What constitutes a violation of limitations for a limited agent?

In the context of limited agency relationships in Indiana real estate, a violation occurs when an agent steps outside the boundaries set by the limited representation agreement. A limited agent is restricted in the type of advice and information they can provide to either party in a transaction to prevent any conflicts of interest and to ensure that the representation remains neutral.

Informing the buyer that the property is overpriced goes beyond the scope of information that a limited agent is authorized to communicate. This constitutes a violation because it provides a subjective opinion about the property's value, which could be construed as giving an advantage to the buyer over the seller. In a limited agency role, the agent is expected to refrain from making evaluative statements that could influence one party against the interests of the other.

On the other hand, providing general market information, such as trends in property sales or average prices in the area, is permissible as it does not implicate a bias towards either party and is considered neutral. Similarly, explaining the seller's motivations for selling is generally acceptable, as it does not entail a judgement about the property’s value but shares relevant context about the transaction. Disclosing previous offers can also be seen as moving into a territory of providing information that may disadvantage one party or afford an unfair advantage to another