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HB 850

Home Builders - Open House - Sales Representative Disclosure Requirements

2026 Regular Session Introduced by Harry Bhandari and 1 co-sponsor

HB 850 requires home builders' sales representatives to disclose their identity and financial interests with builders during open house events for new construction homes.

Approved by the Governor - Chapter 544
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Bill Summary · HB 850

Legislative bill overview

HB 850 establishes disclosure requirements for real estate sales representatives during open house events for newly constructed homes. The bill mandates that sales representatives clearly identify themselves and disclose their financial interests or affiliations with home builders. These requirements aim to increase transparency in the new home sales process.

Why is this important

Open house events are often consumers' first interaction with new home purchases, where information asymmetries favor builders and their agents. Clear disclosure of sales representative affiliations and incentives helps potential buyers make more informed decisions and understand potential conflicts of interest. This consumer protection mechanism is particularly relevant given the significant financial commitment homebuyers make.

Potential points of contention

  • Business compliance burden: Builders and sales representatives may argue the disclosure requirements create additional administrative overhead and could complicate standard sales practices
  • Scope and specificity: Ambiguity about what constitutes sufficient "disclosure" could lead to disputes over whether representatives have adequately informed consumers or met the bill's standards
  • Competitive fairness concerns: Questions about whether these requirements apply uniformly to all sales channels (open houses vs. by-appointment showings) and whether they disadvantage smaller builders compared to larger operations with established compliance systems

Compiled from official sources — confirm details with the bill’s official record.

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