A new Indiana law is impacting the relationship between real estate agents and those looking to buy a home.
Effective July 1, House Bill 1068 requires a conversation and written agreement between the homebuyer and agent before any properties may be shown.
The form “establishes a relationship between the buyer and agent at the front end and the fiduciary responsibility the agent has to that buyer,” says John Briscoe, co-owner of F.C. Tucker Emge in Evansville.
The change is aimed at creating more transparency in how agents are paid, says Gretchen Muchnick, Briscoe’s sister and co-owner of F.C. Tucker Emge.
Previously, typical practice was for the seller to compensate the listing agent, who then would share that with the buyer’s agent. That still is an option. Although the new law mandates a signed agreement between buyer and agent before showings, the agreement does not obligate a buyer to stick with an agent if both parties are not suited to work together.
“For most buyers, having a seller who is willing to pay their agent is the only way they can afford to have good representation – which, ultimately, benefits the seller, too,” Muchnick says.
