CHAPTER 4. PRINCIPAL BROKERS
IC 25-34.1-4
Chapter 4. Principal Brokers
IC 25-34.1-4-1
Responsibility for actions of associated salespersons and brokersalespersons; maintenance of two or more separate offices; notice
Sec. 1. A principal broker is responsible under this article for theactions of any associated salesperson and broker-salesperson. Anyprincipal broker who maintains two (2) or more separate offices forassociated licensees shall notify the commission of the name andaddress of the broker who manages each office.
As added by Acts 1979, P.L.248, SEC.1.
IC 25-34.1-4-2
Partnership, corporate, or limited liability company broker to actonly as principal broker; designation of responsible licensedindividual broker
Sec. 2. Except as provided in IC 23-1.5, a partnership broker,corporate broker, or limited liability company broker may act only asa principal broker and shall designate to the commission a licensedindividual broker, who is a partner or a corporate representativesatisfying IC 25-34.1-3-4.1(c)(1) or a member-managed limitedliability company member or a manager-managed limited liabilitycompany representative satisfying IC 25-34.1-3-4.1(d)(2), to beprimarily responsible to the commission for its actions.
As added by Acts 1979, P.L.248, SEC.1. Amended by P.L.128-1994,SEC.4; P.L.229-1995, SEC.7.
IC 25-34.1-4-3
Residency requirement for principal brokers; certain nonresidentsmay be principal brokers
Sec. 3. (a) Except as provided in subsection (b), each individualwho is a principal broker or is designated by a partnership,corporation, or a limited liability company pursuant to section 2 ofthis chapter shall be a resident of Indiana.
(b) A nonresident:
(1) individual broker; or
(2) individual designated by a partnership, corporation, orlimited liability company under section 2 of this chapter;
may be a principal broker if all the licensees affiliated with thebroker, partnership, corporation, or limited liability company are notresidents of Indiana.
As added by Acts 1979, P.L.248, SEC.1. Amended by P.L.128-1994,SEC.5; P.L.64-2004, SEC.21.
IC 25-34.1-4-4
Independent contractor relationship
Sec. 4. Notwithstanding IC 23-1.5, the association of asalesperson or broker with a principal broker, as provided by thisarticle, creates an independent contractor relationship unless
otherwise specified by a written contract entered into by the principalbroker and the associated salesperson or broker.
As added by Acts 1979, P.L.248, SEC.1. Amended by P.L.229-1995,SEC.8.
IC 25-34.1-4-5
Trust accounts
Sec. 5. (a) Each principal broker:
(1) shall keep in one (1) or more trust accounts (interest ornoninterest bearing) all funds belonging to others that come intothe possession of the principal broker or of any associatedsalesperson or broker-salesperson; and
(2) shall clearly identify any account containing those funds asa trust account. The trust accounts shall contain all earnestmoney deposits, funds held for closing escrows, sale proceedsnot yet disbursed, and all other funds belonging to others.
(b) The principal broker shall not use any trust account for thedeposit of any personal funds or other business funds and shall keepa detailed record of the funds and any interest accrued in each trustaccount that identifies the amount of funds held for each beneficiary.Any interest earned shall be held for the beneficiary.
(c) Upon the death or termination of a principal broker or theexpiration, revocation, or suspension of the principal broker's license,the commission shall take custody of each trust account and mayappoint a successor trustee to protect and distribute the proceeds ofthat account.
As added by Acts 1979, P.L.248, SEC.1. Amended by P.L.255-1987,SEC.5; P.L.114-2010, SEC.22.
IC 25-34.1-4-6
Death of individual principal broker or termination of partnershipprincipal broker by death of partner
Sec. 6. (a) In the event of the death of an individual principalbroker or the termination of a partnership principal broker by thedeath of a partner, a salesperson formerly associated with thatprincipal broker may continue to carry out business contracted forbefore the death or termination of the principal broker, for amaximum period of ninety (90) days after the death or termination.During that period, the salesperson shall maintain a trust account asprovided in section 5 of this chapter. However, until associating withanother principal broker the salesperson may not undertake any newbusiness.
(b) Upon associating with a new principal broker, the salespersonmay conduct on behalf of the deceased or terminated principal brokeronly that business which is necessary to complete obligationsassumed while associated with that principal broker. All other actsperformed by the salesperson shall be performed in association withthe new principal broker.
(c) Each broker-salesperson formerly associated with the deceasedor terminated principal broker becomes, upon the death or
termination of the principal broker, a principal broker until thebroker elects to act as a broker-salesperson for another principalbroker.
(d) This section applies only to matters of licensing andresponsibility under this article and does not affect the transfer of thedeceased principal broker's property interests as provided by IC 29and other laws of succession.
As added by Acts 1979, P.L.248, SEC.1.