Before you read
Test yourself first: 5 questions
Question 1 of 5
In Indiana, who bears ultimate responsibility for the proper maintenance and reconciliation of the firm's trust/escrow account?
Answer: C. 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.
Question 2 of 5
When advertising a property in Indiana, an affiliated broker must:
Answer: B. Advertising must identify the brokerage so the public is not misled into thinking an affiliated broker is acting independently. Blind ads that conceal the firm are prohibited.
Question 3 of 5
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. 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.
Question 4 of 5
A group of Indiana brokers within one firm wants to operate under a team name in their advertising. Which statement is correct?
Answer: B. Teams operating within a brokerage may use a team name, but their advertising must not mislead the public into thinking the team is an independent company. Indiana requires that the licensed brokerage company be disclosed so consumers know which firm is responsible.
Question 5 of 5
An Indiana broker advertises a property she does not have listed and has no authority to market, implying she can sell it. This advertising is best characterized as:
Answer: B. Indiana prohibits false, deceptive, or misleading advertising. Advertising a property the broker has no authority to market misrepresents her relationship to the property and can subject her to discipline by the Commission.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Marketing of a listed property generally requires the owner's authorization. Brokers and brokerage firms are also required to retain transaction and trust-account records for the period set by Commission rules and to make them available for inspection. Proper handling and documentation of escrow and trust funds is essential, since commingling or poor recordkeeping can lead to discipline.
Indiana Advertising & Record-Keeping Rules: FAQs
Is Indiana Advertising & Record-Keeping Rules on the real estate exam?
Yes. State License Law is a scored domain on the Indiana real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Indiana test this differently?
Indiana applies its own license law on top of the national portion. This page covers the Indiana rules specifically, which is what the state section of your exam tests.
