Broker James works for Lakeside Realty in Indianapolis. He has a listing agreement with seller Carol. Buyer Tom contacts James directly and wants James to help him purchase Carol's property. James agrees to represent both Carol and Tom in the transaction. Under Indiana law, what must James do before proceeding?
Correct Answer
D) Obtain informed written consent to dual agency from both Carol and Tom
Under IC 25-34.1-10, Indiana law permits dual agency, but only with the informed written consent of all parties involved. Before James can represent both Carol and Tom in the same transaction, he must disclose the dual agency relationship and obtain written consent from both the seller and the buyer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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