A licensed Indiana broker named Sandra is representing a seller in Fishers. She receives an offer from an unrepresented buyer. Sandra presents the offer to her seller, who makes a counteroffer. Sandra delivers the counteroffer to the buyer, who asks Sandra to explain what each term means and whether it is a good deal. Under Indiana's agency disclosure requirements, what is Sandra's proper course of action?
Correct Answer
B) Sandra should provide the buyer with general factual information about the terms but must clarify she represents the seller and cannot advise the buyer on whether to accept
Under IC 25-34.1-10, Indiana requires licensees to provide the written agency disclosure (the written agency disclosure) at first substantive contact, which Sandra should have already done. As the seller's agent, Sandra owes fiduciary duties to the seller, not the buyer. She may provide the unrepresented buyer with factual information about the transaction (e.g., explaining what a contingency clause means factually) but must not provide advice, opinions, or recommendations that would serve the buyer's interests at the expense of the seller. She must clearly communicate her role as the seller's representative.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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