Under the Indiana Agency Relationships in Real Estate Transactions Act, which of the following is NOT a recognized agency relationship type that Indiana licensees may enter into with clients?
Correct Answer
D) Non-disclosed agency, where the broker represents a party without informing the other party
Non-disclosed agency is not a recognized or permitted agency relationship under Indiana law. IC 25-34.1-10 requires that agency status be disclosed to all parties through the mandatory Indiana written agency disclosure at first substantive contact. Any undisclosed agency arrangement would violate Indiana's mandatory disclosure requirements and could subject the licensee to disciplinary action.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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