1.2 Indiana License Requirements

The "Broker From Day One" Rule

Unique to Indiana: There is no salesperson license. What most states call a "salesperson," Indiana calls a broker. What most states call a "broker" who can run an office, Indiana calls a managing broker. Read every exam question through this vocabulary or you will pick the wrong tier.

Eligibility and Pre-License Education

To apply for an Indiana broker license you must:

• Be at least 18 years old
• Hold a high school diploma or GED
• Be of good moral character and lawfully authorized to work in the U.S.
• Disclose any criminal history (certain convictions can disqualify)

The education bar is 90 hours of pre-license instruction from an IREC-approved provider, all completed before sitting for the exam:

Exam Logistics (Verified 2026)

A worked example: a candidate scores 78 scaled national but 71 scaled state. They have not passed — each portion is independent, and the failing state score must be retaken. The passing portion remains valid, but only within the 12-month window described below.

2025 Update: Indiana moved exam administration from PSI to Pearson VUE, and the exam is taken in person at a test center, not via online proctoring.

Application, Fingerprints, and the 12-Month Window

After passing, the path to an active license is:

1. Pass both portions at 75 scaled
2. Submit the fingerprint-based criminal background check (FBI and state)
3. File the license application with the PLA and pay the $60 license fee
4. Be sponsored by a managing broker who activates the license

Critical timing rule: If you pass one portion but not the other, the passed portion stays valid for 12 months. Miss the window and you retake both. Likewise, apply for the license within the period IREC allows after passing, or the exam credit lapses.

Post-License Education (First Two Years)

A brand-new Indiana broker does not take ordinary continuing education in the first license term. Instead, the law requires a 30-hour post-license course completed within the first two years of initial licensure. Until that course is done, the license cannot be renewed on a normal schedule.

The post-license curriculum is practical and transaction-focused:

• Financing and the lending process
• Business planning and lead generation
• Negotiation and contract drafting practice
• Risk management and compliance habits

Common trap: Students confuse the 90-hour pre-license requirement, the 30-hour post-license requirement, and the 36-hour-per-cycle CE covered in Section 1.4. They are three separate buckets: 90 to get in, 30 in the first two years, 36 every three-year cycle thereafter.

Becoming a Managing Broker

The managing broker tier is the only license that can run a brokerage, hold escrow, and supervise others. Requirements:

The 24-hour course drills brokerage supervision, advanced Indiana law, risk management, ethics, and office-policy development — exactly the duties Section 1.3 covers. Note the exam often baits with an "8-hour" managing broker figure; the correct number is 24 hours.

Reciprocity and Out-of-State Applicants

Indiana evaluates out-of-state licensees individually:

• The national portion may be waived if passed in another state with equivalent standards
• The Indiana state portion must still be passed
• A current background check and full application are always required

Exam Tip: Even a 20-year out-of-state broker cannot skip the Indiana state exam. The state-specific law is non-transferable. Choose answers that always require the state portion.

Putting the Numbers Together

Think of the journey as a number ladder: 18 years old, 90 pre-license hours, 145 exam questions (80 + 50 + 15), 75 scaled to pass each side, $60 license fee, 30 post-license hours in 2 years, then 24 managing-broker hours after 2 years of experience. If you can recite that ladder, you can answer most logistics questions on the state portion without hesitation.

Test-Day Logistics and Retakes

Because the exam is in person at a Pearson VUE center, the candidate handbook governs check-in. Plan for these rules:

• Arrive 30 minutes early; late arrivals may forfeit the appointment and the fee.
• Bring two forms of ID, one government-issued with photo and signature; the name must match the registration exactly.
• An on-screen calculator is provided; personal calculators, phones, notes, and study aids are prohibited.
• A passing portion remains valid while you retake the failing portion within the 12-month window; you pay the exam fee again for each retake.

Worked example: A candidate fails the state portion twice. Indiana does not cap attempts within the validity window, but each retake costs roughly $55, and the passed national score still expires 12 months after it was earned. Strategically, retake the failing side promptly rather than letting the clock run.

Distinguishing the Education Buckets

The three education requirements confuse more candidates than any other Indiana topic, so commit this comparison to memory:

Trap alert: A first-term broker does not take the 36-hour CE; the 30-hour post-license course is their first-term obligation. Pick answers that keep these buckets separate. If a question stacks "90 + 36" for a new broker, it is testing whether you know the post-license course stands in for CE in the first term.