Broker Chris in Indiana has been representing seller Donna under a listing agreement for 60 days. Buyer Frank approaches Chris directly and asks to be represented by Chris in purchasing Donna's property. Chris explains the dual agency situation, and both Donna and Frank provide signed, written consent to dual agency. Three days later, Frank tells Chris he is having second thoughts and wants to withdraw his consent to dual agency. Under Indiana law, what is the effect of Frank's withdrawal of consent?
Correct Answer
D) Frank's withdrawal terminates the dual agency, and Chris must either obtain new consent or choose to represent only one party going forward
Under IC 25-34.1-10, consent to dual agency can be withdrawn by any party at any time. When Frank withdraws his consent, the dual agency relationship is no longer valid. Chris cannot continue as a dual agent without the consent of both parties. At that point, Chris must either obtain new consent from both parties to re-establish dual agency, or choose to represent only one party (either Donna or Frank) going forward, with the other party being referred to separate representation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
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