Indiana PL 226-2011; HEA 1273; RREAL IN Database

Legislative Update—Indiana

P.L. 226-2011 (H.E.A. 1273)

Effective Date: 05/13/2011

RREAL IN Database (Electronic storage of data on persons involved in real estate transactions)

Statute Amended: IC 27-7-3-15.5


Effective January 1, 2010, pursuant to Indiana Code 27-7-3-15.5, closing agents (as defined by Indiana Code 6-1.1-12-43(a)(2)) are required to input certain information pertaining to real estate transactions into the Indiana Department of Insurance Residential Real Estate Acquisition and Licensee Information & Numbers Database (“RREAL IN database”). The main objective of the legislation is to assist various Indiana state agencies in combating mortgage fraud. The RREAL IN database and the process are managed by the Department of Insurance.

Indiana Code 27-7-3-15.5 requires that information regarding the following transactions be entered into the RREAL IN database:

-        First lien residential purchase money mortgage transactions (IC 27-7-3-15.5(1)(A)(i)); and

-        Residential refinance transactions (IC 27-7-3-15.5(1)(A)(ii)).


In addition, the 2011 Indiana Legislature has enacted legislation (H.E.A. 1273) expanding the information closing agents are required to enter into the RREAL IN database to include mortgage and real estate transactions as defined in IC 24-9-3-7 (a) and (b). The following transactions are reportable:

-        Cash transactions;

-        land contracts;

-        reverse mortgages;

-        home equity;

-        subordinate Mortgages;

-        business loans secured by residential property; and

-        commercial loans secured by residential property.


Indiana law requires that all closing transactions be entered into the RREAL IN database within 10 business days of the closing date. See IC 6-1.1-12.43. Under IC 27-7-3-15.5, closing agents are required to input the following information into the RREAL IN database:

-        The type of transaction

-        Title agent or closer and license number

-        Title insurance (Underwriter)

-        Type of policy issued

-        Name of buyer

-        Name of seller

-        Loan broker and license number

-        Loan originator name and license

-        Mortgagee

-        Purchase Price

-        Real estate appraiser and license number or certificate

-        Appraisal Amount

-        Real estate broker and license number

-        Property parcel number

-        Property location

-        County name

-        Date of closing

-        Date agent received closing instructions from the creditor


The Indiana Department of Insurance has provided a worksheet to assist real estate professionals in the gathering of information.

For transactions that are required to be documented by the closing agent and the closing agent fails to do so in accordance with the statute, IC 6-1.1-12-43(g) imposes a civil penalty of $25 per transaction. In addition, IC 27-7-3-15.5(d) requires that licensees such as real estate brokers and appraisers provide to the Closing Agent in the transaction the person’s: (1) legal name; and (2) license number, certificate number, registration number before or at the closing. Licensees that fail to comply with the statute’s requirements shall be subject to civil penalties of one hundred dollars ($100) per qualifying transaction. IC 27-7-3-15.5(e). Fines will be enforced by the state agency that has administrative jurisdiction over the licensee. IC 27-7-3-15.5(e)(1).

Finally, the Indiana Department of Insurance may adopt rules under IC 4-22-2 to establish, collect, and change as necessary an administrative fee to cover the department’s expenses in maintaining the database. IC 27-7-3-15.5(h). Although the closing agent may not charge a separate line item fee for processing information in the database, it may charge a minimal increase ($50$10) to the bundled closing fee. IC 27-7-3-15.5(i); see also Indiana Department of Insurance, RREAL IN Frequently Asked Questions.

Questions? Contact an Underwriter

By: ATG Underwriting Department | Posted on: Tue, 05/31/2011 - 12:00am