Is it legal for a real estate agent to represent both parties in a transaction without prior disclosure?

In Indiana, real estate agents must adhere to strict ethical guidelines and legal statutes regarding representation in transactions. It is considered a conflict of interest for an agent to represent both the buyer and the seller without prior disclosure and consent from both parties. This situation, known as dual agency, requires that the agent fully disclose their intention to represent both sides, ensuring that both parties are aware and agreeable to the arrangement.

If an agent fails to disclose this dual representation, it undermines the trust and fiduciary duty established between the agent and their clients, leading to potential legal repercussions. Therefore, the legal framework clearly mandates that agents cannot represent both parties in a transaction without disclosure and mutual agreement, making the assertion that it is illegal and viewed as a conflict of interest correct.