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Real Estate Indiana Broker Exam
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Dan Sage is an Indiana principal broker who becomes incapacitated and dies. Which of the following is a true statement regarding the associates who worked for him? - ✔️ ✔️ Associates may complete any business that is under contract for a maximum of 90 days, but they may not take any new business.
For which of the following may the Indiana Real Estate Commission spend interest earned on the recovery fund? - ✔️ ✔️ The commission may spend the interest earned for information concerning the commission's activities.
From whom may an Indiana licensed salesperson lawfully accept compensation? - ✔️ ✔️ A licensee may accept lawful compensation from her principal broker.
George is a limited agent in the state of Indiana. This designation has limitations regarding George's conduct and representation of his clients. Which of the following actions is in violation of those limitations? - ✔️ ✔️ George would be in violation of limited agency if he told the buyer that the property appears to be overpriced and the seller would probably take less.
Alice is an Indiana licensee entering into a listing agreement and agency relationship with a seller. What are Alice's duties? - ✔️ ✔️ Alice must exercise reasonable care and skill.
An Indiana Real Estate Sales Disclosure Form would be required in which of the following situations? - ✔️ ✔️ The document would be required for the transfer of real estate to a buyer by a relocation company holding title to the property.
An unbroken chain of title must be established for what period of time in order to establish a "marketable title" in Indiana? - ✔️ ✔️ 50 years.
Anne successfully completed her Indiana prelicense real estate education requirement on October 1, 2003. How long does she have to take the state exam before having to retake the prelicense course? - ✔️ ✔️ Anne has one year from the time she completed the prelicense course to take the exam.
Arthur is a tenant, and asks his landlord for an Indiana Residential Real Estate Sales Disclosure Form, but the landlord refuses to complete the document. Which of the
following is a true statement regarding this situation? - ✔️ ✔️ The landlord is not required to furnish the form to Arthur, the tenant.
Arthur is an Indiana broker licensee, not a licensed or certified appraiser. Arthur received a call from a former buyer client requesting an appraisal in connection with a divorce decree. The former client does not want the property to appraise for more than $180,000, but Arthur knows that most of the properties in that area are worth more than $180,000. What should Arthur do now? - ✔️ ✔️ Arthur may agree to the appraisal, but he may not agree to a predetermined value.
Arthur is an Indiana licensee taking an offer to purchase from a buyer with a $1, earnest money deposit. Which of the following accurately describes what Arthur should do with the offer and the earnest money? - ✔️ ✔️ Arthur should communicate the offer to the listing agent, and submit the earnest money with the offer for deposit by the listing broker after acceptance.
Arthur, the owner and principal broker of an Indiana real estate firm, died. At the time of his death, there was $9,500 in the trust/escrow account. Which of the following statements accurately describes how this money should be handled? - ✔️ ✔️ The Indiana Real Estate Commission should appoint a successive trustee.
At the end of the state's fiscal year, the Indiana Recovery Fund has a balance of more than $750,000. The amount in excess of $750,000 will be paid to which of the following?
- ✔️ ✔️ The excess amount is paid to the Indiana state general fund.
Carol helps the Chaparyan family negotiate for their dream home. The Chaparyans then ask Carol for help in securing their mortgage. Carol knows a lender that pays a referral fee. Should she refer her buyers to this lender? - ✔️ ✔️ No, because an Indiana licensees may only receive compensation from her broker.
A listing agreement establishes an agency relationship between? - ✔️ ✔️ The principal broker and the seller.
A net listing is legal in Indiana under which of the following circumstances? - ✔️ ✔️ Net listings must show a maximum amount of commission to be legal.
A partnership received its first Indiana license renewal on July 1, 2018. When will the license expire (unless renewed earlier)? - ✔️ ✔️ The partnership's license will expire in 36 months.
A seller listed her home with Leslie, an Indiana licensee, for $90,000. Leslie in turn told a buyer's agent from another brokerage firm to have his buyer submit a low offer, because her sellers are desperate to move. The buyer subsequently offers $80,000 and Leslie's sellers accept. Which of the following is true regarding Leslie's actions? - ✔️ ✔️ Leslie is in violation of the agency relationship under Indiana real estate law.
Josie is an Indiana real estate licensee who lists the home of a recently deceased elderly owner who died in the home. What disclosure obligation applies to Josie? - ✔️ ✔️ Josie is not required to disclose any knowledge of the death
Leslie is an Indiana licensee. Part of her marketing effort includes an offer to provide and pay for a home warranty policy for sellers if they list their home with her. Which of the following statements is true regarding this practice? - ✔️ ✔️ Leslie must provide written disclosure to all parties at the time of any and all offers or acceptance of an offer.
Lester, an Indiana broker, received a check for the earnest money from a buyer. He deposited that money in his own interest bearing checking account over the weekend. Which of the following terms accurately describes Lester's actions? - ✔️ ✔️ Commingling
Lupita is an Indiana licensee who has an agency relationship with a buyer. Which of the following is true regarding this particular relationship? - ✔️ ✔️ Lupita must treat all sellers honestly.
