Indiana Real Estate Broker Exam — All Questions

Earnest money and other client funds received in an Indiana transaction must be deposited into the:

• a.Escrow or trust account maintained by the company or managing broker✓
• b.Individual broker's personal account
• c.Indiana Real Estate Commission's account
• d.Seller's personal account

Indiana requires client funds such as earnest money to be held in a properly maintained escrow or trust account, the responsibility of the managing broker. Commingling client funds with personal or business operating money is prohibited.

Under Indiana law, a licensee who fails to disclose their agency relationship to the consumers involved may face:

• a.No consequence
• b.Disciplinary action by the Indiana Real Estate Commission✓
• c.An automatic license upgrade
• d.A required commission increase

Indiana requires licensees to disclose their agency status to consumers. Failing to make required agency disclosures, or misrepresenting whom the licensee represents, can result in disciplinary action by the Commission, including fines or license sanctions.

By when must an Indiana listing broker deposit money received in connection with a transaction after final acceptance of the offer?

• a.Within twenty-four hours of receiving the money
• b.On or before the next two banking days after acceptance✓
• c.On or before the next five banking days after acceptance
• d.At closing, together with the remaining sale proceeds

The commission's rule gives the listing broker until the end of the next two banking days after final acceptance either to deposit the money in the broker's escrow/trust account or to deliver it to whoever the purchase agreement names to hold it. The broker with whom money is deposited is held responsible for it. Cite: 876 IAC 8-2-2(a).

A buyer and a seller each refuse to release the earnest money the broker holds. What does the commission's rule allow the broker to do?

• a.Release the money to the seller as liquidated damages
• b.Deposit the money with the commission for distribution
• c.Hold the money indefinitely until a court orders release
• d.Give certified notice and release the money after 60 days✓

The broker may start a release process: notify all parties at their last known address by certified mail that the deposit will go to the party named in the letter unless, within sixty days of the mailing date, the parties enter a mutual release or one of them begins litigation. Cite: 876 IAC 8-2-2(d).

What must every Indiana listing agreement contain and do?

• a.A definite expiration date, and a copy to the owner in three business days✓
• b.A definite expiration date, and a copy to the owner at the time of closing
• c.An automatic renewal clause, and a copy to the owner within thirty days
• d.A guaranteed net return, and a copy to the owner within three business days

Since 2024 the writing requirement sits in the statute as well as the rule, and the 2025 amendment confirmed that paper or electronic form both satisfy it. The same rule now covers buyer agency agreements. The original and all electronic files stay in the listing broker's office. Cite: IC 25-34.1-12-1; 876 IAC 8-2-1(a).

When may an Indiana broker company accept a listing that provides for a net return to the seller?

• a.Only if the listing states a maximum commission✓
• b.Only if the seller is represented by an attorney
• c.Only in commercial real estate transactions
• d.Never, because net listings are always prohibited

Indiana does not ban net listings outright. The rule forbids accepting one unless the listing agreement provides for a maximum commission the seller will pay, which is what stops the arrangement from handing the broker every dollar above the seller's number. Cite: 876 IAC 8-2-1(b).

What must appear in an Indiana broker's classified ad, sign, business card or internet listing?

• a.The broker's individual real estate license number
• b.The commission's consumer complaint hotline
• c.The seller's written consent to the advertising
• d.The broker company's name, clearly visible✓

All advertising is under the direct supervision of, and in the name of, the broker company. Advertising that shows only a post office box, a telephone number or a street address is prohibited, and a broker may not advertise so as to suggest the property is offered by a private party. Cite: 876 IAC 8-1-8.

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.

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.

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.

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.

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.