Broker Jamie in Indiana is working with buyer client Olivia under a written buyer agency agreement. Olivia asks Jamie to show her a property that is listed as 'For Sale By Owner' (FSBO) with no cooperating broker compensation offered. Under Indiana law, what is the status of Jamie's agency relationship with Olivia when she shows this FSBO property?
Correct Answer
A) Jamie continues to represent Olivia as her buyer's agent regardless of the compensation arrangement
Under IC 25-34.1-10, a buyer agency relationship is established by agreement between the broker and buyer, not by the compensation structure of any particular property. Jamie's written buyer agency agreement with Olivia remains in full effect when showing a FSBO property. The absence of cooperating broker compensation does not terminate or alter the agency relationship; it only affects how Jamie will be compensated, which should be addressed in the buyer agency agreement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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.
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