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Indiana Real Estate Broker Licensing Practice Exam
Questions And Correct Answers (Verified Answers) Plus
Rationales 2025/2026 Q&A | Instant Download Pdf.
Which of these situations would the Indiana Real Estate Commission consider
sanctionable conduct in a licensee?
Brad fails to notify the commission that he's been convicted of a drunk driving
charge.
Diane discloses a material fact about her client's property against her client's
wishes.
Jessie refuses to act as an agent to seller Ned based on Ned's reputation as a
sexual predator.
Nick is facing foreclosure on his home. ......ANSWER......Brad fails to notify the
commission that he's been convicted of a drunk driving charge.
Which of these situations would the Indiana Real Estate Commission consider
sanctionable conduct in a licensee?
Brad fails to notify the commission that he's been convicted of a drunk driving
charge.
Diane discloses a material fact about her client's property against her client's
wishes.
Jessie refuses to act as an agent to seller Ned based on Ned's reputation as a
sexual predator.
Nick is facing foreclosure on his home. ......ANSWER......ABrad fails to notify the
commission that he's been convicted of a drunk driving charge.
pg. 1
,2|Page
Why would the Indiana Real Estate Commission impose an emergency
suspension on a broker?
A complainant requests the suspension.
A hearing officer hasn't yet been assigned.
The commission fears the licensee is a threat to the general public.
The commission isn't meeting for another few weeks. ......ANSWER......The
commission fears the licensee is a threat to the general public.
You have a lot of clients and would like your unlicensed assistant to help you.
Which of these activities would your assistant be allowed to perform?
Conduct a showing.
Fill out a purchase contract on behalf of a buyer.
Present a counter-offer.
Schedule or cancel showings. ......ANSWER......Schedule or cancel showings.
Maria, an Indiana broker, is conducting herself according to the Indiana
professional standards of practice in which of these scenarios?
After her seller accepts a buyer's offer, she decides not to inform the buyer of
the zoning changes she just learned about, even though they will affect the
allowed use of the property.
She advises one of her clients about a legal matter outside her area of expertise.
She pays her unlicensed assistant, Ted, a bonus when he takes charge of her
open houses, leaving her free to pursue other activities.
She refuses to restrict her advertisements for a listing to her seller's desired
target audience, people of Korean descent. ......ANSWER......She refuses to
restrict her advertisements for a listing to her seller's desired target audience,
people of Korean descent.
pg. 2
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Which of these scenarios would violate Indiana rules for real estate licensee
compensation?
A licensee who earns a referral fee directs the payment to be made to his
managing broker.
A managing broker pays an affiliated broker a percentage of the fee the affiliated
licensee earned from the transaction.
A managing broker splits the commission her affiliated licensee earned on a
transaction with the brokerage representing the buyer.
An affiliated licensee pays a split to her managing broker from the commission
she earned, according to their employment agreement. ......ANSWER......An
affiliated licensee pays a split to her managing broker from the commission she
earned, according to their employment agreement.
In Indiana, representing both parties in a transaction, with ______, is called
limited agency.
Agency eligibility
Disclosure of dual representation
Permission from the Indiana Real Estate Commission
Written informed consent ......ANSWER......Written informed consent
Indiana makes it unlawful, and against the professional standards of practice, for
a broker to do which of the following?
Accept escrow funds from a client without permission from a managing broker
Disburse escrow funds according to the terms of a purchase contract
Keep escrow funds undeposited, if agreed to in writing by all parties in a
transaction
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Neglect to remit or to account for escrow funds ......ANSWER......Neglect to
remit or to account for escrow funds
Andy has a managing broker-level license, but he's supervised by Charlene at Tip
Top Realty. What's true about Andy and Charlene?
Andy is an associate broker who works for Tip Top Realty, where Charlene is a
managing broker.
Both Andy and Charlotte must be partners or members of Tip Top Realty as well
as managing brokers.
Charlene is the business owner of Tip Top Realty, and Andy is the company's
managing broker.
Tip Top Realty is either a partnership or an LLC but can't be a corporation.
......ANSWER......Andy is an associate broker who works for Tip Top Realty,
where Charlene is a managing broker.
Rosie, an Indiana broker, tells her buyer client, "That property is a steal at that
price. I can guarantee you'll make a profit when you resell." Has Rosie violated
Indiana's professional standards of practice?
No, Rosie has a duty to her client to provide honest advice based on her
expertise and knowledge of the real estate market.
No, Rosie's remark would not be considered reasonable by the average buyer
client, so it doesn't qualify as misrepresentation.
Yes, it's unlawful for a licensee to guarantee future profits buyers may realize
when they re-sell a property they're considering purchasing.
Yes, the professional standards of practice make it unlawful for a licensee to
advise a client about any potential for profit or loss in a real estate sale.
......ANSWER......Yes, it's unlawful for a licensee to guarantee future profits
buyers may realize when they re-sell a property they're considering purchasing.
pg. 4
Indiana Real Estate Broker Licensing Practice Exam
Questions And Correct Answers (Verified Answers) Plus
Rationales 2025/2026 Q&A | Instant Download Pdf.
