Indiana Real Estate Licensure: Correctly
Solved Exam *Q&A* (100% Correct)
2025/2026 |VERIFIED|
Explain the concept of agency relationships in real estate and list the responsibilities of a fiduciary agent.
A fiduciary agent is bound by duties of loyalty, obedience, disclosure, confidentia...
Indiana Real Estate Licensure: Correctly
Solved Exam *Q&A* (100% Correct)
2025/2026 |VERIFIED|
Explain the concept of agency relationships in real estate and list the responsibilities of a fiduciary agent.
A fiduciary agent is bound by duties of loyalty, obedience, disclosure, confidentiality, accounting,
and reasonable care in representing a client.
Describe the primary purpose of the Indiana Real Estate Commission and its role in licensing.
The Indiana Real Estate Commission oversees real estate licensure, enforces real estate laws, and
ensures compliance with professional standards.
Define the term "license law" and its purpose in regulating real estate practices in Indiana.
License law establishes requirements for obtaining and maintaining real estate licenses to protect
the public from unethical practices.
What is the legal process for terminating a listing agreement before its expiration in Indiana?
Termination requires mutual consent or evidence of a breach by one party.
Explain the concept of earnest money forfeiture in Indiana real estate transactions.
If the buyer defaults, earnest money is typically forfeited to the seller as compensation unless
specified otherwise in the contract.
What is required for a real estate licensee to represent a buyer in a transaction in Indiana?
The licensee must sign a written buyer agency agreement with the client.
Describe the role of a property manager and their licensure requirements in Indiana.
Property managers oversee rental operations and must hold a real estate broker license unless
exempted.
1
,How are real estate commissions determined and paid in Indiana?
Commissions are negotiable, established in the agency agreement, and paid from the proceeds of
the sale.
What are the requirements for renewing a real estate license in Indiana?
Licensees must complete the renewal application, meet continuing education requirements, and
pay the renewal fee.
Explain the purpose of an open listing and its implications for brokers in Indiana.
An open listing allows multiple brokers to sell the property, with the commission going to the
broker who secures the buyer.
What is the Indiana law on fair housing, and how does it apply to real estate professionals?
Indiana fair housing law prohibits discrimination based on protected classes, ensuring equal
housing opportunities.
How are real estate escrow accounts reconciled in Indiana?
Accounts must be reconciled monthly, with accurate records maintained for all transactions.
What happens if a real estate licensee fails to disclose a dual agency relationship in Indiana?
Failure to disclose may result in disciplinary actions, legal liability, or loss of license.
Describe the process of evicting a tenant under Indiana law.
Eviction requires proper notice, filing a complaint in court, and obtaining a judgment for
possession.
What are the guidelines for hosting open houses as a real estate licensee in Indiana?
Licensees must obtain seller consent, ensure safety, and avoid providing false or misleading
information to potential buyers.
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, How are property taxes assessed and prorated at closing in Indiana real estate transactions?
Property taxes are prorated based on the closing date, with the seller typically responsible for
taxes up to that point.
What is the penalty for failing to comply with continuing education requirements in Indiana?
Non-compliance may result in license suspension, revocation, or additional penalties imposed by
the Real Estate Commission.
What is the minimum age requirement to obtain a real estate license in Indiana?
The applicant must be at least 18 years old.
Explain the continuing education requirements for maintaining an active real estate license in Indiana.
Licensees must complete 12 hours of continuing education annually.
What must be included in a listing agreement for it to be legally enforceable in Indiana?
A listing agreement must include the property description, listing price, duration, commission
terms, and signatures of all parties.
Describe the difference between a broker and a managing broker in Indiana.
A managing broker supervises other brokers, oversees transactions, and is responsible for the
operation of the brokerage.
Explain the process of handling earnest money deposits in Indiana real estate transactions.
Earnest money must be deposited into a trust or escrow account within two banking days of
receipt.
What is dual agency, and what are the disclosure requirements for it in Indiana?
Dual agency occurs when a broker represents both buyer and seller; written consent from both
parties is required.
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