Broker Michael is a licensed Indiana broker who also holds a real estate license in Ohio, where the entry-level license is called a 'salesperson.' Michael is working on an Indiana transaction and tells his client that he is a 'salesperson' acting as a buyer's agent. He provides the written agency disclosure listing his role as 'salesperson.' Which of the following is true under Indiana law?
Correct Answer
B) Michael's disclosure is defective because Indiana does not have a salesperson license category; his correct title is 'broker'
Indiana eliminated the salesperson license category and uses a two-tier system: Broker (entry-level) and Managing Broker (supervising level). Under IC 25-34.1, there is no 'salesperson' license in Indiana. Michael's written agency disclosure is defective because he has identified himself with a license category that does not exist in Indiana. He must correctly identify himself as a 'broker' on all Indiana disclosures and documents. Using an incorrect license title on the mandatory disclosure form is a compliance violation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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