Key Takeaways
- Limited representation in Indiana occurs when one broker represents both buyer and seller in the same transaction
- Indiana permits limited representation only with written informed consent from both parties
- A limited representative owes limited fiduciary duties and must remain neutral
- Limited representatives cannot advocate for one party over the other
- Brokers must have written office policies regarding limited representation
Limited Representation (Dual Agency) in Indiana
Limited representation (Indiana's term for dual agency) occurs when a single broker or brokerage represents both the buyer and seller in the same transaction.
When Limited Representation Occurs
Limited representation happens when:
- Same affiliated broker represents both parties
- Different affiliated brokers in the same brokerage represent different parties
- Broker acts for both buyer and seller
Requirements for Limited Representation
Indiana permits limited representation with these requirements:
Written Consent
| Requirement | Detail |
|---|---|
| Timing | Before acting as limited representative |
| Form | Written consent from BOTH parties |
| Disclosure | Explain limitations of dual agency |
| Understanding | Parties must understand reduced representation |
Disclosure Requirements
Before limited representation begins, disclose:
- The fact that dual agency will exist
- The limitations on advocacy
- What information cannot be shared
- The right to refuse dual agency
Limited Representative Duties
What a Limited Representative MUST Do
| Duty | Description |
|---|---|
| Treat both fairly | No preference to either party |
| Disclose material facts | Known property condition issues |
| Account for funds | Handle all money properly |
| Exercise care | Act competently for both |
| Keep confidences | Protect each party's private information |
What a Limited Representative CANNOT Do
| Prohibited Action | Reason |
|---|---|
| Advocate for one party | Must remain neutral |
| Disclose motivation | Either party's urgency to buy/sell |
| Reveal price flexibility | Lowest seller will accept, highest buyer will pay |
| Share financial details | Beyond what party authorizes |
| Recommend terms | Cannot advise on price or conditions |
Confidential Information in Limited Representation
What Cannot Be Disclosed
Without written permission, a limited representative cannot reveal:
| To Buyer | To Seller |
|---|---|
| Seller's lowest acceptable price | Buyer's highest offering price |
| Seller's motivation to sell | Buyer's motivation to buy |
| Why seller is selling | Buyer's financial capabilities beyond preapproval |
| Seller's willingness to finance | How much buyer can really afford |
What MUST Be Disclosed
Even in limited representation, the agent must disclose:
- Material property defects
- Environmental hazards
- Legal issues affecting title
- Facts required by law
In-Company Transactions
When different agents in the same brokerage represent different parties:
Company Policy Options
| Policy | Result |
|---|---|
| Limited representation permitted | Both agents must get consent |
| Designated agency | Each agent represents one party exclusively |
| No dual agency | One party must find different representation |
Designated Agency Alternative
Some Indiana brokerages use designated agency:
- Specific agents assigned to each party
- Each agent owes full fiduciary duties
- Reduces conflicts of dual agency
- Must be disclosed in brokerage policies
Refusing Limited Representation
Parties have the right to:
- Refuse limited representation
- Seek independent representation
- Work as a customer (limited services)
- Choose another brokerage
Important: If a party refuses limited representation, the broker must determine who will be represented and who will be a customer, or arrange for independent representation.
What is required for limited representation (dual agency) to be permitted in Indiana?
In Indiana limited representation, what information can a dual agent NOT disclose without permission?