Agency
In Indiana, when a managing broker receives notice that an affiliated broker is engaged in unlicensed activities beyond their scope, the managing broker must:
AWait for IPLA to investigate before taking action
BTake immediate action to correct the situation and potentially report the violation to IPLA✓ Correct
CAllow the affiliated broker to continue until their license renewal
DOnly document the issue internally
Explanation
A managing broker has a supervisory duty and must take prompt corrective action when an affiliated broker engages in conduct that violates license law, including potentially reporting serious violations to IPLA.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
State-Specific Concepts
License Law
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