Managing Broker Diana operates a real estate firm in South Bend, Indiana. Broker Paul at her firm has a listing for seller Mark. Broker Rachel, also at Diana's firm, is working with buyer Lisa, who wants to purchase Mark's property. Diana designates Paul to represent Mark and Rachel to represent Lisa. Under Indiana law, which of the following statements about Diana's role in this designated agency arrangement is correct?
Correct Answer
A) Diana may serve as a dual agent or neutral intermediary while Paul and Rachel each represent their respective clients
Under IC 25-34.1-10, when a managing broker establishes designated agency within a firm, the managing broker may serve in the role of a dual agent or neutral intermediary for the overall transaction while the designated brokers (Paul and Rachel) each represent their respective clients exclusively. This structure is one of the key features of Indiana's designated agency provisions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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