Indiana Real Estate Broker Exam — All Questions

Without the seller's informed written consent, what may the seller's Indiana licensee not tell a buyer?

• a.That the roof leaked badly during last spring's storms
• b.That the property sits inside a mapped flood plain
• c.That the seller would take less than the listed price✓
• d.That an offer on the property has already been accepted

Three things are sealed without informed written consent: that the seller will accept less than the listed price or grant other concessions, what motivates the seller to sell, and other material or confidential information about the seller. Known adverse physical facts run the other way and must be disclosed. Cite: IC 25-34.1-10-10(b), (d).

The Indiana broker license application fee is $50. What else does the commission's fee rule require at issuance and renewal?

• a.$10 for the investigative fund✓
• b.$10 for the real estate recovery fund
• c.$20 for the investigative fund
• d.$25 for the education advisory council

The rule adds ten dollars for the investigative fund administered under IC 25-34.1-8-7.5, which is why the Professional Licensing Agency quotes sixty dollars for a broker application. The recovery fund is financed separately, by a surcharge the commission assesses only when the fund falls below its statutory floor. Cite: 876 IAC 5-3-1; IC 25-34.1-7-2.

What may an unlicensed assistant tell a caller who asks about one of the company's listings?

• a.Whether the seller would consider a lower price
• b.The terms of the purchase agreement now on file
• c.The seller's reason for moving and their timeline
• d.List price, address, features and directions✓

An unlicensed assistant may not show property, hold open houses, discuss or explain a contract or lease with anyone outside the company, negotiate fees, or answer questions about a listing beyond list price, address, property features and geographic directions. Cite: 876 IAC 8-1-7.

An Indiana broker license runs for a three year term. How much continuing education does that cycle require?

• a.24 hours, at least 8 in each continuing education year
• b.36 hours, at least 12 in each continuing education year✓
• c.30 hours, at least 10 in each continuing education year
• d.45 hours, at least 15 in each continuing education year

The statute sets both the annual floor and the cycle total, and the rule blocks carrying surplus hours forward, so a broker cannot satisfy the cycle by front-loading it into one year. Cite: IC 25-34.1-9-11(a)(1); 876 IAC 7-5-1(g).

In Indiana, what does the payment of a licensee's compensation establish about agency?

• a.It creates an agency relationship with whoever pays
• b.It creates a limited agency with both of the parties
• c.It creates nothing; compensation does not make agency✓
• d.It creates a subagency with the listing broker company

The statute states flatly that the payment of compensation does not create an agency relationship between a licensee and a seller, landlord, buyer or tenant. Parties must still be advised whether compensation will be shared with other broker companies representing adverse interests. Cite: IC 25-34.1-10-13(c), (d).

The commission levies a civil penalty for a violation with no statutory maximum. What does its 2025 fine rule set?

• a.$500 for the violation
• b.$2,500 for the violation
• c.$5,000 for the violation
• d.$1,000 for the violation✓

The rule filed in April 2025 sets fines and civil penalties at fifty percent of any statutory maximum, or one thousand dollars where no maximum exists. The amount may move up or down for listed mitigating and aggravating factors, but never below one hundred dollars. Cite: 876 IAC 5-4-1.

A listing broker offers part of the commission to the side that produces the buyer. Who may be paid it?

• a.The selling broker company, never its associated broker✓
• b.The associated broker who actually found the buyer
• c.Either the selling company or its associated broker
• d.The buyer's attorney, who then pays the broker company

Indiana permits the inducement but routes the money: the commission share must be paid to the selling broker, and in no case may it be paid directly to a broker associated with the selling broker. Cite: 876 IAC 8-1-9.

What are the age and general education prerequisites for an Indiana broker license?

• a.At least 21 years old, with a high school diploma or GED
• b.At least 18 years old, with two years of college coursework
• c.At least 18 years old, with a high school diploma or GED✓
• d.At least 21 years old, with an associate degree or higher

The applicant must be eighteen before applying and hold a high school or general educational development diploma. The same section also bars applicants convicted of an act grounding discipline under IC 25-1-11, a crime bearing directly on competence, or a crime showing a propensity to endanger the public. Cite: IC 25-34.1-3-4.1(a).

Who must develop and enforce a broker company's written office policy on agency relationships?

• a.Each broker associated with the broker company
• b.The broker company's designated managing broker✓
• c.The Indiana Real Estate Commission by rule
• d.The listing broker on each individual file

The statute puts the policy on the managing broker, and it must specifically permit or reject the practice of disclosed limited agency. The policy is disclosed in writing at the beginning of the relationship, before the prospective client reveals anything confidential. Cite: IC 25-34.1-10-13(a), (b).

An owner manages only their own apartment units on one parcel. Up to how many units stays outside the licensing act?

• a.Four apartment units
• b.Eight apartment units
• c.Twenty apartment units
• d.Twelve apartment units✓

The act exempts a person whose only regulated activities relate to at most twelve apartment units located on a single parcel or on contiguous parcels. Separate exemptions cover hotel stays under thirty days and apartment rental by an individual whom a licensed broker employs or supervises. Cite: IC 25-34.1-3-2(b)(5), (6).

An Indiana broker's association with a broker company ends. How soon must a reassignment application reach the commission?

