Before you read
Test yourself first: 5 questions
Question 1 of 5
In Indiana, when a single brokerage represents both the buyer and the seller in the same transaction, this is known as:
Answer: A. Indiana permits limited agency (dual agency) only with the informed written consent of both the buyer and seller, because the broker cannot fully advocate for one party against the other.
Question 2 of 5
An Indiana managing broker has one client wanting to buy a specific listed property and another client of the same firm who is the seller of that property. With proper written, informed consent from both parties, the firm may act as:
Answer: B. When one firm represents both the buyer and the seller in the same transaction, Indiana permits the firm to act as a limited agent (a form of dual agency) only with the written, informed consent of both parties. As a limited agent, the firm cannot fully advocate for either side and must protect each party's confidential information. Undisclosed dual agency is never permitted.
Question 3 of 5
In Indiana, what is required before a single brokerage firm may act as a dual agent representing both the buyer and the seller in the same transaction?
Answer: C. Indiana permits dual agency only with the informed written consent of all parties to the transaction. Both the buyer and the seller must knowingly agree in writing because a dual agent's ability to advocate fully for either side is limited.
Question 4 of 5
In Indiana, a licensee who facilitates a transaction without representing either party as an agent is commonly acting as a:
Answer: C. Indiana recognizes that a licensee may work with parties without creating an agency relationship, acting in a facilitator/limited capacity rather than as an advocate for either party.
Question 5 of 5
In Indiana, an agency relationship between a broker and a seller is MOST properly created by:
Answer: A. An agency (representation) relationship in Indiana is created by agreement between the broker and the principal, typically a written agency agreement such as a listing agreement that authorizes the broker to act on the principal's behalf. Merely showing a property, placing an unauthorized sign, or a third party's assumption does not establish a true agency relationship.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Indiana permits limited agency (a form of dual agency) when one firm represents both buyer and seller in the same transaction, but only with the informed written consent of both clients. Licensees who do not represent a party act as agents only for their own client and must treat the other party honestly and fairly.
Indiana Agency Model: Written Agreements and Limited Agency: FAQs
Is Indiana Agency Model: Written Agreements and Limited Agency on the real estate exam?
Yes. State License Law is a scored domain on the Indiana real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Indiana test this differently?
Indiana applies its own license law on top of the national portion. This page covers the Indiana rules specifically, which is what the state section of your exam tests.
