Indiana Real Estate Broker Examination

Which Indiana state agency oversees the Indiana Real Estate Commission (IREC) and issues real estate licenses?

• AIndiana Secretary of State Business Services Division
• BIndiana Professional Licensing Agency (PLA)
• CIndiana Economic Development Corporation (IEDC)
• DIndiana Office of the Attorney General Licensing Division

What is the minimum age requirement to obtain an Indiana real estate broker license?

• A18 years old
• B19 years old
• C21 years old
• D25 years old

How many hours of pre-license education does Indiana require to obtain a broker license?

• A45 hours
• B60 hours
• C90 hours
• D120 hours

A homeowner spends $45,000 on a pool, but market evidence indicates it adds only $18,000 to the home's value. Which valuation principle explains the difference?

• AAnticipation
• BSubstitution
• CPlottage
• DContribution

How many hours of continuing education must an Indiana broker complete for license renewal?

• A8 hours annually during each continuing education year
• B12 hours annually
• C16 hours every two years at the midpoint of the cycle
• D24 hours every three years with no annual minimum

What is the term length for an Indiana real estate broker license?

• AOne calendar year
• BTwo calendar years
• CThree years
• DFour calendar years

An Indiana seller asks whether the listing broker breaches a duty merely by listing a competing property for another seller. Under IC 25-34.1-10-10(e), which statement is correct?

• ACompeting listings are automatically prohibited within the same county
• BThe broker must surrender the first seller's commission before accepting another listing
• CThe broker must become a limited agent for both unrelated sellers
• DThe broker may list competing properties without that fact alone breaching the seller-age…

What is the role of the Indiana Real Estate Commission (IREC)?

• ATo provide mandatory pre-licensing classroom instruction and direct career placement serv…
• BTo act as the regulatory body that establishes rules and standards for real estate licens…
• CTo market and sell foreclosed residential properties directly to the public on behalf of…
• DTo establish annual municipal property tax rates and conduct binding county-wide parcel a…

A buyer will not pay more for a property than the cost of acquiring an equally desirable substitute without undue delay. Which valuation principle is illustrated?

• AConformity
• BSubstitution
• CProgression
• DAssemblage

Under the managing-broker eligibility requirements effective July 1, 2025, how long must an applicant have held an active Indiana broker license, in addition to completing the 24-hour managing-broker course and passing the required examination?

• A1 year
• B2 years
• C3 years
• D5 years

An Indiana buyer is already under contract to purchase a home. Unless the buyer and broker agreed otherwise, does IC 25-34.1-10-11 require the buyer's broker to keep locating alternative properties?

• ANo; that additional search is not required while the buyer is under contract
• BYes; the broker must locate at least three alternatives every week
• CYes; the broker must submit backup offers without the buyer's instructions
• DNo; the purchase contract automatically terminates every other agency duty

Under Indiana law, which entity must approve all real estate education courses?

• AThe Indiana Department of Education
• BThe Indiana Real Estate Commission
• CThe Indiana Secretary of State
• DThe local real estate board

Under IC 25-34.1-6-2, how is performing acts of a broker without a required Indiana broker license classified?

• AA non-binding warning letter only, because the Commission cannot fine non-licensees
• BAdministrative cease-and-desist orders only, with no civil or criminal monetary penalties
• CRestitution of the commission only, provided the transaction closes without buyer loss
• DA Class A infraction, with each transaction constituting a separate offense

A seller's Indiana broker has no actual knowledge of a hidden structural defect. Under IC 25-34.1-10-10(d), which statement correctly describes the broker's inspection duty to a prospective buyer?

• AThe broker guarantees the absence of every defect not found in a showing
• BThe broker must personally perform a structural engineering inspection
• CThe broker has no duty to conduct an independent inspection for the buyer, while known ad…
• DThe broker may conceal a known defect if the seller objects to disclosure

The sole proprietor of an Indiana broker company dies. A formerly associated broker has not yet associated with another broker company. Under IC 25-34.1-4-6(a), what business may that broker carry out during the permitted 90-day period?

• AAny new transaction, provided the broker maintains a separate trust account
• BOnly new listings, because existing contracts terminate when the proprietor dies
• CNo previously contracted business, even if its closing was already scheduled
• DBusiness contracted before the death, while maintaining the required trust account

An Indiana listing broker who has a signed written listing agreement with a seller shows the listed home to an unrepresented buyer who has declined buyer agency representation. Under IC 25-34.1-10, what agency relationship exists in this showing?

• ABuyer agency with the unrepresented purchaser
• BSeller agency
• CAutomatic limited dual agency for both parties
• DMandatory subagency on behalf of the buyer

Under IC 25-34.1-10-13(b), when must an Indiana licensee disclose the broker company's written office agency policy?

• ABefore scheduling or showing any listed residential properties to a prospective buyer
• BAt the closing table immediately before the final settlement documents are signed
• CAt the beginning of agency, before the potential client discloses confidential information
• DWithin three business days after the residential purchase agreement is fully executed

Which fiduciary duty requires a broker to place the client's interests above their own?

• AObedience
• BLoyalty
• CDisclosure
• DConfidentiality

Under Indiana law, when is dual agency permitted?

• AIn any residential or commercial transaction without prior written restriction or notice
• BOnly with the informed written consent of both parties
• CUnder no circumstances, because dual representation is strictly prohibited statewide
• DOnly in commercial lease or sale transactions exceeding one million dollars in value

An Indiana broker proposes limited agency in a transaction, but the seller does not wish to consent. Which statement is correct?

• AImmediately withdraw from representing both the buyer and the seller in the transaction
• BThe seller may refuse limited agency; the broker cannot impose it
• CContinue representing both clients simultaneously without disclosing the dual role to eit…
• DRefer the prospective buyer to an outside brokerage firm and forfeit the listing commissi…

Which of the following is NOT a fiduciary duty owed by an Indiana broker to their client?

• AUndivided loyalty to the client's best interests
• BObedience to all lawful client instructions
• CFull disclosure of known material facts
• DGuarantee of profit

What is the duty of confidentiality in an Indiana agency relationship?

• AThe broker must keep every detail about the client and the property confidential in perpe…
• BThe broker must conceal known structural defects and adverse material facts about the phy…
• CThe broker must keep confidential the client's motivation, financial position, and negoti…
• DThe broker is prohibited from sharing any transaction documents or client disclosures wit…