• a.Within five business days of the termination✓
• b.Within ten business days after the termination
• c.Within thirty calendar days of the termination
• d.Before the broker's next closing of any kind

The application is due within five business days and must elect either unassigned status or a new broker company; an unassigned broker may not practice real estate until assigned. Listings obtained during the association stay with the former broker company unless a written contract says otherwise. Cite: 876 IAC 8-1-4(a); 876 IAC 8-1-6.

The Indiana broker examination has two sections. What must an applicant score?

• a.70% averaged across the two sections together
• b.75% on each of the two sections separately✓
• c.70% on each of the two sections separately
• d.80% on the Indiana licensure law section alone

The examination is divided into general real estate practices and Indiana licensure law, and an applicant passes only by attaining at least seventy-five percent on each section. A section once passed is credited and need not be retaken. Cite: 876 IAC 6-6-3(a), (d), (e).

Two licensees in one Indiana broker company represent the buyer and the seller on the same deal. What is the result?

• a.Both licensees become limited agents for both clients
• b.The managing broker becomes a limited agent for both
• c.Each represents only their own client, with no imputation✓
• d.Knowledge held by one licensee is imputed to the other

This is an in-house agency relationship, not limited agency. Each client is represented only by that client's own licensee; the managing broker represents no party unless personally acting for a client; and there is no imputation of agency, knowledge or information among the company, the managing broker and the licensees. Cite: IC 25-34.1-10-12.5.

An unlicensed out-of-state broker wants to work an Indiana commercial deal. What does the statute require?

• a.Cooperation with an Indiana broker under a written agreement✓
• b.A temporary Indiana broker permit issued by the commission
• c.Registration of the transaction with the secretary of state
• d.Escrow funds held in the out-of-state broker's trust account

The out-of-state commercial broker must work in cooperation with an Indiana licensee, sign a written cooperation and compensation agreement, furnish proof of good standing, file an irrevocable consent to suit in Indiana, name the Indiana broker in all advertising, and place all escrow funds in the Indiana broker's trust account. The Indiana broker keeps the records five years. Cite: IC 25-34.1-3-11.

When must an Indiana owner deliver the completed and signed residential sales disclosure form?

• a.Within two business days after an offer has been accepted
• b.At least ten days before the scheduled closing date
• c.At the closing, along with the deed and closing statements
• d.Before an offer for the sale of the property is accepted✓

The statute fixes the moment: the owner completes, signs and submits the form to the prospective buyer before an offer is accepted. Before closing, an accepted offer is not enforceable against the buyer until both the owner and the buyer have signed the form. The form itself is State Form 46234, prescribed by the commission. Cite: IC 32-21-5-10; 876 IAC 9-1-2.

An applicant seeking Indiana licensure by reciprocity must pass which part of the broker examination?

• a.Both sections of the Indiana broker examination
• b.Only the Indiana licensure law section of the exam✓
• c.Only the general real estate practices section
• d.No section, if the home state's exam was equivalent

The rule waives the general real estate practices section for reciprocity applicants but not the Indiana licensure law section, which is the part that tests what differs between states. Cite: 876 IAC 6-6-3(b).

What must the written limited agency consent tell each Indiana party?

• a.That the commission has approved the arrangement
• b.That the limited agent will share all information
• c.That the party is free to refuse limited agency✓
• d.That the party may cancel the contract later on

The writing must state that the licensee will represent parties whose interests are different or adverse, list what the limited agent may not disclose, state that there is no imputation of knowledge, and state plainly that a party does not have to consent to the limited agency. Cite: IC 25-34.1-10-12(a).

How long does an aggrieved person have to file a discriminatory housing practice complaint with the Indiana civil rights commission?

• a.Not later than 180 days after the practice
• b.Not later than two years after the practice
• c.Not later than three years after the practice
• d.Not later than one year after the practice✓

The administrative complaint must be filed within one year, in writing, under oath and on the form the commission prescribes. A private civil action in the circuit or superior court carries its own one-year limit under IC 22-9.5-7-1. Cite: IC 22-9.5-6-1.

After an offer is accepted, an Indiana buyer receives an amended disclosure form revealing a defect. What may the buyer do?

• a.Nullify the contract in writing within two business days✓
• b.Nullify the contract in writing within ten business days
• c.Require the owner to repair the defect before closing
• d.Nothing; the only remedy is damages after the closing

The buyer has two business days after receiving the form to nullify the contract by delivering a written rescission to the owner or the owner's agent, incurs no liability for doing so, and is entitled to the return of any deposits made. Cite: IC 32-21-5-13.

An Indiana broker company refers a client to another broker company for a fee. What is required?

• a.Oral disclosure to the client at the time of the referral
• b.Written disclosure to the client at the time of the referral✓
• c.Written disclosure to the client before the deal closes
• d.No disclosure, since the fee comes from the other company

This duty is new. A broker company that refers a client or customer to another broker company must disclose that it may be compensated for the referral, in writing and at the time of the referral. Cite: IC 25-34.1-10-18, added by P.L.30-2026.

An Indiana landlord refuses to rent to an applicant because she is pregnant. Which protected class is engaged?

• a.Marital status under the Indiana Fair Housing Act
• b.Source of income under the Indiana Fair Housing Act
• c.Familial status under the Indiana Fair Housing Act✓
• d.Physical disability under the Indiana Fair Housing Act

Indiana defines a familial status act to include discrimination because the person is pregnant, is domiciled with a child under eighteen as that child's parent or legal custodian, or is in the process of obtaining legal custody of one. Marital status and source of income are not protected classes under IC 22-9.5-5-1. Cite: IC 22-9.5-1-2.