INDIANA REAL ESTATE MANAGING BROKER EXAM
QUESTIONS AND CORRECT ANSWERS ( 1000%
VERIFIED ANSWERS) Q&A 2026 |INSTANT
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1. Which entity issues real estate licenses in Indiana?
A. Indiana Department of Commerce
B. Indiana Real Estate Commission
C. Indiana Secretary of State
D. Indiana Housing Authority
Correct Answer: B
Rationale: The Indiana Real Estate Commission (IREC) regulates and issues real estate licenses in
the state.
2. A managing broker in Indiana must supervise:
A. Only associate brokers
B. Only salespersons
C. All licensees affiliated with their brokerage
D. Only unlicensed assistants
Correct Answer: C
Rationale: Managing brokers are responsible for supervising all affiliated licensees, including
brokers and salespersons.
3. How long must Indiana brokers retain transaction records?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
,Correct Answer: C
Rationale: Indiana requires brokers to retain records for at least 3 years.
4. Which contract is required for all Indiana real estate listings?
A. Oral agreement
B. Written listing agreement
C. Email confirmation
D. Verbal handshake agreement
Correct Answer: B
Rationale: Indiana law requires listing agreements to be in writing to be enforceable.
5. The primary purpose of the Indiana Real Estate Commission is to:
A. Set property taxes
B. Enforce real estate licensing laws
C. Manage housing development
D. Approve mortgages
Correct Answer: B
Rationale: The Commission enforces licensing laws and regulates real estate professionals.
6. Which of the following is NOT a fiduciary duty?
A. Loyalty
B. Obedience
C. Disclosure
D. Profit maximization
Correct Answer: D
Rationale: Profit maximization is not a fiduciary duty; duties include loyalty, obedience,
disclosure, confidentiality, accounting, and reasonable care.
7. A broker acting as a dual agent must:
A. Represent only the seller
B. Represent only the buyer
, C. Disclose and obtain consent from both parties
D. Avoid written agreements
Correct Answer: C
Rationale: Dual agency requires full disclosure and informed written consent from both parties.
8. Which law protects consumers from deceptive real estate practices?
A. Sherman Act
B. Indiana Consumer Protection Act
C. Fair Credit Reporting Act
D. Truth in Lending Act
Correct Answer: B
Rationale: Indiana Consumer Protection laws prohibit deceptive trade practices in real estate.
9. An escrow account is used to hold:
A. Broker commissions
B. Client funds such as deposits
C. License fees
D. Advertising funds
Correct Answer: B
Rationale: Escrow accounts hold client funds like earnest money deposits.
10. Which of the following is considered commingling?
A. Separating client funds properly
B. Mixing personal and client funds
C. Paying taxes on commissions
D. Recording transactions
Correct Answer: B
Rationale: Commingling occurs when personal and client funds are mixed, which is illegal.
11. A listing agreement is primarily between:
QUESTIONS AND CORRECT ANSWERS ( 1000%
VERIFIED ANSWERS) Q&A 2026 |INSTANT
DOWNLOAD PDF
1. Which entity issues real estate licenses in Indiana?
A. Indiana Department of Commerce
B. Indiana Real Estate Commission
C. Indiana Secretary of State
D. Indiana Housing Authority
Correct Answer: B
Rationale: The Indiana Real Estate Commission (IREC) regulates and issues real estate licenses in
the state.
2. A managing broker in Indiana must supervise:
A. Only associate brokers
B. Only salespersons
C. All licensees affiliated with their brokerage
D. Only unlicensed assistants
Correct Answer: C
Rationale: Managing brokers are responsible for supervising all affiliated licensees, including
brokers and salespersons.
3. How long must Indiana brokers retain transaction records?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
,Correct Answer: C
Rationale: Indiana requires brokers to retain records for at least 3 years.
4. Which contract is required for all Indiana real estate listings?
A. Oral agreement
B. Written listing agreement
C. Email confirmation
D. Verbal handshake agreement
Correct Answer: B
Rationale: Indiana law requires listing agreements to be in writing to be enforceable.
5. The primary purpose of the Indiana Real Estate Commission is to:
A. Set property taxes
B. Enforce real estate licensing laws
C. Manage housing development
D. Approve mortgages
Correct Answer: B
Rationale: The Commission enforces licensing laws and regulates real estate professionals.
6. Which of the following is NOT a fiduciary duty?
A. Loyalty
B. Obedience
C. Disclosure
D. Profit maximization
Correct Answer: D
Rationale: Profit maximization is not a fiduciary duty; duties include loyalty, obedience,
disclosure, confidentiality, accounting, and reasonable care.
7. A broker acting as a dual agent must:
A. Represent only the seller
B. Represent only the buyer
, C. Disclose and obtain consent from both parties
D. Avoid written agreements
Correct Answer: C
Rationale: Dual agency requires full disclosure and informed written consent from both parties.
8. Which law protects consumers from deceptive real estate practices?
A. Sherman Act
B. Indiana Consumer Protection Act
C. Fair Credit Reporting Act
D. Truth in Lending Act
Correct Answer: B
Rationale: Indiana Consumer Protection laws prohibit deceptive trade practices in real estate.
9. An escrow account is used to hold:
A. Broker commissions
B. Client funds such as deposits
C. License fees
D. Advertising funds
Correct Answer: B
Rationale: Escrow accounts hold client funds like earnest money deposits.
10. Which of the following is considered commingling?
A. Separating client funds properly
B. Mixing personal and client funds
C. Paying taxes on commissions
D. Recording transactions
Correct Answer: B
Rationale: Commingling occurs when personal and client funds are mixed, which is illegal.
11. A listing agreement is primarily between:
