SOUTHERN INDIANA — A piece of recently passed Indiana legislation is aimed at eliminating the practice of real estate wholesaling and protecting consumers.
House Bill 1068 was signed by Gov. Eric Holcomb on March 11 after unanimously passing the House and Senate.
Rep. Ed Clere, R-New Albany, wrote the legislation, and has been a real estate broker for the past 20 years. He said there are two parts of the legislation, but both sections have the goal of consumer protection.
Clere said he introduced similar legislation last year where it passed the House but not in the Senate.
The first part addresses real estate wholesale, an action in which an unlicensed real estate solicitor convinces another person who owns property to sell it for a fraction of the cost, and turns around and sells to another buyer for the market price.
“They think they’re selling the house to the wholesaler, but they’re getting permission to go out and market the property to others,” Clere said.
The victims of the practice are typically vulnerable homeowners like seniors and those facing hardships like home repairs they can’t afford or medical issues.
“It’s a despicable practice,” Clere said.
The legislation will require disclosure