Indiana Legislative Updates
Note that legislative updates on this page are not encompassing of all recent legislation potentially affecting Indiana commercial real estate professionals. This information is provided as a courtesy. CREA and ICBR are not responsible for any actions you take or do not take in response to the legal changes.
For questions regarding the below legislation, please consult your legal council. REALTOR® members may consult the IAR legal hotline at 1-800-444-5472 with any questions.
Indiana Senate Enrolled Act 256 Began July 1, 2026
Starting July 1, 2026, Indiana SEA 256 establishes restrictions on the acquisition and ownership of real property in Indiana by certain foreign-owned entities and individuals, building on existing Indiana legislature.
Overview
Prohibited parties as listed below cannot acquire Indiana real property under the new legislation:
- Individuals who are citizens or residents of China, Russia, North Korea, Iran, or other designated foreign adversaries (see bill below for comprehensive list)
- Business entities organized in or headquartered in foreign adversaries
- Business entities where 51% or more ownership is held by a citizen/resident of a foreign adversary
- Agents, trustees, and fiduciaries acting on behalf of prohibited persons
Note exemptions for dual US/foreign citizens, US citizens, lawful permanent residents, and those granted asylum. Residential leases under 24 months are exempt.
Prohibited persons may not acquire real property, mineral rights, and/or water/riparian rights. Starting July 1, 2026, prohibited persons may not enter into new lease agreements for non-residential property. Persons owning property before July 1, 2026 may retain ownership but cannot act as agents of a foreign adversary. The Indiana Attorney General must prove the owner is acting as a foreign agent, with burden falling on the owner to demonstrate no security risk.
See full bill for details on enforcement and potential penalties if violated.
This list is not intended to be exhaustive of all considerations. CREA and ICBR are not responsible or liable for any actions you take or do not take in response to this legal change.
What You Need to Do:
Ensure your real estate office ensures compliance by implementing client verification procedures, obtaining written client attestations and maintaining documentation, identifying all beneficial owners and control persons, and exercising heightened scrutiny on trusts, partnerships, LLCs, and multinational clients. All staff should be trained on updated requirements and screenings.
These forms should be carefully reviewed and approved by a licensed commercial real estate attorney to ensure full compliance with Indiana law.
Questions?
View a PDF of SEA 256 here. For questions, please consult your legal counsel. REALTORS® also have the option to reach out to the IAR legal hotline if they have questions 1-800-444-5472.
Indiana House Enrolled Act 1252 Began July 1, 2026
Starting July 1, 2026, Indiana HEA 1252 requires that brokers provide written disclosure of any real estate referral fees between brokerage companies to customers and/or prospective clients. This law was created to increase transparency across the industry.
Overview
HEA 1252 requires a broker/broker company referring a client or customer to another broker/brokerage company to disclose any associated fees at the time of referral, making consumers aware of any fees before they enter into an agency relationship. All buyer/tenant and seller/landlord agency relationships must be executed in writing by brokerage companies alongside written disclosure of referral fees.
Note that HEA 1252 applies only to referral fees among real estate brokerage companies. It does not include any fees paid by or to third parties not licensed to practice real estate. HEA 1252 does not apply to referrals within the same brokerage company under the same Managing Broker.
See full law for details on enforcement and potential penalties if violated.
This overview is not intended to be exhaustive of all considerations. CREA and ICBR are not responsible or liable for any actions you take or do not take in response to this legal change.
What You Need to Do:
Ensure your real estate office ensures compliance by determining a procedure for disclosing referral fees in writing to customers or potential clients.
These disclosure forms should be carefully reviewed and approved by a licensed commercial real estate attorney to ensure full compliance with Indiana law.
Questions?
View a PDF of the law here. For questions, please consult your legal counsel. REALTORS® also have the option to reach out to the IAR legal hotline if they have questions 1-800-444-5472.