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Under Indiana's Agency Relationships in Real Estate Transactions Act, which of the following statements correctly describes the relationship between the Indiana Agency Disclosure Form and the establishment of an actual agency relationship?

Correct Answer

D) The Agency Disclosure Form informs parties of the licensee's agency status but does not by itself create an agency relationship

Under IC 25-34.1-10, the Agency Disclosure Form (State Form 46234) is a disclosure document — it informs parties about the licensee's agency status and the nature of the relationship being offered. It does not by itself create a binding agency relationship. Agency is established through a separate agreement (such as a listing agreement or buyer agency agreement). The disclosure form is a transparency tool, not a contract of representation.

Answer Options
A
The Agency Disclosure Form replaces the need for a written buyer agency or listing agreement in Indiana transactions
B
An agency relationship in Indiana can only be established after the Agency Disclosure Form has been signed by both parties
C
Signing the Agency Disclosure Form automatically creates a binding agency relationship between the licensee and the consumer
D
The Agency Disclosure Form informs parties of the licensee's agency status but does not by itself create an agency relationship

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Key Terms:

agency_disclosureagency_creationstate_form_46234disclosure_vs_agreement
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