How is a valid real estate agency relationship established in Indiana?

A valid real estate agency relationship in Indiana is established through a signed agreement. This written agreement serves as a formal acknowledgment of the relationship between the parties, outlining the representation expectations and obligations. It provides legal clarity and protection for both the agent and the client, ensuring that the terms of service are documented and agreed upon.

Having a signed agreement helps to define the scope of the agency relationship, including the responsibilities of the agent, such as fiduciary duties, and the rights of the client. This requirement aligns with the state's regulations governing real estate practices, which emphasize the importance of formal documentation in establishing agency relationships to prevent misunderstandings and promote ethical behavior within the industry.

Other methods such as verbal agreements or simply meeting in person do not provide the necessary legal framework or protection that a signed agreement does. Additionally, a business license is unrelated to the establishment of an agency relationship; it pertains more to the legality of operating as a business in the state rather than the specifics of the relationship between agents and clients.