IC 25-34.1-4-1 Responsibility for actions of associated salespersons and broker
salespersons; maintenance of two or more separate offices; notice
Sec. 1. A principal broker is responsible under this article for the
actions of any associated salesperson and broker-salesperson. Any
principal broker who maintains two (2) or more separate offices for
associated licensees shall notify the commission of the name and
address 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 act
only as principal broker; designation of responsible licensed
individual broker
Sec. 2. Except as provided in IC 23-1.5, a partnership broker,
corporate broker, or limited liability company broker may act only as
a principal broker and shall designate to the commission a licensed
individual broker, who is a partner or a corporate representative
satisfying IC 25-34.1-3-4.1(c)(1) or a member-managed limited
liability company member or a manager-managed limited liability
company representative satisfying IC 25-34.1-3-4.1(d)(2), to be
primarily 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 nonresidents
may be principal brokers
Sec. 3. (a) Except as provided in subsection (b), each individual
who is a principal broker or is designated by a partnership,
corporation, or a limited liability company pursuant to section 2 of
this chapter shall be a resident of Indiana.
(b) A nonresident:
(1) individual broker; or
(2) individual designated by a partnership, corporation, or
limited liability company under section 2 of this chapter;
may be a principal broker if all the licensees affiliated with the
broker, partnership, corporation, or limited liability company are not
residents 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 a
salesperson or broker with a principal broker, as provided by this
article, creates an independent contractor relationship unless
otherwise specified by a written contract entered into by the principal
broker 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 or
noninterest bearing) all funds belonging to others that come into
the possession of the principal broker or of any associated
salesperson or broker-salesperson; and
(2) shall clearly identify any account containing those funds as
a trust account. The trust accounts shall contain all earnest
money deposits, funds held for closing escrows, sale proceeds
not yet disbursed, and all other funds belonging to others.
(b) The principal broker shall not use any trust account for the
deposit of any personal funds or other business funds and shall keep
a detailed record of the funds and any interest accrued in each trust
account 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 the
expiration, revocation, or suspension of the principal broker's license,
the commission shall take custody of each trust account and may
appoint a successor trustee to protect and distribute the proceeds of
that 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 partnership
principal broker by death of partner
Sec. 6. (a) In the event of the death of an individual principal
broker or the termination of a partnership principal broker by the
death of a partner, a salesperson formerly associated with that
principal broker may continue to carry out business contracted for
before the death or termination of the principal broker, for a
maximum period of ninety (90) days after the death or termination.
During that period, the salesperson shall maintain a trust account as
provided in section 5 of this chapter. However, until associating with
another principal broker the salesperson may not undertake any new
business.
(b) Upon associating with a new principal broker, the salesperson
may conduct on behalf of the deceased or terminated principal broker
only that business which is necessary to complete obligations
assumed while associated with that principal broker. All other acts
performed by the salesperson shall be performed in association with
the new principal broker.
(c) Each broker-salesperson formerly associated with the deceased
or terminated principal broker becomes, upon the death or
termination of the principal broker, a principal broker until the
broker elects to act as a broker-salesperson for another principal
broker.
(d) This section applies only to matters of licensing and
responsibility under this article and does not affect the transfer of the
deceased principal broker's property interests as provided by IC 29
and other laws of succession. As added by Acts 1979, P.L.248, SEC.1.
IC 25-34.1-4-1 Responsibility for actions of associated salespersons and broker
salespersons; maintenance of two or more separate offices; notice
Sec. 1. A principal broker is responsible under this article for the
actions of any associated salesperson and broker-salesperson. Any
principal broker who maintains two (2) or more separate offices for
associated licensees shall notify the commission of the name and
address 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 act
only as principal broker; designation of responsible licensed
individual broker
Sec. 2. Except as provided in IC 23-1.5, a partnership broker,
corporate broker, or limited liability company broker may act only as
a principal broker and shall designate to the commission a licensed
individual broker, who is a partner or a corporate representative
satisfying IC 25-34.1-3-4.1(c)(1) or a member-managed limited
liability company member or a manager-managed limited liability
company representative satisfying IC 25-34.1-3-4.1(d)(2), to be
primarily 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 nonresidents
may be principal brokers
Sec. 3. (a) Except as provided in subsection (b), each individual
who is a principal broker or is designated by a partnership,
corporation, or a limited liability company pursuant to section 2 of
this chapter shall be a resident of Indiana.
(b) A nonresident:
(1) individual broker; or
(2) individual designated by a partnership, corporation, or
limited liability company under section 2 of this chapter;
may be a principal broker if all the licensees affiliated with the
broker, partnership, corporation, or limited liability company are not
residents 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 a
salesperson or broker with a principal broker, as provided by this
article, creates an independent contractor relationship unless
otherwise specified by a written contract entered into by the principal
broker 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 or
noninterest bearing) all funds belonging to others that come into
the possession of the principal broker or of any associated
salesperson or broker-salesperson; and
(2) shall clearly identify any account containing those funds as
a trust account. The trust accounts shall contain all earnest
money deposits, funds held for closing escrows, sale proceeds
not yet disbursed, and all other funds belonging to others.
