Indiana Agency and Limited Agency
Indiana's agency statute defines the duties licensees owe clients and the rules for representing more than one party. This chapter reviews agency duties and Indiana's limited agency provisions.
Agency Duties to Clients
An Indiana licensee representing a client owes statutory duties including loyalty, confidentiality, obedience to lawful instructions, accounting for funds, reasonable care and skill, and disclosure of adverse material facts about the property that the licensee actually knows. These duties guide how the licensee advocates for the client.
Limited Agency (Representing Both Parties)
Indiana permits limited agency, in which a licensee or company represents both the buyer and seller in the same transaction, only with the written consent of both parties after disclosure. In limited agency the licensee's ability to advocate fully for either side is restricted, and confidential information of each party is protected.
Agency Disclosure
Indiana licensees must disclose their agency status to consumers so buyers and sellers understand whom the licensee represents. Proper, timely disclosure prevents undisclosed conflicts, and failing to disclose or misrepresenting the relationship can lead to Commission discipline.