According to Indiana law, what must a licensee do when making decisions that may affect their client?

A licensee in Indiana is obligated to act in the best interest of their client as part of their fiduciary duty. This principle is fundamental to the role of a real estate broker or agent, as it establishes a trust-based relationship between the client and the licensee. The duty to act in the client's best interest means that the licensee must prioritize the client’s needs and preferences when making decisions, ensuring that the client's interests are at the forefront of any actions taken during the transaction process.

This obligation encompasses various aspects, such as providing accurate information, advocating for the client's preferences in negotiations, and ensuring that the client is fully informed to make suitable decisions regarding their real estate transactions. In essence, it requires the licensee to serve the client with loyalty and to refrain from self-serving decisions or actions that could potentially harm the client's interests.

The other options presented do not align with the ethical and legal expectations of a licensee in Indiana. Making decisions based on personal interests runs counter to the duty of loyalty owed to clients. Consulting with a managing broker might be part of operational practices, but it doesn't negate the foundational requirement to put the client's interests first. Making decisions solely based on market trends may offer some valuable insights; however, it still requires context and