Real estate Exam Indiana
New Indiana brokers are required to complete ______ hours of post-licensing education within the first two years of the initial licensing period.
30
Non-residents filing broker applications in Indiana must affiliate with ______.
An Indiana broker company
Andy has a managing broker-level license, but he's supervised by Charlene at Tip Top Realty. What's true about Andy and Charlene?
Andy is an associate broker who works for Tip Top Realty, where Charlene is a managing broker.
The Indiana Real Estate Commission requires ________ records to include information about deposits, disbursements, and any accrued interest.
Escrow account
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.
Which of these is a duty that licensees owe to their seller or landlord clients, according to the Indiana Code?
Fulfill the terms of your agency relationship.
Jimbo doesn't yet have an Indiana real estate license. Which activity is he legally allowed to perform without one?
Give advice to a friend who is negotiating the purchase of a house.
Indiana broker Harvey failed to disclose the fact that his seller client's property was situated on a former landfill, even though he was aware of it. When the buyers subsequently sued him for damages, the commission made restitution part of Harvey's disciplinary sanction. What's NOT true about what will happen to Harvey?
Harvey can elect to serve a prison sentence rather than pay restitution to the consumer.
Why would the Indiana Real Estate Commission impose an emergency suspension on a broker?
The commission fears the licensee is a threat to the general public.
Derek is having postcards printed to advertise his services as an Indiana real estate broker. He'll use his name, Derek Dibbley, on the card. What else do Indiana real estate advertising rules require him to include?
The company name of his associating brokerage, as it appears on the company's license
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.
Regal Realty has two branch offices along with its main office. Managing broker Trish may manage ______.
The main office and any or all of the branch offices
Alene has just been issued her affiliate broker's license, and she's associated with Regal Realty. She's working from its main office, since the branch offices are farther from her home. Where will her license be assigned?
To her place of business, the main office of Regal Realty
The Indiana Real Estate Commission has the power to inspect ______ of licensees and brokerage companies.
Transaction files and escrow account records
If the seller in a residential transaction submits an amended disclosure to the buyer, the buyer has _____ to terminate the contract with return of the buyer's earnest money.
Two business days
New Indiana licensees have their continuing education requirements waived for ______ while they complete their post-licensing education.
Two years
Charles is a licensed real estate broker in Kentucky. He's representing the buyer in the sale of a commercial building located in Bloomington, Indiana. It's a complex transaction, and Charles is working in conjunction with Indiana broker Bev to complete it. Is Charles acting legally?
Yes, because he's working in cooperation with an Indiana broker who's seen proof of Charles' Kentucky broker's license.
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
In Indiana, which license type allows the licensee to perform real estate activities independently, without supervision from another broker?
Managing Broker
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
Which statement best describes your responsibility when presenting offers to a client?
Present all offers in a timely manner.
You're representing a seller client, Angela, who has mentioned she may not accept any offers lower than $200,000 for her home. If you receive an offer for less than $200,000, what must you do?
Present the offer and let Angela decide whether or not to accept it.
When must Indiana sellers deliver the Seller's Residential Real Estate Sales Disclosure form to prospective buyers?
Prior to accepting an offer
indiana buyers of residential property must receive a property condition disclosure from the seller at what point in the process?
Prior to seller acceptance of the buyer's offer
Refusing to draft a written offer for your buyer client or submit a written offer to a seller on your buyer client's behalf is ______.
Prohibited
If a licensee from another jurisdiction desires an Indiana license, standard Indiana pre-licensing education and exam requirements may be waived if the licensee declares knowledge of Indiana license law and provides ______.
Proof of licensure in the jurisdiction of residence
An Indiana broker requests to be assigned to a managing broker of a referral company. Her license will be put on ______ status, and she won't be allowed to actively work with real estate transactions.
Referral
An Indiana licensee who's representing a seller splits the commission earned on the transaction with the broker who represents the buyer. Is this compensation permitted?
Yes, commission-splitting among persons licensed to perform real estate activities is permitted with seller authorization.
Indiana broker Jeremy hasn't talked to his old friend Richard in years. When they run into each other unexpectedly, Jeremy discovers that Richard has been hunting for a home to buy with his new wife, but their broker hasn't found them the right place after four months. Jeremy convinces Richard (it doesn't take much) to break his agreement with their current broker and sign a buyer representation agreement with Jeremy instead. Has Jeremy violated Indiana's professional standards of practice?
Yes, it's a violation for Jeremy to encourage Richard to breach a written agreement with another licensee in order to create a new agreement with Jeremy.
A broker associated with ABC Realty moves to the other side of town. However, she doesn't want to change brokerages and continues working out of its main office. Which of these actions is she responsible for taking?
She must update her contact information with the real estate commission.
