1.1 Indiana Real Estate Commission (IREC) Overview
Key Takeaways
- The Indiana Real Estate Commission (IREC) regulates licensees under Indiana Code (IC) Title 25, Article 34.1, and rules in 876 IAC.
- IREC sits inside the Indiana Professional Licensing Agency (PLA) at 402 W. Washington Street, Indianapolis.
- The Commission has 12 members: 9 licensed brokers (one a managing broker) plus 3 public members, appointed by the Governor.
- Indiana has NO salesperson license; every entry-level licensee is a "broker" from day one.
- IREC can fine, censure, place on probation, suspend, or revoke a license; criminal matters go to the Attorney General.
Why the Commission Matters on the Exam
IREC is a board inside the Indiana Professional Licensing Agency (PLA) — the umbrella agency that staffs more than 35 licensing boards. A common trap: IREC does not operate under the Secretary of State, the Department of Commerce, or the Attorney General. The PLA provides the executive director, staff, and the online renewal system; the Commission itself sets policy, hears disciplinary cases, and adopts rules.
Statutory Framework
Indiana real estate practice rests on two pillars you should be able to name on sight:
| Authority | Citation | What it contains |
|---|---|---|
| Indiana Real Estate License Law | IC 25-34.1 | Who must be licensed, license types, prohibited acts, trust funds, discipline |
| Commission Rules | 876 IAC | Education approval, CE topics, advertising, recordkeeping, procedure |
When a fact pattern says "the statute requires…" think IC 25-34.1; when it says "Commission rule requires…" think 876 IAC. The Real Estate Recovery Fund, escrow handling, and disclosure duties all flow from these.
Commission Composition
Membership is a classic exam item. The Commission is governed by 12 members, all appointed by the Governor:
| Member type | Number | Qualification |
|---|---|---|
| Licensed brokers | 9 | Active for the required years; one must be a managing broker |
| Public (consumer) members | 3 | Not connected to the real estate industry |
Members serve staggered terms, so the whole board never turns over at once — this preserves institutional memory and continuity in disciplinary policy. Distractors on the exam often shrink the board to 5, 7, or 9 total members; lock in 12.
Enforcement Powers
IREC's disciplinary toolbox is graduated. For a single complaint it may:
- Issue a letter of reprimand or censure
- Impose a civil penalty (a fine)
- Place the licensee on probation with conditions
- Require additional education
- Suspend the license for a fixed period
- Revoke the license permanently
Exam Tip: IREC handles administrative discipline. It cannot jail anyone. Criminal conduct (forgery, theft of trust funds) is referred to the county prosecutor or the Indiana Attorney General. If an answer choice says the Commission "sentences" a licensee to jail, it is wrong.
Quick Contact Facts
- Address: 402 W. Washington Street, Room W072, Indianapolis, IN 46204
- Phone: (317) 234-3009
- Web/renewal portal: pla.in.gov (online services via mylicense.in.gov)
Memorize the regulator's identity (PLA), the law (IC 25-34.1), the rules (876 IAC), and the 12-member structure. Those four anchors answer a surprising share of the opening state questions.
How a Complaint Moves Through IREC
Understanding the disciplinary pipeline helps you answer scenario questions about who does what. The flow is consistent:
- A consumer or licensee files a written complaint with the PLA's investigations staff.
- Investigators gather records, escrow statements, and advertising, then refer findings to the Attorney General's licensing-enforcement division, which prosecutes cases before the board.
- The Commission holds an administrative hearing, where the licensee may appear with counsel and present evidence.
- The Commission issues a final order — dismissal, reprimand, fine, probation, suspension, or revocation.
- A disciplined licensee may seek judicial review in an Indiana court.
Exam Tip: The Attorney General prosecutes the case, but the Commission decides it. Do not confuse the prosecutor (AG) with the decision-maker (IREC). The PLA staff investigate; they do not impose discipline.
The Real Estate Recovery Fund
Indiana maintains a Real Estate Recovery Fund financed by a portion of licensing fees. Its purpose is to reimburse consumers who win a court judgment against a licensee for fraud, misrepresentation, or conversion of funds but cannot collect from the licensee.
| Feature | How it works |
|---|---|
| Funding source | A surcharge built into license fees, not a separate consumer charge |
| Trigger | An unsatisfied court judgment based on a licensed real estate act |
| Effect on licensee | The license is automatically suspended until the fund is repaid in full, with interest |
| Limit | Statutory caps apply per transaction and per licensee |
Common trap: The fund pays consumers, not licensees, and it does not erase the licensee's debt — IREC suspends the offender until they reimburse the fund. Answer choices suggesting the fund "forgives" the licensee or pays the broker's legal fees are wrong.
Together, the complaint pipeline and the recovery fund show the Commission's two faces: it disciplines bad actors and it backstops consumers harmed by them. Both themes recur throughout the Indiana state portion.
Rulemaking and the Limits of Commission Power
The Commission adopts rules under Indiana's Administrative Rules and Procedures Act, but it cannot exceed the authority the legislature granted in IC 25-34.1. A rule that conflicts with the statute is invalid. Practically, this means the Commission can fill in operational detail — approving course providers, setting CE topics, defining advertising standards — but it cannot create a brand-new license type or waive a statutory requirement on its own. Expect questions that test whether a given action is statutory (set by the legislature) or regulatory (set by Commission rule).
| Action | Source |
|---|---|
| 90-hour pre-license requirement | Statute (IC 25-34.1) |
| Approving which schools may teach it | Commission rule (876 IAC) |
| License revocation power | Statute |
| Specific CE topics each cycle | Commission rule |
Exam Tip: When a question asks "the Commission may by rule…", the correct answer is an operational detail, not the creation of substantive rights. Statutory mandates come from the General Assembly, not the board.
Under which Indiana agency does the Indiana Real Estate Commission operate?
Which pairing correctly identifies Indiana's primary real estate statute and rules?
What disciplinary action is OUTSIDE the Indiana Real Estate Commission's authority?