Free Indiana Real Estate Broker State-Specific Examination Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Indiana Real Estate Broker State-Specific Examination practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1Seven members attend a properly called Indiana Real Estate Commission meeting. How many affirmative votes are required for the commission to take binding action?

   1. A. Three
   2. B. Four
   3. C. Five
   4. D. Seven

   Answer: B

   Explanation: IC 25-34.1-2-3 states, "A majority vote of all members present at a meeting is necessary to bind the commission." With seven present, four votes are required.

   Reference: Creator: PrintServer210 — IC 25-34.1-2-3(c)

2. 2A commercial hotel in Indiana regularly rents rooms for short stays. Which rental period falls within the licensing exemption stated in IC 25-34.1-3-2?

   1. A. A period of less than thirty days
   2. B. A period of exactly ninety days
   3. C. Any period shorter than one year
   4. D. Only a period of one day

   Answer: A

   Explanation: IC 25-34.1-3-2 exempts "rental, for periods of less than thirty (30) days, of rooms, lodging, or other accommodations" by a commercial hotel, motel, tourist facility, or similar establishment that regularly furnishes them.

   Reference: Creator: PrintServer210 — IC 25-34.1-3-2

3. 3An Indiana associated broker's business card displays the broker's name. What other name must be clearly visible?

   1. A. The associated broker's broker company
   2. B. The county recorder
   3. C. The closing title company
   4. D. The mortgage lender

   Answer: A

   Explanation: 876 IAC 8-1-8 requires such advertising to "contain the name of the broker company with whom the broker is associated" and makes the company name clearly visible.

   Reference: Title 876, ARTICLE 8. OPERATION OF BROKER COMPANIES AND OTHER PROVISIONS CONCERNING REAL ESTATE PRACTICE | IARP — 876 IAC 8-1-8(a)

4. 4An Indiana broker works with a prospective buyer for compensation, and there is no written agreement stating otherwise. What relationship does Indiana law presume?

   1. A. The broker represents the buyer
   2. B. The broker represents only the seller
   3. C. The broker is automatically a limited agent
   4. D. No agency can exist until closing

   Answer: A

   Explanation: IC 25-34.1-10-9.5 states, "A licensee has an agency relationship with, and is representing, the individual with whom the licensee is working unless" a statutory exception applies.

   Reference: Creator: PrintServer210 — IC 25-34.1-10-9.5(a)

5. 5For how long must an Indiana listing or selling broker retain a copy of the detailed closing statement?

   1. A. Two years
   2. B. Three years
   3. C. Five years
   4. D. Seven years

   Answer: C

   Explanation: 876 IAC 8-2-3 requires that "The listing and selling broker shall retain copies of such statements for at least five (5) years."

   Reference: Title 876, ARTICLE 8. OPERATION OF BROKER COMPANIES AND OTHER PROVISIONS CONCERNING REAL ESTATE PRACTICE | IARP — 876 IAC 8-2-3

6. 6During an Indiana Real Estate Commission investigation, a broker refuses access to brokerage records the commission requests. Which commission power directly applies?

   1. A. Inspect the broker's records
   2. B. Set the county's recording fee
   3. C. Issue a property tax assessment
   4. D. Approve the lender's underwriting

   Answer: A

   Explanation: IC 25-34.1-2-5 authorizes the commission to "inspect the records of a licensee." That power directly controls the requested brokerage records.

   Reference: Creator: PrintServer210 — IC 25-34.1-2-5

7. 7An unlicensed person completes three separate Indiana transactions that each require a broker license and earns a fee on each. For enforcement purposes, how are the transactions treated?

   1. A. As one violation because they occurred in one year
   2. B. As one violation for each separate transaction
   3. C. As no violation if the fees are later refunded
   4. D. As a single violation only if the properties share an owner

   Answer: B

   Explanation: IC 25-34.1-6 states, "Each transaction constitutes a separate offense." Thus the three transactions are treated separately.

   Reference: Creator: PrintServer210 — IC 25-34.1-6, unlicensed practice

8. 8Before an Indiana broker places a for-sale sign on property, whose written consent is required?

   1. A. The owner or the owner's authorized agent
   2. B. The county assessor or township trustee
   3. C. The buyer or the buyer's lender
   4. D. The title insurer or closing agent

   Answer: A

   Explanation: 876 IAC 8-1-8(f) prohibits placing a sign or advertising property "without the written consent of the owner or the owner's authorized agent."

   Reference: Title 876, ARTICLE 8. OPERATION OF BROKER COMPANIES AND OTHER PROVISIONS CONCERNING REAL ESTATE PRACTICE | IARP — 876 IAC 8-1-8(f)

9. 9A written agreement says an Indiana licensee will assist a buyer without creating an agency relationship. Which service must the licensee nevertheless provide?

   1. A. Timely present offers and counteroffers
   2. B. Guarantee the buyer's loan approval
   3. C. Determine the seller's minimum price
   4. D. Perform an independent property inspection

   Answer: A

   Explanation: IC 25-34.1-10-9.5(b) requires the licensee to "Be available to receive and timely present offers and counteroffers" while performing the listed nonagency services.

   Reference: Creator: PrintServer210 — IC 25-34.1-10-9.5(b)

10. 10For an out-of-state commercial broker's qualifying Indiana transaction, what record-retention instruction applies to the cooperating Indiana broker?

    1. A. Retain the agreement and records for one year
    2. B. Retain the agreement and records for three years
    3. C. Retain the agreement and records for five years
    4. D. Retain the agreement and records for seven years

    Answer: C

    Explanation: IC 25-34.1-3-11 requires the cooperating Indiana broker to retain the transaction records "for at least five (5) years."

    Reference: Creator: PrintServer210 — IC 25-34.1-3, out-of-state commercial broker records