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AgencyAgency_disclosure_form_requirementsHARD

Under Indiana's Agency Relationships in Real Estate Transactions Act (IC 25-34.1-10), all of the following statements about the Agency Disclosure Form 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 Agency Disclosure Form 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.

Answer Options
A
The form must be provided at first substantive contact with a prospective buyer or seller
B
The form must be signed by the consumer and a copy retained by the managing broker or firm
C
Providing the signed form to the consumer automatically satisfies the requirement to establish a written agency agreement
D
The form must identify the specific agency relationship the licensee is offering to the consumer

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Why the Other Options Are Wrong

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Related Topics & Key Terms

Key Terms:

agency_disclosurereverse_questiondisclosure_vs_agreementic_25-34.1-10common_misconception
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