Indiana broker Rachel is a buyer's agent representing David in purchasing a home. At the first showing, Rachel provides David with the Indiana written agency disclosure, which David signs. Later, the transaction involves a seller who is represented by Broker Paul. Paul never provided his seller client with an written agency disclosure. Under Indiana law, what is the consequence of Paul's failure?
Correct Answer
A) Paul may face disciplinary action by the Indiana Real Estate Commission, including possible license suspension
Under IC 25-34.1-10 and IC 25-34.1-4 (disciplinary provisions), a licensee's failure to provide the required written agency disclosure is a violation of Indiana real estate license law. The Indiana Real Estate Commission has authority to impose disciplinary sanctions, including fines, license suspension, or revocation, on a licensee who fails to comply with mandatory disclosure requirements. The violation is Paul's individual professional responsibility.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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