15 free questions from the Cinna RE Indiana real estate exam bank (90 in the app). Tap an answer to check it. The rationale opens right away.
After completing the required pre-licensing education, what is the next major step an Indiana broker applicant must take?
Answer: A. Pass the Indiana broker licensing examination
An applicant must pass the broker licensing examination after finishing the 90-hour pre-licensing course; the exam is a prerequisite to obtaining the license.
In Indiana, who bears ultimate responsibility for the proper maintenance and reconciliation of the firm's trust/escrow account?
Answer: C. The managing broker of the company
Indiana licenses entry-level agents as brokers, but they must work under a managing broker. The managing broker is accountable for the firm's escrow account, including proper deposit, record-keeping, and reconciliation of client funds.
In addition to the state residential sales disclosure form, what federally mandated disclosure must an Indiana seller provide for a home built before 1978?
Answer: C. A lead-based paint disclosure and the EPA-approved information pamphlet
For target housing built before 1978, federal law (Title X) requires sellers to disclose known lead-based paint and hazards, provide any available records, deliver the EPA pamphlet, and allow the buyer a period to conduct a lead inspection. This applies in Indiana alongside the state disclosure form.
Which Indiana agency, operating through the Professional Licensing Agency, regulates real estate licensees and adopts the rules governing the profession?
Answer: A. The Indiana Real Estate Commission
The Indiana Real Estate Commission is the licensing and rule-making authority for real estate brokers, and its licensing functions are administered through the Indiana Professional Licensing Agency (PLA). Private trade groups such as the Indiana Association of REALTORS do not license or discipline licensees.
A first-time Indiana broker is approaching the end of the initial license period. Which post-licensing requirement is unique to that first renewal cycle?
Answer: C. A completed post-licensing education course in addition to standard renewal
Indiana requires newly licensed brokers to complete a dedicated post-licensing education course during their first license period, on top of meeting the standard renewal requirements. This first-period post-licensing obligation is separate from ongoing continuing education required for later renewals.
Beyond the federal Fair Housing Act's protected classes, the Indiana civil rights/fair housing framework most notably extends protection to which additional characteristic in housing?
Answer: C. Ancestry, in addition to the federally protected classes
Indiana's fair housing protections mirror the federal protected classes and additionally include ancestry. Indiana does not add political affiliation, credit tier, or pet ownership as protected characteristics. Licensees must comply with both the federal Fair Housing Act and Indiana's state additions.
An Indiana managing broker assigns one licensee in the firm to represent the seller and a different licensee in the same firm to represent the buyer in a transaction. This arrangement is known as:
Answer: A. Designated agency (appointed agency)
Indiana law allows designated (appointed) agency, in which a managing broker appoints different individual licensees within the same firm to represent each party. Each appointed licensee may act as a single agent for the party to whom they are assigned, with appropriate consent.
An Indiana broker places an advertisement that lists only a personal cell number and the broker's name, with no reference to the brokerage company. Under Indiana advertising rules, this ad is:
Answer: B. Improper, because advertising must identify the brokerage company the broker works under
Indiana requires that real-estate advertising clearly identify the brokerage company under which the broker is licensed. Because entry agents are brokers working under a managing broker, an ad cannot be presented as if the individual operated independently of the firm.
Under Indiana's agency law, when a brokerage represents a client (a buyer or seller), the licensee owes that client the full set of fiduciary-type duties. Which duty is owed to a CLIENT but generally NOT to a customer?
Answer: C. Loyalty and confidentiality of the client's information
A client is the party a licensee represents, and is owed the full duties of an agency relationship, including loyalty and confidentiality. A customer is a party the licensee deals with but does not represent; customers are still owed honesty, fair dealing, and disclosure of known adverse material facts, but not loyalty or protection of confidential information.
Indiana law requires the seller of most residential real estate to provide a particular document to the buyer before the buyer accepts the seller's offer or makes one. What is that required document?
Answer: A. A seller's residential real estate sales disclosure form covering the property's known condition
Indiana's sales disclosure law requires sellers of most residential property (generally one-to-four unit dwellings) to complete and deliver a state-specified residential real estate sales disclosure form disclosing the known condition of major systems and components. This is separate from federal lead-based paint requirements, which also apply to pre-1978 housing.
An Indiana broker is convicted of a felony involving fraud unrelated to a specific real estate transaction. With respect to the broker's license, the Commission may:
Answer: B. Discipline the licensee, as such a conviction is grounds for action
Conviction of a crime involving fraud, dishonesty, or moral turpitude is independent grounds for disciplinary action against a real estate license in Indiana, even when the crime did not arise out of a real estate transaction. The Commission may act on its own based on the conviction and is not required to wait for a private complaint.
An Indiana broker lets the license expire and fails to renew on time. Which statement best describes the consequence under Indiana practice?
Answer: C. The license lapses and the licensee may not lawfully practice until it is reinstated
When an Indiana broker fails to renew, the license lapses and the licensee cannot lawfully conduct licensed real estate activity until the license is reinstated, which typically requires curing CE deficiencies and paying applicable fees. Lapsing does not upgrade the license, and reinstatement remains available within the allowed window.
An Indiana broker uses earnest money held in escrow to temporarily cover the firm's payroll, intending to replace it before closing. This act is BEST described as:
Answer: B. Conversion, the unauthorized use of client funds
Using client trust funds for the broker's own purposes is conversion, the misappropriation of money belonging to another. It is a serious violation regardless of intent to repay and is grounds for license discipline by the Commission.
Indiana brokers must retain transaction and account records, including documentation of trust funds, for a minimum period. The PRIMARY reason for this requirement is to:
Answer: B. Allow the Commission to audit and verify proper handling of client funds
Indiana requires brokers to keep records of transactions and trust-account activity so the Real Estate Commission and Professional Licensing Agency can audit them and confirm that client money was handled lawfully. Record retention protects consumers and supports enforcement.
An out-of-state licensee wants to become licensed in Indiana based on an existing license from another state. Which approach reflects how Indiana handles out-of-state applicants?
Answer: D. Indiana may license qualified out-of-state applicants who meet its requirements, often recognizing comparable experience or education
Indiana provides a pathway for out-of-state licensees to obtain an Indiana broker license by applying and meeting Indiana's requirements, with recognition of comparable qualifications where appropriate. Licensure is never fully automatic, but qualified applicants from other states are not barred.
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