Which of these situations would the Indiana Real Estate Commission consider
sanctionable conduct in a licensee?
Brad fails to notify the commission that he's been convicted of a drunk driving
charge.
Diane discloses a material fact about her client's property against her client's
wishes.
Jessie refuses to act as an agent to seller Ned based on Ned's reputation as a
sexual predator.
Nick is facing foreclosure on his home. ......ANSWER......Brad fails to notify the
commission that he's been convicted of a drunk driving charge.
Which of these situations would the Indiana Real Estate Commission consider
sanctionable conduct in a licensee?
Brad fails to notify the commission that he's been convicted of a drunk driving
charge.
Diane discloses a material fact about her client's property against her client's
wishes.
Jessie refuses to act as an agent to seller Ned based on Ned's reputation as a
sexual predator.
Nick is facing foreclosure on his home. ......ANSWER......ABrad fails to notify the
commission that he's been convicted of a drunk driving charge.
pg. 1
,2|Page
Why would the Indiana Real Estate Commission impose an emergency
suspension on a broker?
A complainant requests the suspension.
A hearing officer hasn't yet been assigned.
The commission fears the licensee is a threat to the general public.
The commission isn't meeting for another few weeks. ......ANSWER......The
commission fears the licensee is a threat to the general public.
You have a lot of clients and would like your unlicensed assistant to help you.
Which of these activities would your assistant be allowed to perform?
Conduct a showing.
Fill out a purchase contract on behalf of a buyer.
Present a counter-offer.
Schedule or cancel showings. ......ANSWER......Schedule or cancel showings.
Maria, an Indiana broker, is conducting herself according to the Indiana
professional standards of practice in which of these scenarios?
After her seller accepts a buyer's offer, she decides not to inform the buyer of
the zoning changes she just learned about, even though they will affect the
allowed use of the property.
She advises one of her clients about a legal matter outside her area of expertise.
She pays her unlicensed assistant, Ted, a bonus when he takes charge of her
open houses, leaving her free to pursue other activities.
She refuses to restrict her advertisements for a listing to her seller's desired
target audience, people of Korean descent. ......ANSWER......She refuses to
restrict her advertisements for a listing to her seller's desired target audience,
people of Korean descent.
pg. 2
,3|Page
Which of these scenarios would violate Indiana rules for real estate licensee
compensation?
A licensee who earns a referral fee directs the payment to be made to his
managing broker.
A managing broker pays an affiliated broker a percentage of the fee the affiliated
licensee earned from the transaction.
A managing broker splits the commission her affiliated licensee earned on a
transaction with the brokerage representing the buyer.
An affiliated licensee pays a split to her managing broker from the commission
she earned, according to their employment agreement. ......ANSWER......An
affiliated licensee pays a split to her managing broker from the commission she
earned, according to their employment agreement.
In Indiana, representing both parties in a transaction, with ______, is called
limited agency.
Agency eligibility
Disclosure of dual representation
Permission from the Indiana Real Estate Commission
Written informed consent ......ANSWER......Written informed consent
Indiana makes it unlawful, and against the professional standards of practice, for
a broker to do which of the following?
Accept escrow funds from a client without permission from a managing broker
Disburse escrow funds according to the terms of a purchase contract
Keep escrow funds undeposited, if agreed to in writing by all parties in a
transaction
pg. 3
, 4|Page
Neglect to remit or to account for escrow funds ......ANSWER......Neglect to
remit or to account for escrow funds
Andy has a managing broker-level license, but he's supervised by Charlene at Tip
Top Realty. What's true about Andy and Charlene?
Andy is an associate broker who works for Tip Top Realty, where Charlene is a
managing broker.
Both Andy and Charlotte must be partners or members of Tip Top Realty as well
as managing brokers.
Charlene is the business owner of Tip Top Realty, and Andy is the company's
managing broker.
Tip Top Realty is either a partnership or an LLC but can't be a corporation.
......ANSWER......Andy is an associate broker who works for Tip Top Realty,
where Charlene is a managing broker.
Rosie, an Indiana broker, tells her buyer client, "That property is a steal at that
price. I can guarantee you'll make a profit when you resell." Has Rosie violated
Indiana's professional standards of practice?
No, Rosie has a duty to her client to provide honest advice based on her
expertise and knowledge of the real estate market.
No, Rosie's remark would not be considered reasonable by the average buyer
client, so it doesn't qualify as misrepresentation.
Yes, it's unlawful for a licensee to guarantee future profits buyers may realize
when they re-sell a property they're considering purchasing.
Yes, the professional standards of practice make it unlawful for a licensee to
advise a client about any potential for profit or loss in a real estate sale.
......ANSWER......Yes, it's unlawful for a licensee to guarantee future profits
buyers may realize when they re-sell a property they're considering purchasing.
pg. 4
