INDIANA REAL ESTATE MANAGING BROKER EXAM
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) Q&A 2026|INSTANT DOWNLOAD PDF
1. What is the primary responsibility of a managing broker in
Indiana?
A. Selling only residential properties
B. Supervising licensees and ensuring compliance with real
estate laws
C. Appraising property values for tax purposes
D. Acting as a mortgage lender
Rationale: A managing broker is responsible for overseeing
brokerage operations and ensuring all affiliated licensees
comply with Indiana real estate law and ethical standards.
Correct Answer: B
2. Which entity regulates real estate licensing in Indiana?
A. Indiana Department of Transportation
B. Indiana Real Estate Commission
C. Indiana Department of Revenue
D. Federal Housing Administration
Rationale: The Indiana Real Estate Commission (IREC) oversees
licensing, rules, and discipline of real estate professionals.
Correct Answer: B
,3. A managing broker must maintain client trust funds in
which type of account?
A. Personal checking account
B. Escrow or trust account
C. Investment account
D. Cash deposit box
Rationale: Client funds must be kept separate from
personal/business funds in a designated escrow or trust
account.
Correct Answer: B
4. Which law primarily governs fair housing in Indiana?
A. Sherman Antitrust Act
B. Civil Rights Act of 1968 (Fair Housing Act)
C. Indiana Zoning Act
D. Dodd-Frank Act
Rationale: The Fair Housing Act prohibits discrimination in
housing based on protected classes.
Correct Answer: B
5. Which of the following is NOT a protected class under
federal fair housing law?
A. Race
B. Religion
,C. Marital status
D. National origin
Rationale: Marital status is not federally protected (though
some states may add protections).
Correct Answer: C
6. What is required for an Indiana broker’s license renewal?
A. Passing the national exam again
B. Completing continuing education requirements
C. Submitting a new application every month
D. Only paying a renewal fee
Rationale: Indiana requires continuing education to maintain
licensure.
Correct Answer: B
7. Which contract element ensures enforceability in real
estate transactions?
A. Color of ink used
B. Legal purpose
C. Number of pages
D. Witness signature only
Rationale: A valid contract must have a legal purpose to be
enforceable.
Correct Answer: B
, 8. An agency relationship in real estate is created by:
A. Implied agreement only
B. Oral agreement only
C. Express or implied agreement
D. Court order only
Rationale: Agency can be created either expressly
(written/oral) or implied through conduct.
Correct Answer: C
9. What is a fiduciary duty in real estate?
A. Duty to increase property taxes
B. Duty to act in the best interest of the client
C. Duty to represent both parties equally
D. Duty to disclose personal opinions
Rationale: Fiduciary duty requires loyalty, care, and acting in
the client’s best interest.
Correct Answer: B
10. Which of the following is NOT a fiduciary duty?
A. Obedience
B. Disclosure
C. Profit sharing
D. Loyalty
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) Q&A 2026|INSTANT DOWNLOAD PDF
1. What is the primary responsibility of a managing broker in
Indiana?
A. Selling only residential properties
B. Supervising licensees and ensuring compliance with real
estate laws
C. Appraising property values for tax purposes
D. Acting as a mortgage lender
Rationale: A managing broker is responsible for overseeing
brokerage operations and ensuring all affiliated licensees
comply with Indiana real estate law and ethical standards.
Correct Answer: B
2. Which entity regulates real estate licensing in Indiana?
A. Indiana Department of Transportation
B. Indiana Real Estate Commission
C. Indiana Department of Revenue
D. Federal Housing Administration
Rationale: The Indiana Real Estate Commission (IREC) oversees
licensing, rules, and discipline of real estate professionals.
Correct Answer: B
,3. A managing broker must maintain client trust funds in
which type of account?
A. Personal checking account
B. Escrow or trust account
C. Investment account
D. Cash deposit box
Rationale: Client funds must be kept separate from
personal/business funds in a designated escrow or trust
account.
Correct Answer: B
4. Which law primarily governs fair housing in Indiana?
A. Sherman Antitrust Act
B. Civil Rights Act of 1968 (Fair Housing Act)
C. Indiana Zoning Act
D. Dodd-Frank Act
Rationale: The Fair Housing Act prohibits discrimination in
housing based on protected classes.
Correct Answer: B
5. Which of the following is NOT a protected class under
federal fair housing law?
A. Race
B. Religion
,C. Marital status
D. National origin
Rationale: Marital status is not federally protected (though
some states may add protections).
Correct Answer: C
6. What is required for an Indiana broker’s license renewal?
A. Passing the national exam again
B. Completing continuing education requirements
C. Submitting a new application every month
D. Only paying a renewal fee
Rationale: Indiana requires continuing education to maintain
licensure.
Correct Answer: B
7. Which contract element ensures enforceability in real
estate transactions?
A. Color of ink used
B. Legal purpose
C. Number of pages
D. Witness signature only
Rationale: A valid contract must have a legal purpose to be
enforceable.
Correct Answer: B
, 8. An agency relationship in real estate is created by:
A. Implied agreement only
B. Oral agreement only
C. Express or implied agreement
D. Court order only
Rationale: Agency can be created either expressly
(written/oral) or implied through conduct.
Correct Answer: C
9. What is a fiduciary duty in real estate?
A. Duty to increase property taxes
B. Duty to act in the best interest of the client
C. Duty to represent both parties equally
D. Duty to disclose personal opinions
Rationale: Fiduciary duty requires loyalty, care, and acting in
the client’s best interest.
Correct Answer: B
10. Which of the following is NOT a fiduciary duty?
A. Obedience
B. Disclosure
C. Profit sharing
D. Loyalty