Lupita wishes to receive payment from the Indiana Recovery Fund. What must she do?
- ✔️ ✔️ Lupita must obtain a final judgment in court against the licensee.
Lupita, owner of an Indiana residential property, informs her listing agent that the property was once the site of criminal gang activity. Lupita fears that disclosure of this information to potential buyers could inhibit the sales process, so she instructs her agent not to disclose the facts. A couple of days later a buyer asks the agent if the property has any psychological affectations. What is the agent's obligation in this situation? - ✔️ ✔️ The agent should tell the buyer that the seller does not wish to make any representations regarding psychological affectations.
Mandy is an Indiana broker who has an agency relationship with a buyer. Which of the following is true regarding Mandy's responsibilities to the buyer? - ✔️ ✔️ Mandy should advise the buyer if the listing price of the home is not realistic.
Mandy is an Indiana licensee who has an agency relationship with Vivian, a buyer. Another buyer Mandy represents is interested in viewing the same property Vivian would like to see. Which of the following is true regarding Mandy in this situation? - ✔️ ✔️ Mandy may show the property to the second buyer without first informing the first buyer, Vivian.
Mandy is an Indiana licensee who submitted an offer to purchase from a buyer client to the listing agent. The earnest money was a Rolex watch. Which of the following is true regarding this situation? - ✔️ ✔️ The offer of a Rolex watch could be accepted, but only if the seller is informed of the nature of the deposit prior to acceptance.
Mandy is an office manager for Woodside Real Estate, a local Indiana real estate firm. Her responsibilities include coordinating the flow of paperwork through the office, preparing forms and advertising copy, and hiring and supervising clerical personnel. Which of the following statements is true regarding Mandy? - ✔️ ✔️ Mandy is exempt from real estate licensure.
Mandy was convicted of a crime that has a direct bearing on her ability to practice her real estate duties competently. Which of the following actions is allowed by the Indiana Real Estate Commission? - ✔️ ✔️ The commission must require Mandy to attend a hearing on the matter before any action may be taken
Mandy, a licensed broker, tells a lender that the sales price of a property is something above its actual sales price in order to assist the buyer in obtaining a larger loan. Which of the following statements is true regarding Mandy's action? - ✔️ ✔️ Mandy has violated Indiana real estate law, and can be disciplined for material deception.
Marvin, an Indiana broker, signs a listing agreement with a seller. The agreement contains the following: "If the listed property has not sold after three months from the date of this signing, this agreement will automatically renew for additional three-month periods thereafter until the property is sold." Which of the following statements is true regarding this situation? - ✔️ ✔️ The listing agreement is illegal, because it automatically renews.
Nelson owns a four-unit apartment building, and plans to sell it. When must he submit an Indiana Real Estate Sales Disclosure Form to a prospective buyer? - ✔️ ✔️ Nelson must submit the form before an offer to purchase the four-unit apartment building is accepted.
Nelson wishes to obtain an Indiana reciprocal real estate license. Which of the following is true regarding this situation? - ✔️ ✔️ Nelson may qualify because his original state has real estate laws similar to Indiana.
Ownership of real property by a married couple in Indiana, unless stated to the contrary in a deed, is presumed to be which of the following? - ✔️ ✔️ tenancy by the entirety.
Peter is an Indiana licensee who has an agency relationship with the Noonan family. Which of the following may he disclose without informed written consent? - ✔️ ✔️ Peter may disclose material facts regarding the Noonan property.
Peter offered to help his neighbor, Claire, sell her house 3 weeks before he began his prelicense real estate course. Claire agreed to pay Peter a 5 percent commission. Claire accepted an offer on the house while Peter was enrolled in the prelicense course, and the property closed the day before Peter took the state licensing exam. Claire changed her mind, however, and refused to pay Peter the 5 percent commission. May
Vivian is interested in seeing a house listed with Big Tree Realty, but Vivian does not wish to enter into an agency relationship with an Big Tree agent. Under which of the following circumstances may an Big Tree agent show Vivian the property? - ✔️ ✔️ Vivian may view the property, but only if she declines the agency relationship in writing before seeing the property.
Vivian listed her home for sale with a broker on February 1. The listing agreement was to expire in five months. In April, however, Vivian decided to take her home off the market. Is this allowed? - ✔️ ✔️ Yes. Vivian may withdraw the broker's authority to sell the property, but she may be liable for some expenses.
Vivian received a call from her neighbors. Their home is listed with another broker, but the neighbors are very dissatisfied and they want Vivian to tell them how to get out of the listing agreement so they may list their home with Vivian. What is Vivian's course of action? - ✔️ ✔️ Vivian must inform her neighbors that she cannot discuss the current listing situation, and any request for the discussion of future services must be put in writing.
Vivian's listing agreement with her seller expired, and now the seller has listed her home with a different brokerage firm. Soon after, however, a buyer working with Vivian decides he is interested in said property. Which of the following statements is true based on this information? - ✔️ ✔️ Vivian may not disclose confidential information to the buyer regarding the seller.