Wilma plans to become a managing broker, but her application was denied. Which of these is the most likely reason the commission denied her application?
She's had five years of experience working in a real estate office. She's been licensed for one year.
Shenandoah can't wait to get her broker's license and start practicing real estate in Indiana. Which of these might prevent her from starting to live her dream?
She's only 17.
In Indiana, which of the following events would stigmatize a property?
Site of a notorious crime
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.
Sophie's had an ethical difference of opinion with her managing broker, and they've agreed to terminate her association with the brokerage. Sophie hasn't yet agreed to associate with another brokerage. What happens to Sophie's license?
Sophie's license will be unassigned and inactive when she and her current broker notify the commission of the termination, which must be done within five days.
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.
If a broker is fined by the Indiana Real Estate Commission and doesn't pay the fine, how will the commission likely follow up?
Suspend the broker's license.
If you're a licensee representing a buyer, and another licensee from your office represents the seller in the transaction, which of these statements is true?
You may not share your client's confidential information with any other licensee at the firm, except your managing broker under certain circumstances.
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.
You're representing buyer Clancy, who has made an offer on a home in Bloomington. The seller would like you to verify Clancy's claim that he has enough money in the bank to pay cash for the property. Which response is consistent with your agency duties as outlined in the Indiana Code?
Your client's ability to pay cash isn't something you're required to investigate or verify for the seller.
You plan to run advertisements promoting yourself as an Indiana broker on your favorite radio station. What must happen before the ad you wrote can be submitted to the station for recording and broadcast?
Your managing broker must review and approve it.
Your seller client is ready to complete the Seller's Residential Real Estate Sales Disclosure. How do you advise him?
"Your responsibility is to complete the form honestly and according to your actual knowledge."
Which of these statements about Indiana branch offices is true?
Branch offices must be registered with the real estate commission prior to opening.
How many hours of management-related education are Indiana brokers required to take in order to qualify for the managing broker designation?
24
Reann's an Indiana broker who's also a member of the Air Force. She's six months away from her license renewal date when she's called to active duty overseas. As a result, she hasn't completed her CE and can't get her renewal application in on time. She returns home just two weeks after her license renewal date. She requests an extension based on her military service. When the commission grants her renewal extension, how much time will it give her?
180 days from the date Reann was released from active duty
Rick and Jane are a married couple in Indiana who decide to start a broker company. What's NOT true about licensing their new company as a partnership?
A qualified employee, who can't be one of the partners, must be designated as the managing broker.
Which of these Indiana properties requires a seller to complete the Seller's Residential Real Estate Sales Disclosure?
A single-family home on five acres
By accepting and depositing earnest money funds, an Indiana broker is agreeing to do what?
Abide by Indiana license law related to the handling of escrow funds.
Indiana brokers can avoid sub-agency by ______.
Acting as a cooperating broker
Aggie recently assisted her elderly aunt, Bev, in the sale of Bev's home. Aggie's real estate license expired a few years ago, but she did accept a cash thank-you gift from Bev. Then Aggie's embittered ex-husband learned of the situation and filed a complaint against her with the Consumer Protection Division, and Aggie received a cease-and-desist order from the attorney general. What's NOT true about this situation?
Aggie is prohibited from discussing the situation with her aunt Bev, since Bev was a consumer involved in the unlicensed activity.
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.
You're representing a buyer client. To whom must you disclose this fact?
All parties in the transaction
Lorraine is an unlicensed assistant. Which of the following tasks is she permitted to perform for her broker?
Assemble closing documents.
As a buyer's agent, writing a quality offer will help your clients _______.
Avoid legal trouble
The policies and procedures manual is designed to _______.
Be a reference for all firm members
USPAP requires appraisers to ______.
Be competent to appraise the subject property
In addition to guidelines and standards, what other information do policies and procedures manuals contain?
Best practices and core business processes
Which of these situations would most likely result in a cease-and-desist order from the Indiana Office of the Attorney General?
Bruno continues performing real estate services for payment after his license has been revoked.
Which of these activities is an unlicensed assistant in Indiana allowed to do?
Calculate the commission on a transaction.
If an Indiana licensee wants to reactivate an expired license within three years of expiration, the broker has to pay the renewal fee and ______.
Complete all continuing education requirements for the current licensing period
Indiana broker Paul is helping his clients make an offer on a home listed by broker Cyndi, who works for a different brokerage than Paul. Paul is considered a ______.
Cooperating agent
The PPM serves as a support tool for licensees by ______.
Describing the rules under which licensees must work and the steps for performing various tasks
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.
You're representing a seller who asks you to keep certain facts about the property to yourself, such as the need for some foundation repairs. How does Indiana state law guide you in this situation?
