Under Indiana law, which of the following is NOT a duty that a seller's agent owes to the buyer as a non-client (a third party) in a real estate transaction?
Correct Answer
D) Advocating for the buyer's best interest and negotiating the lowest possible purchase price
Under IC 25-34.1-10, a seller's agent owes only honesty, fair dealing, and disclosure of known material facts to a buyer who is not the agent's client. The seller's agent does NOT owe the buyer fiduciary duties such as loyalty or advocacy. Negotiating the lowest possible price for the buyer would actually be a breach of the seller's agent's fiduciary duty to the seller. Advocating for the buyer's best interest is the role of a buyer's agent, not a seller's agent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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