Before you read
Test yourself first: 5 questions
Question 1 of 5
An Indiana broker who allows their license to lapse and continues practicing real estate is:
Answer: B. Conducting brokerage activity without a current, active license is unlicensed practice in Indiana and can lead to penalties and enforcement by the Commission/PLA.
Question 2 of 5
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. 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.
Question 3 of 5
Which of the following is most likely to be grounds for discipline by the Indiana Real Estate Commission?
Answer: B. Commingling client trust funds with personal or operating money is a serious violation and a common basis for disciplinary action. The other choices describe proper, lawful conduct.
Question 4 of 5
Disciplinary actions against an Indiana real estate broker, such as suspension or revocation, are imposed by:
Answer: B. Authority to discipline licensees, including suspension or revocation, rests with the Indiana Real Estate Commission, administered through the Professional Licensing Agency, not with private trade or MLS boards.
Question 5 of 5
Which Indiana agency is responsible for receiving and investigating complaints against real estate brokers and bringing disciplinary actions before the Indiana Real Estate Commission?
Answer: A. In Indiana, the Professional Licensing Agency (PLA) provides administrative and investigative support for the Indiana Real Estate Commission, which is the licensing and disciplinary authority. Private trade associations such as a local board of REALTORS enforce their own codes of ethics but have no statutory licensing or disciplinary power, and the Department of Insurance and county recorder are unrelated to broker discipline.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
After investigation and due process, it may discipline a broker or managing broker through censure, probation, suspension, revocation, civil penalties, or required education. Common grounds include fraud, misrepresentation, dishonest or incompetent dealing, and mishandling of client trust funds. Indiana also maintains a Recovery Fund that can reimburse consumers who obtain an unsatisfied court judgment against a licensee, with payouts subject to statutory limits.
Indiana License Discipline & Enforcement: FAQs
Is Indiana License Discipline & Enforcement 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.
