Indiana state test study guide

Post-licensing education in Indiana may be completed by new brokers as one large course, or a series of ______ courses.

5

The Indiana Real Estate Commission may impose an emergency suspension of a broker's license, which lasts for how long?

90 days

Indiana listing agent Stella is completing one of her legal duties to her client, Lorna, when she provides Lorna with ______.

A closing statement itemizing all funds she handled for Lorna as part of the transaction.

An Indiana listing agreement must include___.

An agreement expiration date

Ed is an Indiana broker associated with managing broker Petra. What's true about the CE requirements Ed and Petra must meet?

Ed and Petra must each take 12 hours of CE each year between July 1 and June 30

If the Indiana Real Estate Commission notifies a broker that it will be auditing the brokerage escrow account records, what's NOT true about the broker's responsibility?

Escrow account records, including bank statements, up to seven years old must be available if requested by the commission.

Ryan recently landed an inside sales job selling cemetery plots. In Indiana, Ryan is ______.

Exempt from real estate licensing requirements

The Indiana Code makes it a real estate licensee's duty to ______ when representing a seller or landlord in a transaction.

Exercise reasonable care and skill

Jared is working with buyer clients who wish to make an offer on a property they've just seen, but they want to make a ridiculously low offer, and he's afraid they will offend the seller. What should he do?

Explain his concern and encourage them to offer more, but be willing to write the offer if they desire.

When working with buyer clients who want to make a lowball offer that you know won't be accepted, what should you do?

Explain your concern and encourage them to offer more, but be willing to write the offer if they desire.

Indiana real estate law also regulates the licensing of real estate appraisers. It requires appraisers, and real estate brokers conducting appraisals, to ________.

Follow USPAP

What is true about a new Indiana broker who leaves a broker company and files an application to be unassigned?

The licensee can't practice real estate until reassigned.

Prudence is applying for an Indiana broker's license but hasn't yet found a broker with whom she'll affiliate. With what status will her license be issued?

Unassigned

Dawn has accepted an offer on her Indiana home from Ron. A week after accepting Ron's offer, Dawn's dog destroys some of the woodwork in the living room. Dawn's agent delivers an amended disclosure to Ron's agent, noting the new damage. Ron now has a right to terminate the contract in writing, but he must do it ________.

Within two business days

Indiana licensee Maggie offered prospective buyers a $500 gift certificate to a local home improvement store if they made an accepted offer. She made sure her seller client and everyone else involved in the transaction was aware of the gift. Is Maggie's action legal?

Yes, because Indiana allows financial incentives that are fully disclosed to all parties in the transaction.

Indiana affiliated broker Larry is in trouble with the commission for a possible license law violation. Larry works from one of Atlas Realty's seven branch offices. Who bears responsibility for Larry's actions and may be disciplined by the commission along with Larry?

Madge, the managing broker at Atlas Realty

Managing broker Petra is selecting courses to complete her yearly CE requirement. Which of these courses is part of her CE requirement as a managing broker but is not required of her associated broker Ed?

Managing risk in your real estate business

Buyer Chris has asked Indiana licensee Kelly to help him make an offer on a property, but he doesn't want her to act as his agent. They enter into a written agreement stating that she's not his agent. What statutory duties does Kelly owe Chris?

Providing assistance in negotiating, completing forms, and presenting his offers.

Rosie, an Indiana broker, tells her buyer client, "That property is a steal at that price. I can guarantee you'll make a profit when you resell." Has Rosie violated Indiana's professional standards of practice?

Yes, it's unlawful for a licensee to guarantee future profits buyers may realize when they re-sell a property they're considering purchasing.

You're representing Chris, who's selling her two-bedroom home. A few days before closing, a water pipe bursts, causing some minor water damage. What's Chris's obligation related to this change in property condition?

She must disclose the issue to the buyer no later than at closing

Indiana brokers are required to provide their clients with a(n) ______ at closing.

Statement itemizing all client funds the broker handled

Which of the following statements about sub-agency in Indiana is true?

Sub-agency isn't allowed in Indiana

You sent in your renewal application and renewal fee by the deadline, so you're surprised to receive a notice from the real estate commission that you haven't met all your continuing education requirements. What will happen?

You'll have six months to complete your CE requirement. The commission issues you a conditional license until you do so and will then charge you a penalty of up to $1,000 to renew your license.

