Indiana Real Estate Commission Practice Testing Questions With Answers, Exams of Real Estate Management

Download Indiana Real Estate Commission Practice Testing Questions With Answers and more Exams Real Estate Management in PDF only on Docsity!

Indiana Real Estate Commission

Practice Testing Questions With Answers

Graded A+ Assured Success

What type of agent would have the greatest authority with dealing in Real Estate?

A. Universal B. General C. Special D. All have the same - ✔️ ✔️ A - A universal agent has the authority to do everything themselves that a principal could do. An agent is rarely deemed a universal agent

The Indiana Professional Licensing Agency completes what function for the IREC except:

A. Determines the status of all Licensee applications B. Schedules and provides notice of All IREC meetings, hearings and investigations C. Processes license applications, renewals, and collects all fees D. Maintains official records and files on all licenses and all Licensees - ✔️ ✔️ A - The IREC determines the status of licensees, the Professional Licensing Agency provides administrative services on behalf of the IREC.

An agent receives a low offer on a listing she has. The agent is not required to present it to her sellers because it is low

A. True B. False - ✔️ ✔️ False - Per Indiana law all offers must be presented whether verbal or written.

An individual that is paid to provide services in a real estate transaction whether buying or selling must be licensed

A. True B. False - ✔️ ✔️ True - Any individual providing regulated services for consideration for the buying, and/or the selling of real estate in Indiana must be licensed.

Attorney John is serving as executor of an estate that includes real estate in Indiana. Can John sell the property?

A. True

B. False - ✔️ ✔️ A - Attorneys in the state of Indiana can practice incidental real estate from client to client if real estate is involved.

Choose the best example of a general agent

A. A power of attorney given to transfer title to a boat B. A property manager C. A licensee D. A power of attorney given to a Nephew to handle his Aunts medical situation - ✔️ ✔️ B - A property manager is an agent that can represent a principal in a broad range of matters

Choose the situation that does not have to remain confidential

A. Your seller client has a new job in a nearby city B. Your buyer client is in the middle of a divorce C. Your sellers told you they put new carpet in the house you have listed D. Your seller clients parents live next door - ✔️ ✔️ C - Your client has a new job, or in the middle of a divorce, or the fact that their parents live next door could be deemed as confidential information to your clients. Letting you know they put new carpet in the house would be a benefit to selling and not deemed as confidential

Dual agency and Limited agency in Indiana are the same

A. True B. False - ✔️ ✔️ Limited agency is most common in Indiana. Limited and Dual agency are the same.

Effective July 1 2014, a Commercial broker not residing in Indiana can carry out the functions of an Indiana Broker without being licensed in Indiana as long as he or she can show good standing in their home state and they must properly affiliate themselves with an Indiana Broker.

A. True B. False - ✔️ ✔️ True - A condition for an out of state commercial broker to do business in Indiana without an Indiana license is to provide evidence of good standing in their home state.

In a "Limited Agency Transaction who does an agent represent?

A. Both buyer and seller B. Only the buyer C. Only the person you are designated to represent D. Only the seller - ✔️ ✔️ A - The agent represents both buyer and seller in a "Limited Agency" transaction.

In an "In House" transaction dual agency is always the situation

A. True B. False - ✔️ ✔️ False - In Indiana if the buyer does not have a buyer-broker agreement in place, the buyer is only termed a customer, therefore dual agency would be an impossibility.

In Indiana an agency disclosure form is required for real estate transactions. At what point should this be presented by a licensee?

A. At first substantive contact B. Meeting people at an open house C. When confidential information is conveyed D. Before lending information and advice at a listing appointment - ✔️ ✔️ A - It should be a standard procedure for a licensee to present this form at first substantive contact with prospective clients before confidential information is discussed.

In Indiana when Limited agency is created, the licensee is termed to represent whom?

A. Buyer B. Buyer and Seller C. Neither buyer or seller D. Seller - ✔️ ✔️ B - When a broker represents both a buyer and seller on the same property this is called Limited agency.

In Indiana, the mere discussion of WHAT could establish an agency relationship with a client even if there is no contract formed yet?

A. General discussion with open house attendees B. Answering general questions pertaining to a listing C. Responding to social media inquiries about a property D. Asking questions more specific to a prospective clients needs in housing - ✔️ ✔️ D - When a licensee engages in conversation more specific about someone's needs when it comes to housing this would establish a more involved relationship that would seem to make the licensee act like an agent and convey fiduciary obligations.

Indiana Real estate law provides that in a transaction the "selling agent" represents a buyer or tenant, and the" sellers agent" represents a seller or landlord.

A. True B. False - ✔️ ✔️ A - Two similar terms can designate two different roles by licensees to clients.

A majority vote of a quorum (the minimum required to conduct official business) present at a meeting, could result in official and binding votes by the IREC

A. True B. False - ✔️ ✔️ True - The majority vote of a quorum results in binding decisions.

According to Indiana law, a claimant seeking relief from the Indiana Recovery Fund must be a resident of Indiana

A. True B. False - ✔️ ✔️ False - Although a claimant must have cause due to an Indiana Real estate transaction, the claimant is not required to be a resident of Indiana

Al did not pass the Broker real estate exam that he took over a year ago. Before submitting his application, Al must retake and pass the exam, but he does not have to retake his Pre-licensing education.

A. True B. False - ✔️ ✔️ B - If an applicant does not pass within 1 year of completing the Pre licensure education that individual is required to retake Pre licensure education and retake and pass the exam before they can apply for a broker's license.

Jane is an unlicensed assistant to Mary and helps Mary daily. What act is Jane NOT restricted from doing for Mary?

