Gary holds an Indiana Broker license and has been working under Managing Broker Helen for three years. Helen unexpectedly passes away, leaving the brokerage without a Managing Broker. Gary wants to continue serving his existing clients and keep the brokerage operating. Under Indiana law, which of the following most accurately describes Gary's options?
Correct Answer
D) Gary must affiliate with a new Managing Broker or obtain his own Managing Broker license to continue practicing legally in Indiana.
Under IC 25-34.1, an affiliated Broker cannot operate independently without a Managing Broker. When a Managing Broker is no longer available (due to death, license revocation, or other reasons), the affiliated Broker must either affiliate with a new Managing Broker at another brokerage or obtain their own Managing Broker license to continue practicing. Gary cannot legally continue operating under his Broker license alone.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
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.
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