Key Takeaways
- Indiana agency law is governed by IC 25-34.1-10, requiring written agency agreements and proper disclosure
- Indiana recognizes client relationships (buyer or seller agency) and customer relationships
- The Agency Disclosure Form must be presented at first substantive contact before confidential information is shared
- Indiana allows limited dual agency (limited representation) with informed written consent from both parties
- Licensees must explain agency relationships using the state-required Agency Disclosure Form
Indiana Agency Relationships Overview
Indiana has specific statutory requirements for agency relationships in real estate transactions under IC 25-34.1-10.
Key Indiana Agency Definitions
| Term | Definition |
|---|---|
| Client | Party who has entered into a written brokerage agreement |
| Customer | Party receiving limited services without representation |
| Agency | Fiduciary relationship between broker and client |
| Limited Representation | Indiana's term for dual agency |
| Ministerial Acts | Routine acts without discretion or representation |
Creating Agency Relationships
In Indiana, an agency relationship is created by:
- Written brokerage agreement signed by both parties
- Agreement specifying the type of representation
- Disclosure of compensation terms
- Acknowledgment of duties owed
Exam Tip: A verbal agreement is NOT sufficient to create a client relationship in Indiana. The relationship must be in writing.
Agency Disclosure Form
Indiana requires licensees to provide the Agency Disclosure Form:
When to Provide
| Situation | Timing |
|---|---|
| In-person contact | At first substantive discussion |
| Open house | Before substantive discussion |
| Phone/online inquiry | Before sharing confidential information |
Purpose of the Agency Disclosure Form
The Agency Disclosure Form explains:
- Different types of agency relationships
- Duties owed to clients vs. customers
- How limited representation (dual agency) works
- The importance of written agreements
Types of Agency Relationships
Seller Agency
When a broker represents a seller:
| Duty | Description |
|---|---|
| Loyalty | Put seller's interests first |
| Obedience | Follow lawful instructions |
| Disclosure | Reveal all material information to seller |
| Confidentiality | Protect seller's private information |
| Accounting | Handle funds properly |
| Care | Act competently and diligently |
Buyer Agency
When a broker represents a buyer:
- Same fiduciary duties owed to buyer
- Written buyer representation agreement required
- Must disclose material facts to buyer
- Cannot disclose buyer's confidential information to seller
Customer Status
A customer receives limited services:
| Services Available | Description |
|---|---|
| Providing forms | Standard contracts and documents |
| Scheduling | Appointments and showings |
| Delivering documents | Without advice or negotiation |
| Factual information | Property details without opinion |
Agency Disclosure Requirements
First Substantive Contact
Disclosure must occur at first meaningful contact:
- Discussion of property specifics
- Financial qualification discussions
- Motivation or urgency revealed
- Before any confidential information shared
What Must Be Disclosed
| Requirement | Detail |
|---|---|
| Who broker represents | Seller, buyer, or both |
| Type of relationship | Client or customer |
| Duties owed | Fiduciary or limited |
| Compensation source | Who pays the broker |
Written Confirmation
Before signing a purchase agreement, Indiana requires written confirmation of agency relationships to all parties.
What document must Indiana licensees provide to all prospective clients and customers?
In Indiana, what is required to create a client relationship?