What is the maximum amount that may be paid from the Indiana Real Estate Recovery fund for each violation? - ✔️ ✔️ $20,
What is the minimum age for an individual to be allowed to enter into a legally enforceable contract (with no exceptions) in Indiana? - ✔️ ✔️ 18
What must a real estate corporation do to obtain a corporation license in Indiana? - ✔️ ✔️ The corporation must have at least one broker licensed in Indiana who is a shareholder.
What type of agency relationship is created when there is a listing contract between an Indiana broker and a seller? - ✔️ ✔️ Special agency relationship
When are Indiana property taxes due? - ✔️ ✔️ May 10 and November 10
When is a seller in Indiana NOT required to give a buyer a Residential Real Estate Sales Disclosure Form? - ✔️ ✔️ A seller is NOT required to give the disclosure form to a buyer when the property is zoned commercial.
When may the Indiana Real Estate Commission issue a cease and desist order? - ✔️ ✔️ When the person solicits or accepts enrollment of real estate students in a school not officially approved by the commission.
Which of following is not required to hold a real estate license? - ✔️ ✔️ Anyone reselling a mobile home not on a permanent foundation is NOT required to hold a real estate license.
Which of the following is a true statement regarding advertising requirements in the state of Indiana? - ✔️ ✔️ Advertising that carries a licensee's name must also contain the name of the principal broker or firm.
Which of the following is a true statement regarding all purchase agreements in Indiana? - ✔️ ✔️ Purchase agreements in Indiana must be prepared in quadruplicate.
Which of the following is accurately described as an Indiana listing agreement that provides for the listing broker to be compensated, regardless of who sells the property?
- ✔️ ✔️ Exclusive-right-to-sell listing.
Which of the following is an Indiana licensee entitled to before he or she can be disciplined by the commission? - ✔️ ✔️ The licensee is entitled to a hearing before the commission.
Which of the following is NOT grounds for licensee disciplinary action? - ✔️ ✔️ Agreeing with a seller to accept a listing for more than the normal commission rate.
Which of the following is one of the guidelines that a managing broker must follow in Indiana? - ✔️ ✔️ Managing brokers are responsible for the actions of licensees and broker-salespersons associated with them.
Which of the following is required to be a member of the Indiana Real Estate Commission? - ✔️ ✔️ The appointee serves at the discretion of the governor
Which of the following is the law that requires Indiana real estate contracts to be in writing in order to be enforceable? - ✔️ ✔️ Statute of frauds.
Which of the following is true about an Indiana licensee who represents a seller exclusively? - ✔️ ✔️ The licensee may show alternative properties not owned by the seller to prospective buyers.
Which of the following is true regarding "For Sale" signs in real estate advertising? - ✔️ ✔️ "For Sale" signs may be placed on the property for sale only with the written consent of the seller or the seller's authorized agent.
Which of the following statements is true regarding earnest monies received in connection with a transaction in Indiana? - ✔️ ✔️ Earnest monies must be deposited into the listing broker's trust/escrow account within two banking days after acceptance of the offer.
Which of the following statements is true regarding escrow/trust accounts in the state of Indiana? - ✔️ ✔️ The escrow/trust accounts may only contain funds that belong to others.
Which of the following statements is true regarding in-house agency relationships in the state of Indiana? - ✔️ ✔️ Two agents in the same office may, under Indiana law, represent two different clients.
Which of the following statements is true regarding Indiana certified appraisers and the Residential Real Estate Sales Disclosure Form? - ✔️ ✔️ An appraiser is entitled to a copy of the form if the appraisal is for financing purposes.
Which of the following statements is true regarding the Indiana Real Estate Recovery Fund? - ✔️ ✔️ Licensees may be assessed a surcharge at the time of his or her license renewal if the fund balance is less than $450,000.
Which of the following statements is true regarding the Indiana Residential Real Estate Sales Disclosure Form? - ✔️ ✔️ The form is to be completed by the seller and given to the purchaser prior to acceptance of an offer.
Which of the following would violate real estate advertising requirements? - ✔️ ✔️ A licensee placed an ad in a church newsletter without the name of the principal broker or firm.
Who has the primary responsibility for earnest monies submitted with an accepted offer in the state of Indiana? - ✔️ ✔️ The listing managing broker is responsible.
Who is the local official that records deeds for the transfer of real property in the county? - ✔️ ✔️ The county recorder.
Who selects the members of the Indiana Real Estate Commission? - ✔️ ✔️ The governor of Indiana selects the commission members.
Which of the following activities does not require a valid Indiana real estate license in order to be compensated? - ✔️ ✔️ Performing a written home inspection does not require a valid Indiana real estate license.
Which of the following does NOT qualify as a "psychologically affected property?" - ✔️ ✔️ A dwelling where firearms had been discharged by party-goers is NOT considered to represent a psychologically affected property.
Which of the following duties may an unlicensed real estate assistant NOT perform? - ✔️ ✔️ an unlicensed assistant may NOT explain contract documents to prospective buyers.
