Indiana broker Kevin is working with a buyer who is interested in a property listed by Kevin's own firm. Kevin's managing broker designates Kevin to represent the buyer and another broker in the firm to represent the seller. Under Indiana law, which of the following best describes this arrangement and its disclosure requirements?
Correct Answer
B) This is designated agency, and the firm must disclose this arrangement in writing to both the buyer and the seller
Indiana law under IC 25-34.1-10 expressly permits designated agency, where a managing broker assigns different licensees within the same firm to represent each party in the same transaction. This arrangement must be disclosed in writing to both parties. The Agency Disclosure Form (State Form 46234) is used to communicate this designated agency arrangement, and both parties must be informed and acknowledge the relationship.
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