(b) The principal broker shall not use any trust account for the
deposit of any personal funds or other business funds and shall keep
a detailed record of the funds and any interest accrued in each trust
account 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 the
expiration, revocation, or suspension of the principal broker's license,
the commission shall take custody of each trust account and may
appoint a successor trustee to protect and distribute the proceeds of
that 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 partnership
principal broker by death of partner
Sec. 6. (a) In the event of the death of an individual principal
broker or the termination of a partnership principal broker by the
death of a partner, a salesperson formerly associated with that
principal broker may continue to carry out business contracted for
before the death or termination of the principal broker, for a
maximum period of ninety (90) days after the death or termination.
During that period, the salesperson shall maintain a trust account as
provided in section 5 of this chapter. However, until associating with
another principal broker the salesperson may not undertake any new
business.
(b) Upon associating with a new principal broker, the salesperson
may conduct on behalf of the deceased or terminated principal broker
only that business which is necessary to complete obligations
assumed while associated with that principal broker. All other acts
performed by the salesperson shall be performed in association with
the new principal broker.
(c) Each broker-salesperson formerly associated with the deceased
or terminated principal broker becomes, upon the death or
termination of the principal broker, a principal broker until the
broker elects to act as a broker-salesperson for another principal
broker.
(d) This section applies only to matters of licensing and
responsibility under this article and does not affect the transfer of the
deceased principal broker's property interests as provided by IC 29
and other laws of succession. As added by Acts 1979, P.L.248, SEC.1.
IC 25-34.1-4-1 Responsibility for actions of associated salespersons and broker
salespersons; maintenance of two or more separate offices; notice
Sec. 1. A principal broker is responsible under this article for the
actions of any associated salesperson and broker-salesperson. Any
principal broker who maintains two (2) or more separate offices for
associated licensees shall notify the commission of the name and
address 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 act
only as principal broker; designation of responsible licensed
individual broker
Sec. 2. Except as provided in IC 23-1.5, a partnership broker,
corporate broker, or limited liability company broker may act only as
a principal broker and shall designate to the commission a licensed
individual broker, who is a partner or a corporate representative
satisfying IC 25-34.1-3-4.1(c)(1) or a member-managed limited
liability company member or a manager-managed limited liability
company representative satisfying IC 25-34.1-3-4.1(d)(2), to be
primarily 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 nonresidents
may be principal brokers
Sec. 3. (a) Except as provided in subsection (b), each individual
who is a principal broker or is designated by a partnership,
corporation, or a limited liability company pursuant to section 2 of
this chapter shall be a resident of Indiana.
(b) A nonresident:
(1) individual broker; or
(2) individual designated by a partnership, corporation, or
limited liability company under section 2 of this chapter;
may be a principal broker if all the licensees affiliated with the
broker, partnership, corporation, or limited liability company are not
residents 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 a
salesperson or broker with a principal broker, as provided by this
article, creates an independent contractor relationship unless
otherwise specified by a written contract entered into by the principal
broker 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 or
noninterest bearing) all funds belonging to others that come into
the possession of the principal broker or of any associated
salesperson or broker-salesperson; and
(2) shall clearly identify any account containing those funds as
a trust account. The trust accounts shall contain all earnest
money deposits, funds held for closing escrows, sale proceeds
not yet disbursed, and all other funds belonging to others.
(b) The principal broker shall not use any trust account for the
deposit of any personal funds or other business funds and shall keep
a detailed record of the funds and any interest accrued in each trust
account 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 the
expiration, revocation, or suspension of the principal broker's license,
the commission shall take custody of each trust account and may
appoint a successor trustee to protect and distribute the proceeds of
that 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 partnership
principal broker by death of partner
Sec. 6. (a) In the event of the death of an individual principal
broker or the termination of a partnership principal broker by the
death of a partner, a salesperson formerly associated with that
principal broker may continue to carry out business contracted for
before the death or termination of the principal broker, for a
maximum period of ninety (90) days after the death or termination.
During that period, the salesperson shall maintain a trust account as
provided in section 5 of this chapter. However, until associating with
another principal broker the salesperson may not undertake any new
business.
(b) Upon associating with a new principal broker, the salesperson
may conduct on behalf of the deceased or terminated principal broker
only that business which is necessary to complete obligations
assumed while associated with that principal broker. All other acts
performed by the salesperson shall be performed in association with
the new principal broker.
(c) Each broker-salesperson formerly associated with the deceased
or terminated principal broker becomes, upon the death or
termination of the principal broker, a principal broker until the
broker elects to act as a broker-salesperson for another principal
broker.
(d) This section applies only to matters of licensing and
responsibility under this article and does not affect the transfer of the
deceased principal broker's property interests as provided by IC 29
and other laws of succession. As added by Acts 1979, P.L.248, SEC.1.
