s General Assembly.\u00a0 \u201cAny new business requirement is scrutinized in a state like Indiana, so we\u2019re pleased by the bipartisan consensus for real estate consumers and brokers,\u201d she noted, adding, \u201cWe were able to achieve this in large part because years of member advocacy, RPAC support and relationship-building gave us a seat at the table as the trusted voice of the industry and its consumers. We had the credibility and goodwill to work with Representative Clere and his colleagues to make this happen.\u201d<\/p>\n To learn more about how the Indiana Association of REALTORS\u00ae<\/sup> is working to protect consumers and professionals in the real estate industry, contact Maggie McShane, Senior Vice President of Government Affairs, at mmcshane@indianarealtors.com<\/a> or 317.408.3896. For more information on buyer broker agreements visit NAR\u2019s Window to the Law: The Benefits of Using a Buyer Representation Agreement<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"After two years of membership engagement and education, and policymaker outreach by the state\u2019s REALTOR\u00ae association, Indiana now has legislation requiring buyer agency agreements to be mandatory for all real estate licensees, effective July 1st. The timing of the new state law gave Indiana REALTORS\u00ae a head start on preparing for NAR\u2019s proposed seller commission same lawsuit settlement and ensures that all licensed real estate brokers across the state will operate by the standard for consumer protection and transparency. 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