STATEHOUSE (Jan. 26, 2026) – State Rep. Tim O'Brien's (R-Evansville) legislation requiring real estate brokerages to disclose compensation resulting from client referral agreements recently passed the Indiana House of Representatives.
House Bill 1252 would require a broker company who refers a client or customer to another broker company to disclose any compensation made for the referral. O'Brien said the bill is a simple way to increase transparency so consumers can be informed if a referral was made for compensation.
"As a real estate agent myself, I fully support the broader push in the industry toward more transparency and consumer protections in these types of deals," O'Brien said. "Real estate professionals strive to act ethically and support their clients' best interests at all times. This bill creates clear uniform expectations across the industry and reinforces best practices."
In 2025, O'Brien co-authored legislation providing robust protections and increased transparency measures for Hoosier homebuyers. House Enrolled Act 1347 protects buyers from fraud by ensuring earnest money be held in a trust rather than by a third party, ensures that buyers have full knowledge of any restrictions on a prospective home, and strengthens regulation of managing brokers of real estate agents by requiring them to be licensed for at least three years and pass a written examination.
"The real estate market can experience growth and improved affordability by giving consumers the tools they need to make truly informed decisions. I will continue to support legislation that creates a more even playing field for Hoosier homebuyers," O'Brien said.
House Bill 1252 now advances to the senate for consideration. To learn more about this legislation and follow session visit iga.in.gov.
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State Rep. Tim O'Brien (R-Evansville) represents House District 78,
which includes portions of Vanderburgh and Warrick counties.
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