Which Agency Relationships Are Prohibited by Indiana Law?

Indiana law prohibits two real estate agency relationships outright: subagency and any agency relationship that has not been disclosed in writing to all parties. A third arrangement, limited agency (where one licensee represents both the buyer and the seller in the same deal), is permitted only with the specific written consent of everyone involved. These rules live in Title 25, Article 34.1, Chapter 10 of the Indiana Code, and an agent who ignores them can be fined up to $1,000 per violation and lose their license.

Subagency Is Banned Outright

Indiana is unusually clear on this: a licensee cannot act as a subagent, and cannot offer subagency through a multiple listing service or any other channel.¹ The statute defines a subagent as a broker hired to perform brokerage services on behalf of another broker.²

The ban addresses a real-world confusion. Under old subagency practice, a cooperating agent walking a buyer through showings could technically owe their legal loyalty to the seller through the listing broker, even though the buyer believed the agent was on their side. Indiana removed that trap. If you are working with an agent in Indiana, that agent represents either you or the other party, and which it is must be put in writing.

Undisclosed Agency Is Prohibited

Before you share anything confidential with a real estate agent in Indiana, the agent must give you a written disclosure of the brokerage’s office policy on agency relationships. That policy has to spell out which types of agency the brokerage permits and whether it allows limited agency.³ An agent who takes in your motivation, your budget, or your bottom line before handing over that disclosure has already broken the statute.

Managing brokers are responsible for writing and enforcing the office policy, and every licensee in the firm has to follow it. The entire Chapter 10 framework is built on the principle that every party to a transaction should know, in writing, who represents whom.⁴ Hidden or undisclosed dual representation is one of the fastest routes to discipline.

Limited Agency: Allowed Only With Written Consent

Indiana does not use the phrase “dual agency.” Its statutes call it “limited agency,” meaning one licensee representing both buyer and seller, or both landlord and tenant, in the same transaction. A licensee may act as a limited agent only with the written consent of every party involved.⁵

The consent document itself has to contain specific pieces. It must describe the transactions in which the licensee will serve as a limited agent, state that the agent represents parties whose interests may be adverse, confirm that each party’s consent is voluntary, and make clear that no party is required to agree to limited agency at all.⁵

Once in that role, the agent is tightly restricted on what they can say. Without separate written permission from the affected party, a limited agent cannot reveal:

Whether a buyer would pay more than the offer price, or whether a seller would accept less than the listing price.
Why a party wants to buy, sell, or lease the property.
Any other confidential information that could give one side a contractual advantage over the other.

General property data available through the MLS or other public sources can still be shared. The statute also provides that no cause of action arises against a licensee who discloses or withholds information in compliance with these rules, which shields agents who follow the law from being sued by either side.⁵

Two Agents, Same Brokerage: In-House Representation

When two different licensees in the same brokerage represent opposite sides of a deal, Indiana calls it an “in-house agency relationship.” Each licensee represents only their own client, to the exclusion of every other licensee in the firm.⁶ The managing broker is not treated as representing either party unless they have personally entered into an agency relationship with a client.

The legal point that matters most for consumers: knowledge is not shared across the brokerage. There is no imputation of agency, knowledge, or information between clients, the brokerage, the managing broker, and individual licensees. If an agent in the office knows a confidential fact about the seller, that knowledge does not transfer to the agent sitting at the next desk who happens to represent the buyer. Prior-transaction records held by the brokerage also cannot be imputed to a licensee unless that licensee had actual personal knowledge of the adverse facts.⁶

The brokerage, the managing broker, and every affiliated licensee must still take reasonable steps to protect confidential information a client gives to that client’s in-house agent.

What Agents Risk for Breaking These Rules

The Indiana Real Estate Commission can impose any of the following sanctions, individually or stacked together, for a single violation:⁷

Permanent revocation of the real estate license.
Suspension of the license for a set period.
Censure or formal reprimand placed in the licensee’s record.
Probation, with conditions such as restricted practice areas, additional education, or community service.
A civil penalty of up to $1,000 per violation, with the Commission required to consider the practitioner’s ability to pay.
Restitution paid directly to the consumer harmed.

If an agent fails to pay a civil penalty on time, the Commission can suspend their license without any additional hearing. Suspension cannot be imposed solely because the agent is unable to pay.⁷

Filing a Complaint Against an Agent

Complaints about Indiana real estate licensees go to the Attorney General’s Consumer Protection Division, specifically its Licensing Enforcement section. You can submit the LE/HPU Complaint Form online or by mail.⁸

You will need the licensee’s name, license number, mailing address, and whatever documentation you have. License numbers can be looked up through Indiana’s online verification system. Investigations can take up to 12 months depending on the allegations, and all complaints and related documents are confidential under Indiana law.⁸

One boundary to understand before you file: Licensing Enforcement can act only against the agent’s professional license. It cannot bring criminal charges or recover monetary damages for you. If you want financial compensation beyond any restitution the Commission orders, you would need to pursue a civil case through a private attorney.⁸

1
Indiana General Assembly. Indiana Code 25-34.1-10-17 – Subagency Prohibited
2
Indiana General Assembly. Indiana Code 25-34.1-10-9 – Subagent
3
Justia. Indiana Code Title 25 Article 34.1 Chapter 10 – Real Estate Agency Relationships
4
Justia. Indiana Code Title 25 Article 34.1 Chapter 10 – Real Estate Agency Relationships
5
Indiana General Assembly. Indiana Code 25-34.1-10-12 – Licensee Acting as Limited Agent
6
Indiana General Assembly. Indiana Code 25-34.1-10-12.5 – Representations by Licensees
7
Indiana General Assembly. Indiana Code 25-1-11-12 – Sanctions for Violations
8
Indiana Attorney General. Consumer Protection Division – Licensing Complaint and Enforcement