Indiana Real Estate Broker Exam Practice Test
Frequently asked questions
How many Indiana Real Estate Salesperson Exam practice questions are here?+
A full bank of original Indiana Real Estate Salesperson Exam practice questions across the official content areas, weighted like the real exam, with explanations. Free, no signup.
What is the Indiana Real Estate Salesperson Exam exam like?+
A multiple-choice exam. Practice by topic here, then take the full timed mock exam to gauge readiness.
Are these the real exam questions?+
No. Every question is 100% original, written from public primary sources with explanations. We never copy real exam questions or paid prep material.
Can I study in Chinese or Spanish?+
PrepPass practice is in English, 中文 and Español. The official exam is in English — switch the question language to English any time to rehearse the exact terminology you'll see on test day.
Sample practice questions
A few real questions from this free bank, with full explanations. Use the practice tool above for the whole set.
- 1. Property Ownership
A form of co-ownership in which two or more owners each hold an undivided interest with the right of survivorship is known as:
- a.Tenancy in common
- b.Joint tenancy
- c.Ownership in severalty
- d.A leasehold estate
Answer: b
Explanation: In a joint tenancy, co-owners hold equal, undivided interests and enjoy the right of survivorship: when one joint tenant dies, that share passes automatically to the surviving joint tenants rather than to heirs. Tenancy in common has no survivorship, and ownership in severalty is ownership by one person alone.
- 2. Valuation and Market Analysis
Which approach to value is generally the most reliable for appraising a single-family, owner-occupied home?
- a.The sales comparison approach
- b.The income approach
- c.The gross rent multiplier method
- d.The cost approach only
Answer: a
Explanation: The sales comparison approach compares the subject property to recently sold, similar properties and adjusts for differences. Because ample comparable sales usually exist for residential homes, it best reflects what a buyer would pay. The income approach suits rental and investment property, while the cost approach is most useful for new or special-purpose buildings.
- 3. Contracts
Under which legal doctrine must a contract for the sale of real estate be in writing to be enforceable?
- a.The parol evidence rule
- b.The statute of frauds
- c.The doctrine of laches
- d.The statute of limitations
Answer: b
Explanation: The statute of frauds requires certain contracts, including those for the sale of an interest in real estate, to be in writing and signed to be enforceable. The parol evidence rule limits use of outside evidence to change a written contract, and laches concerns unreasonable delay in asserting a right.
- 4. Agency
An agent's fiduciary duty to place the principal's interests above the agent's own and to avoid conflicts of interest is the duty of:
- a.Loyalty
- b.Accounting
- c.Disclosure
- d.Reasonable care
Answer: a
Explanation: Loyalty requires the agent to act solely in the principal's best interest and avoid self-dealing or conflicts of interest. Accounting concerns safeguarding and reporting the principal's money and property; disclosure requires sharing material facts. These are commonly summarized by the acronym OLD CAR.
- 5. Property Disclosures
Federal law requires sellers and landlords to disclose known lead-based paint hazards for residential housing built before:
- a.1968
- b.1978
- c.1988
- d.1992
Answer: b
Explanation: The federal Residential Lead-Based Paint Hazard Reduction Act requires disclosure of known lead-based paint and hazards, and delivery of an EPA pamphlet, for target housing built before 1978, the year residential lead paint was banned. Buyers must generally be given a 10-day period to test for lead.
- 6. Practice of Real Estate
Directing prospective buyers toward or away from particular neighborhoods based on their race or other protected class is an illegal practice known as:
- a.Blockbusting, which is legal with disclosure
- b.Steering, which is prohibited by fair housing law
- c.A permitted marketing strategy
- d.A RESPA requirement
Answer: b
Explanation: Steering is guiding buyers toward or away from neighborhoods based on a protected characteristic, limiting their housing choices. It violates the Fair Housing Act. Blockbusting (inducing panic selling) and redlining (denying loans by area) are separately prohibited practices.
- 7. Real Estate Calculations
A home sells for $300,000 and the total real estate commission is 6% of the sale price. What is the total commission?
- a.$1,800
- b.$18,000
- c.$15,000
- d.$24,000
Answer: b
Explanation: Commission equals sale price multiplied by the rate: $300,000 x 0.06 = $18,000. Be careful to convert the percentage to a decimal (6% = 0.06). This $18,000 is the total paid to the brokerages before any split between the listing and selling sides.
- 8. Indiana License Law (IC 25-34.1)
Indiana real estate licensing is regulated by the Indiana Real Estate Commission, which operates under the:
- a.Indiana Professional Licensing Agency (PLA)
- b.U.S. Department of Housing and Urban Development
- c.National Association of REALTORS
- d.local multiple listing service
Answer: a
Explanation: The Indiana Real Estate Commission sets licensing and practice standards, and the Indiana Professional Licensing Agency (PLA) provides its administrative support, processing applications, renewals, and enforcement under Indiana Code Title 25.
- 9. Indiana Agency
Indiana law permits a licensee to represent both the buyer and the seller in the same transaction as a limited agent only with the:
- a.Consent of the managing broker alone
- b.Written consent of both parties
- c.Verbal consent of one party
- d.Approval of the Commission
Answer: b
Explanation: Indiana's agency statute allows limited agency (representing both sides) only when both the buyer and seller give written consent after disclosure. Without informed written consent, a licensee may not act as a limited agent for opposing parties.
- 10. Indiana Practice
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
Answer: a
Explanation: 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.