Agency
A buyer's agent in Indiana who also receives a referral fee from a home inspector they recommended to their buyer client must:
AKeep it confidential
BDisclose the referral fee arrangement to the buyer client as it creates a potential conflict of interest✓ Correct
CShare the fee with the buyer
DObtain IREC approval
Explanation
Receiving a referral fee from a service provider (such as a home inspector) recommended to a client creates a conflict of interest that must be disclosed to the client. Without disclosure, the agent may be violating their fiduciary duties.
Related Indiana Agency Questions
- Under Indiana's agency law, the agent may be held personally liable for:
- Express agency is created by:
- In Indiana, a transaction broker (facilitator) represents:
- Indiana's agency law provides that an agent must avoid:
- Implied agency in Indiana occurs when:
- In Indiana, a broker who represents neither buyer nor seller but assists with the transaction is acting as a:
- A seller's broker who lists a home knowing the seller is withholding material defect information should:
- When a seller's agent learns that the buyer's lender has pre-approved the buyer for significantly more than the offer price, the agent should:
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