Page 1 of 133
Indiana Real Estate Law Exam ACTUAL EXAM COMPLETE
QUESTIONS AND DETAILED SOLUTIONS LATEST UPDATE THIS
YEAR-JUST RELEASED
SUMMARIZED EXAM COVERAGE (ALL CONTENTS COVERED)
Indiana real estate law exam focuses on:
• Licensing laws and IREC disciplinary authority
• Agency types, duties, and required disclosures
• Contract formation, contingencies, and breach remedies
• Deeds, ownership forms, liens, and recording laws
• Earnest money rules and escrow account compliance
• Seller disclosure obligations and material defect handling
• Fair housing laws and prohibited discriminatory practices
• Closing procedures, prorations, and settlement rules
• Advertising rules and misrepresentation prevention
• Property management and landlord-tenant basics
, Page 2 of 133
Q1
An Indiana broker advertises a listing on social media but does not include the brokerage name
anywhere in the advertisement. What is the most likely issue?
A. No issue if the property address is included
B. Advertising violation because brokerage identification is generally required
C. Allowed if the broker’s license number is included
D. Allowed if the seller approved the post
Answer: B
Rationale: Indiana advertising rules generally require disclosure of the brokerage name to prevent
consumer confusion and misrepresentation.
Q2
A buyer’s agent in Indiana learns the seller will accept a lower price but tells the buyer to offer full
asking price. What duty is violated?
A. Confidentiality
B. Loyalty and disclosure owed to the buyer client
, Page 3 of 133
C. Accounting
D. Obedience to the seller
Answer: B
Rationale: The buyer’s agent must act in the buyer’s best interest and disclose material information that
benefits the buyer.
Q3
An Indiana broker accepts an earnest money check and places it in a desk drawer for five days. What is
the likely violation?
A. No violation if the buyer has funds
B. Improper handling of escrow funds and failure to deposit timely
C. Violation only if the deal closes late
D. Allowed if the seller agreed
Answer: B
Rationale: Earnest money must be handled according to escrow rules and deposited promptly to avoid
commingling or conversion concerns.
, Page 4 of 133
Q4
A seller in Indiana tells their broker the basement floods every spring, but asks the broker not to disclose
it. What must the broker do?
A. Follow seller instructions due to loyalty duty
B. Disclose the material defect because concealment would be misrepresentation
C. Say nothing unless asked directly
D. Cancel the listing without explanation
Answer: B
Rationale: Flooding is a material defect. A broker cannot assist in fraud or concealment even if the seller
requests secrecy.
Q5
An Indiana buyer signs an offer, but the seller changes the closing date and signs without notifying the
buyer. What is the legal result?
A. Binding contract exists automatically
B. Seller created a counteroffer that requires buyer acceptance
Indiana Real Estate Law Exam ACTUAL EXAM COMPLETE
QUESTIONS AND DETAILED SOLUTIONS LATEST UPDATE THIS
YEAR-JUST RELEASED
SUMMARIZED EXAM COVERAGE (ALL CONTENTS COVERED)
Indiana real estate law exam focuses on:
• Licensing laws and IREC disciplinary authority
• Agency types, duties, and required disclosures
• Contract formation, contingencies, and breach remedies
• Deeds, ownership forms, liens, and recording laws
• Earnest money rules and escrow account compliance
• Seller disclosure obligations and material defect handling
• Fair housing laws and prohibited discriminatory practices
• Closing procedures, prorations, and settlement rules
• Advertising rules and misrepresentation prevention
• Property management and landlord-tenant basics
, Page 2 of 133
Q1
An Indiana broker advertises a listing on social media but does not include the brokerage name
anywhere in the advertisement. What is the most likely issue?
A. No issue if the property address is included
B. Advertising violation because brokerage identification is generally required
C. Allowed if the broker’s license number is included
D. Allowed if the seller approved the post
Answer: B
Rationale: Indiana advertising rules generally require disclosure of the brokerage name to prevent
consumer confusion and misrepresentation.
Q2
A buyer’s agent in Indiana learns the seller will accept a lower price but tells the buyer to offer full
asking price. What duty is violated?
A. Confidentiality
B. Loyalty and disclosure owed to the buyer client
, Page 3 of 133
C. Accounting
D. Obedience to the seller
Answer: B
Rationale: The buyer’s agent must act in the buyer’s best interest and disclose material information that
benefits the buyer.
Q3
An Indiana broker accepts an earnest money check and places it in a desk drawer for five days. What is
the likely violation?
A. No violation if the buyer has funds
B. Improper handling of escrow funds and failure to deposit timely
C. Violation only if the deal closes late
D. Allowed if the seller agreed
Answer: B
Rationale: Earnest money must be handled according to escrow rules and deposited promptly to avoid
commingling or conversion concerns.
, Page 4 of 133
Q4
A seller in Indiana tells their broker the basement floods every spring, but asks the broker not to disclose
it. What must the broker do?
A. Follow seller instructions due to loyalty duty
B. Disclose the material defect because concealment would be misrepresentation
C. Say nothing unless asked directly
D. Cancel the listing without explanation
Answer: B
Rationale: Flooding is a material defect. A broker cannot assist in fraud or concealment even if the seller
requests secrecy.
Q5
An Indiana buyer signs an offer, but the seller changes the closing date and signs without notifying the
buyer. What is the legal result?
A. Binding contract exists automatically
B. Seller created a counteroffer that requires buyer acceptance
