Indiana Real Estate Practice Exam

Ownership of real property by a married couple in Indiana, unless stated to the contrary in a deed, is presumed to be which of the following?

Which of the following activities does not require a valid Indiana real estate license in order to be compensated?

Carol is an unlicensed assistant at Vivian’s real estate firm. Carol recently worked late nights and weekends to help ensure the successful closing of a difficult transaction. Her work included calling the prospective buyers and encouraging them to accept the counteroffer. The sale went through, largely because of Carol’s efforts. Vivian wants to pay Carol a commission. Which of the following statements is true regarding this situation under Indiana law?

Which of the following must be filed when a nonresident files for an Indiana license?

What must a real estate corporation do to obtain a corporation license in Indiana?

Mandy is an office manager for Woodside Real Estate, a local Indiana real estate firm. Her responsibilities include coordinating the flow of paperwork through the office, preparing forms and advertising copy, and hiring and supervising clerical personnel. Which of the following statements is true regarding Mandy?

Arthur, the owner and principal broker of an Indiana real estate firm, died. At the time of his death, there was $9,500 in the trust/escrow account. Which of the following statements accurately describes how this money should be handled?

Which of the following statements is true regarding an Indiana real estate licensee who has been granted an inactive license?

When are Indiana property taxes due?

Which of the following persons needs a real estate license in the state of Indiana?

Under Indiana agency law, which of the following is considered a true statement?

Selwyn, an Indiana licensee, finds a ready, willing and able buyer for his listing with Sarah. Sarah accepts the buyer’s offer in writing, but then decides she really does not want to sell her home. Sarah withdraws the acceptance. Which of the following statements is true regarding Selwyn in this particular situation?

Which of the following statements is true regarding an exclusive buyer agency contract in Indiana?

Which of the following statements is false regarding the Indiana Real Estate Commission?

Mandy was convicted of a crime that has a direct bearing on her ability practice her real estate duties competently. Which of the following actions is allowed by the Indiana Real Estate Commission?

When may the Indiana Real Estate Commission issue a cease and desist order?

Lupita wishes to receive payment from the Indiana Recovery Fund. What must she do?

For which of the following may the Indiana Real Estate Commission spend interest earned on the recovery fund?

Teddy, an Indiana real estate licensee, embezzled $10,000 from client A, $20,000 from client B, and $25,000 from client C. All three clients received final judgments and payments out of the Indiana Recovery Fund. How much money will each client receive?

Under Indiana real estate law, which of the following does NOT constitute an agency relationship between the licensee and the individual he is working with?

Alice is an Indiana licensee entering into a listing agreement and agency relationship with a seller. What are Alice’s duties?

Lupita is an Indiana licensee who has an agency relationship with a buyer. Which of the following is true regarding this particular relationship?

Under Indiana real estate license law, when does a licensee become a limited agent?

Arthur, an Indiana licensee, has an agency relationship with Gevorg, a seller. Arthur discovered a latent defect in the property. What should Arthur do after he discusses this discovery with Gevorg?

Gevorg, a licensed Indiana salesperson, was describing his client’s listing to Arthur, a buyer’s agent from another brokerage firm. Gevorg told Arthur that the furnace was new, when in fact it was 20 years old. Gevorg’s client (the seller) was unaware of his misrepresentation. Which of the following is true regarding this
situation?

Under Indiana agency law, what may a buyer, exclusively represented by a licensed broker, expect from that licensee?

Which of the following may NOT be placed in an Indiana broker’s trust account?

Which of the following statements is true regarding escrow/trust accounts in the state of Indiana?

Arthur is an Indiana licensee taking an offer to purchase from a buyer with a $1,000 earnest money deposit. Which of the following accurately describes what Arthur should do with the offer and the earnest money?

Mandy is an Indiana licensee who submitted an offer to purchase from a buyer client to the listing agent. The earnest money was a Rolex watch. Which of the following is true regarding this situation?

Arthur is an Indiana broker licensee, not a licensed or certified appraiser. Arthur received a call from a former buyer client requesting an appraisal in connection with a divorce decree. The former client does not want the property to appraise for more
than $180,000, but Arthur knows that most of the properties in that area are worth more than $180,000. What should Arthur do now?

Gevorg is an Indiana licensee. A seller gave Gevorg the survey and owner’s title insurance policy at the time she listed her property with him. When the listing expired, Gevorg did not return the documents, and claimed they were misplaced. Which of the following statements is true regarding Gevorg’s liability in this situation?

Which of the following is a penalty for someone found to be in violation of the incompetent practice portion of the Indiana license law?

Arthur is a tenant, and asks his landlord for an Indiana Residential Real Estate Sales Disclosure Form, but the landlord refuses to complete the document. Which of the following is a true statement regarding this situation?

Nelson owns a four-unit apartment building, and plans to sell it. When must he submit an Indiana Real Estate Sales Disclosure Form to a prospective buyer?

When is a seller in Indiana NOT required to give a buyer a Residential Real Estate Sales Disclosure Form?

Lupita, owner of an Indiana residential property, informs her listing agent that the property was once the site of criminal gang activity. Lupita fears that disclosure of this information to potential buyers could inhibit the sales process, so she instructs
her agent not to disclose the facts. A couple of days later a buyer asks the agent if the property has any psychological affectations. What is the agent’s obligation in this situation?

Vivian is an Indiana real estate broker who has an agency relationship with a seller. Vivian knows that the home has a cracked foundation and that a former owner was brutally murdered in the kitchen. Which of the following must Vivian disclose?

Henry Jan is an Indiana licensee who decides to sell his property without using a broker. Which of the following is true regarding advertising Henry’s property?

Which of the following is a true statement regarding all purchase agreements in Indiana?

Marvin, an Indiana broker, signs a listing agreement with a seller. The agreement contains the following: “If the listed property has not sold after three months from the date of this signing, this agreement will automatically renew for additional three-month periods thereafter until the property is sold.” Which of the following statements is true regarding this situation?

Tim Ackerman, an Indiana licensee, obtains a listing. Which of the following is true regarding his obligations?

Which of the following accurately describes the relationship between the principal broker and the associated licensee, under Indiana real estate law?

From whom may an Indiana licensed salesperson lawfully accept compensation?

Under which of the following circumstances may an Indiana licensee represent and be associated with more than one Indiana principal broker?

Which of the following statements is true regarding an Indiana managing broker with more than one office?

In Indiana, how far back does a normal title search go?

Which of the following is an Indiana licensee entitled to before he or she can be disciplined by the commission?

Which of the following may be imposed on an Indiana licensee, if he or she is found guilty of a real estate violation by the Indiana Real Estate Commission?

Which of the following statements is true regarding a principal broker who participates in a referral service?