Managing Broker Sandra operates a real estate firm in Bloomington, Indiana. One of her brokers, Derek, has been working with both the seller and buyer in the same transaction as a dual agent. The parties gave informed written consent to the dual agency arrangement. Which of the following duties is Derek MOST restricted from performing as a dual agent under Indiana law?
Correct Answer
C) Providing undivided loyalty and advocating aggressively for either party's negotiating position
Under IC 25-34.1-10, a dual agent cannot provide undivided loyalty to either party or aggressively advocate for one party's position over the other. The duty of undivided loyalty is fundamentally incompatible with dual agency because the broker cannot simultaneously serve two opposing interests with full loyalty. This is the primary limitation on a dual agent's duties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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