A. Explain contracts and any relevant forms to a client B. Give general information about listings limited to price, address, and directions to a property C. Discuss commission fees D. Be involved in Telemarketing - ✔️ ✔️ B - An unlicensed assistant is restricted from the duties of a licensee in most cases. However giving general information such as the price of a property, directions, and the address are not violations of Indiana law.

Lead based paint disclosures are required for properties built after 1978

A. True B. False - ✔️ ✔️ False - Properties built before 1978 require lead base paint disclosure forms.

Linda provides broker price opinions (BPO's) and charges 150.00 each. Is Linda required to follow USPAP guidelines when providing BPO's? A. Yes B. No - ✔️ ✔️ A - All licensees are required to follow USPAP standards when providing a BPO.

Martha wants to list her house and has interviewed several real estate firms to do so. What action creates a "Seller" agency relationship between Martha and a Broker?

A. Martha signs a consumer guide to agency relationship

B. Martha signs a buyer-broker agreement C. Martha signs a listing agreement with a brokerage D. Martha expresses she would like to work with a brokerage - ✔️ ✔️ C - Martha entered into an agency relationship as a "seller" when she signed a listing agreement to market her property through a brokerage.

Seller Mary signs a listing agreement with broker Bill and his firm. Mary would be termed Bill's principal.

A. True B. False - ✔️ ✔️ True - Since Mary contracted with Bill to sell her house. Mary would be Bills principal and Bill is the agent.

Steve learned while listing Betty's property her and her husband are in the middle of a divorce. What is Steve's fiduciary duty regarding this fact about his clients?

A. Steve must keep this fact confidential for 2 years after learning about it B. Steve has no duty to keep this fact confidential C. Steve must tell his prospective buyers this fact D. Steve must keep this confidential even if he does not sell the house and their agency relationship has ended. - ✔️ ✔️ D - Even if an agency relationship ends or their relationships ends, Steve must keep this information confidential forever. Confidentiality never ends unless asked to divulge in a court of law.

Sub-agency is a recognized agency relationship in Indiana

A. True B. False - ✔️ ✔️ False - The IREC ( Indiana Real Estate Commission) and the Legislature have worked together to eliminate this confusing type of agency and is now prohibited

The Indiana Real Estate Commission consists of 12 members selected by a Congressional Representative relative to their District

A. True B. False - ✔️ ✔️ False - IREC members are appointed by the Governor for 4 year terms.

.

What is another term to describe Dual or Limited agency?

A. Dual agency B. Undivided loyalty C. Undisclosed dual agency

D. Limited loyalty - ✔️ ✔️ B - The fiduciary duty that is given up by both buyer and seller in a dual agency transaction is Undivided Loyalty.

What should you do if a seller refuses to sign an agency disclosure form?

A. Let them know because they wouldn't sign the form they can expect less for their home B. Let the seller know you will refer them to another agent C. Document the fact and date your documentation D. Refuse to take the listing - ✔️ ✔️ C - You can't force anyone to sign anything. If anyone refuses to sign an agency disclosure form merely document that they refused to sign it and date your documentation.

What type of agent do you think a broker is in the managing broker - agent relationship?

A. Universal B. Special C. General D. Limited - ✔️ ✔️ C - Agents are considered to be general agents to their managing brokers. An agent would be a special agent to their client..

When Which individual requires a real estate license?

A. Tax official conducting a tax sale B. An agent selling a commercial property C. Linda who owns and rents less than 12 units on her property D. Bill who was the executor of his mothers estate - ✔️ ✔️ B - Tax officials, executors of estates, persons renting or owning 12 units or less do not need a real estate license.

Which information would not be confidential to a client?

A. A buyer's price range B. Reasoning for wanting to sell C. An area of interest to a buyer that they might like to search for a home D. What date a seller must be out of the home - ✔️ ✔️ C - The town a buyer might like to live is most likely not considered confidential. Price, reasons for selling, and when they need to be out of their house could be deemed confidential and could have impact on a real estate transaction.

an agency disclosure form is signed, this creates a binding agency relationship.

A. True B. False - ✔️ ✔️ False - There is no binding agreement formed with the signing of an agency disclosure form. However, there would be a binding agreement if someone were to sign a buyer broker agreement.

When an agency relationship is formed in Indiana with a seller, what form is used?

A. Indiana agency form B. Seller disclosure form C. Listing agreement D. Buyer broker form - ✔️ ✔️ C - When a seller and a broker sign a listing agreement this creates an agency relationship. (Seller agency)

Which action would be appropriate for an agent to do?

A. Fill out a listing agreement form to list a property B. Drafting a Deed C. Give a client legal advice pertaining to the sale of real estate D. Draft a Land Contract for a buyer and a seller - ✔️ ✔️ A - Drafting a Land Contract, Drafting a Deed, and Giving Clients Legal Advice are all the unauthorized practice of law. Filling in a pre-printed listing agreement is normal activity for an agent to perform.

Which does the Indiana Real Estate Commission not have authority over?

A. Inspect the records of licensees B. Administer and enforce Indiana license law C. Approve CE courses of study D. Resolve licensee disputes over fees - ✔️ ✔️ D - The IREC does not have authority over licensees fees

Which fiduciary duty is owed to a client but not owed to a customer?

A. Knowledge B. Fairness C. Obedience D. Honesty - ✔️ ✔️ C - Obedience, Undivided Loyalty, Disclosure, Confidentiality, Accounting and Reasonable Care are always owed to a client. However when someone is only represented as a customer fairness and honesty are a must.

The IREC was formed to safeguard the public by endorsing and promoting a higher standard of knowledge and ethical practice from licensees.

A. True B. False - ✔️ ✔️ True - This is the Commissions primary duty