Under Indiana's Agency Relationships in Real Estate Transactions Act (IC 25-34.1-10), all of the following statements about the written agency disclosure are correct EXCEPT:
Correct Answer
C) Providing the signed form to the consumer automatically satisfies the requirement to establish a written agency agreement
Option C is the EXCEPT answer because it is false. The written agency disclosure does not satisfy the requirement to establish a written agency agreement. The disclosure form is a separate, mandatory informational document that discloses the licensee's agency status. A written agency agreement — such as a listing agreement or buyer agency agreement — is a distinct contractual document required to formally create the agency relationship. Conflating the two is a common and heavily tested misconception in Indiana.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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