Disclosure of adverse material facts is a legal requirement, so this doesn't fall within your duty of confidentiality to the seller.
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.
The commission is holding a disciplinary hearing regarding a complaint against licensee Roxanne. What's NOT true about the possible outcomes of this hearing?
If the commission decides Roxanne hasn't committed a violation, it will impose a fine on the complainant.
Roxanne, an Indiana broker, is under investigation by the Consumer Protection Division. Which of these statements is true?
If the investigation determines Roxanne has likely violated license law, the Real Estate Commission will hold an evidentiary hearing about the matter.
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
What does the Indiana Real Estate Commission have the right to do relative to brokerage records?
Inspect them at any time.
How does the brokerage policies and procedures manual work to reduce the risk of misconduct or mistakes from licensees?
It documents the guidelines for behavior and steps for handling business that all members of the brokerage must use.
Which of these statements describes USPAP and its use?
It provides guidelines for conducting and reporting an appraisal.
Which of these statements accurately describes the Indiana Real Estate Commission?
It's composed of nine licensed brokers (one from each congressional district), one broker at large, and two consumer members. All are appointed to four-year terms by Indiana's governor.
In Indiana, which one of these scenarios would require a real estate license?
Janice is searching for a new home for a friend moving into town. After the friend buys a property, Janice will receive 2% of the sales price for her time.
Dylan, an Indiana broker, has shown his buyer client dozens of properties. His client finally settles on a home that's just outside his budget but that has a mother-in-law apartment. After first checking the zoning laws, Dylan assures him the apartment can be rented out to help with the mortgage. Has Dylan violated Indiana's professional standards of practice?
No, because Dylan checked to make sure he was advising his client correctly.
Your friend Lisa, who doesn't have a real estate license, gives you a referral, and the referral leads to a client and a closed transaction for you. Can you decide to pay Lisa a referral fee?
No, because Indiana defines negotiating or agreeing to a referral fee as an activity requiring a real estate license.
Melinda completed six hours of CE in May, eight hours of CE in June, and 10 hours of CE in November. In the calendar year of January to December, she completed a total of 24 CE hours. Has she completed the required CE according to Indiana license law?
No. She can't carry over CE hours after June 30, so she still needs to do two hours of CE in the current time period.
Jose's client verbally agrees to a buyer's offer. This is considered _______.
Non-binding
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.
When you're representing a property owner, what must you do before you're allowed to advertise or offer the property for sale, lease, or rent?
Obtain written permission from the property owner
An example of a legally acceptable incentive a licensee may offer to buyers in Indiana is ___________.
Offering to pay for a home warranty and disclosing the incentive to all parties in the transaction.
Mandy's license is up for renewal. Which of these is NOT an action she'll take to renew her license?
Pass the license renewal exam by scoring at least 70%
The Indiana Real Estate Commission may order what type of examination if the circumstances of an investigation deem it appropriate?
Physical or mental exam
Licensee Shawna has just witnessed another broker, Lee, engaging in a clear violation of license law, putting his client at risk of making decisions that would affect his family's health and safety. She does what she can to protect the consumer in the situation and then notifies the Indiana Real Estate Commission of Lee's behavior. What's the commission likely to do?
Place broker Lee under a summary suspension since his behavior is a threat to consumers.
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
When done for others and for compensation, which of the following may be done by someone who doesn't hold an Indiana real estate license?
Researching school districts and crime statistics for various neighborhoods
Jim is an unlicensed assistant at Peabody Real Estate in Indiana. Which of these tasks can he legally do at his broker's request?
Schedule property showings.
Ian is an unlicensed individual helping his sister, Angela, find a new house. She's agreed to pay him $1,000. Which of the following activities can he legally perform?
Search real estate sites and other resources to find available homes.
When representing a buyer in Indiana, one of your statutory duties is to ______.
Seek a property with a price and terms satisfactory to the client
Bill was a real estate professional whose Indiana real estate license was revoked. He wants to apply for a new license and does so after completing all the requirements for licensure. The commission issues him a real estate license. At least how much time has passed?
Seven years
As an Indiana licensee, you're required to complete your duties as an agent according to ______.
The Indiana Code
The Indiana property you're listing is included in a homeowners association (HOA). What's true about the disclosures for this transaction?
The buyer must receive disclosures regarding the HOA, in addition to the Seller's Residential Real Estate Sales Disclosure form.
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.
What does Indiana law require licensees to disclose to potential clients?
Their brokerage's written policy regarding allowed agency relationships
Which of the following are Indiana real estate licensees required to disclose to their potential clients?
Their brokerage's written policy regarding allowed agency relationships
If an Indiana licensee lets his or her license expire, how long does the licensee have to complete the renewal requirements before the licensee has to pay a penalty?
Three years