In Indiana, which of the following would you need to disclose about a listed property?

Your stepfather is the property owner.

Indiana offers ____ levels of appraiser qualification.

3

License renewal in Indiana occurs every ______ years.

3

After you sign a listing agreement with an Indiana seller, you have ______ to provide the seller with a copy of the signed document.

3 business days

Which of these situations on a property is NOT considered a psychological stigma in Indiana and would require seller disclosure?

A test revealed high levels of radon

When you're representing a seller client, which of these actions does the Indiana Code require you to take?

Account for all money and property received from the client.

Indiana licensees should inform the commission immediately when changing their names or ______.

Addresses

Which of these statements about licensee compensation in Indiana is true?

All licensee compensation from real estate activities must come from the licensee's managing broker.

Indiana licensee Fred represents Sharon, a seller. To whom is Fred required to disclose the fact that he represents Sharon?

All parties in the transaction

Georgia has been practicing real estate for 15 years as a broker at Bar None Real Estate. She decides she'd rather open her own sole proprietorship and practice independently. What must she do?

Become licensed as a managing broker

What must an Indiana broker do in order to legally offer gifts or prizes to real estate sellers or buyers to encourage a listing or a purchase?

Disclose the offer and payment of the incentive to all parties in the transaction.

If Steve, an Indiana real estate broker, performs an appraisal for a fee, which of these actions must he take?

He must follow USPAP in his appraisal and report.

Why are Indiana licensees required to disclose personal interest in a property they are selling, leasing, or considering purchasing?

Holding a license is considered an unfair advantage in a real estate transaction, so others must be made aware of the fact.

You've just received an offer from a potential buyer for a property you listed. When should you present the offer to your client?

Immediately

Sam is representing buyer Dean. Dean's friend Jasmin also needs to sell her house, so she enters into an agency relationship with Sam's managing broker, Cas. What type of agency relationship is this?

In-house agency

Your seller client wants to accept an offer for $282,000. If it were up to you, you'd refuse and wait for a higher offer, either from this buyer or a new one. What do you do?

Notify the buyer's agent pronto that the offer was accepted, deliver copies of the signed agreement ASAP, and submit the earnest money check to your broker immediately.

An unrepresented buyer would like to make an offer on an Indiana property you've listed. What will you need to do in order to represent both the seller and the buyer in this transaction?

Obtain both parties' written informed consent to limited agency.

The Indiana Real Estate Commission may order what type of examination if the circumstances of an investigation deem it appropriate?

Physical or mental exam

Reginald has just written a check out of the brokerage escrow account to pay a home inspector he hired on behalf of his buyer client. What's true about this disbursement?

Reginald must record the check number, date, name of the payee, purpose of the disbursement, and the amount paid in the escrow account journal.

Indiana's professional standards of practice prohibit licensees from taking which of these actions?

Representing more than one Indiana brokerage

Travis has been helping his friends list and sell their homes, for which they've been paying him a flat $2,000 for his assistance. Travis doesn't hold a real estate license, so what might happen to him?

The Indiana Office of the Attorney General can issue a cease-and-desist order forcing Travis to stop any real estate activities

When managing a broker Donald died suddenly, who took over the brokerage trust accounts

The Indiana Real Estate Commission

Who is expected to sign the Seller's Residential Real Estate Sales Disclosure in Indiana?

The seller and the buyer

The commission has determined that Indiana licensee Boyd owes restitution to a seller he represented. Boyd's unable to come up with the amount of the judgment—$15,000—and can't pay the seller. What's true about this situation?

The seller can apply for payment from the Indiana Recovery Fund, which will cover up to $20,000 per judgment.

Under which circumstance does the buyer in a residential transaction have the right to terminate the purchase contract and get the earnest money back?

The seller didn't provide a property condition disclosure prior to accepting the buyer's offer

When the sale of her home falls through, seller Rhea is furious. She believes just about every professional involved is guilty of fraudulent behavior. She files a separate complaint against each party. Which of these individuals will the Indiana Real Estate Commission investigate based on Rhea's complaint?

Ursula, who helper her friend Rhea negotiate the sale with the buyer without ever mentioning that her license is expired

Which of the following questions from a client may a licensee answer without violating the Indiana professional standards of practice?

What are the property taxes for this home