Broker Alex works for Prestige Realty. He represents seller Williams in listing a property. Broker Beth, also at Prestige Realty, has a buyer client interested in Williams's property. Prestige Realty's managing broker wants to handle this as a designated agency transaction. Under Indiana law, which statement correctly describes the requirements for this arrangement?
Correct Answer
B) The designated agency arrangement must be disclosed in writing to both the seller and the buyer, with each party's written consent obtained
Under IC 25-34.1-10, Indiana permits designated agency within a firm, but it must be disclosed in writing to all parties and each party must provide written consent to the arrangement. In designated agency, Alex exclusively represents the seller and Beth exclusively represents the buyer, even though both work for the same firm. This written disclosure and consent requirement is a mandatory Indiana-specific provision.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
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