7A - Indiana Real Estate License Law and
Agency Law questions and answers 100%
guaranteed success.
Affiliated Licensee - correct answer. Individual licensee affiliated with a managing broker
Agent - correct answer. Any licensee who has an agency relationship with a principal
Broker - correct answer. One who has a broker's license
Broker Company - correct answer. A business licensed as a broker to practice real estate
and hold the licenses of affiliated licensees.
Broker Price Opinion (BPO) - correct answer. The estimated value of a property as
determined by a real estate broker or other qualified individual or firm.
Consideration - correct answer. Something of value given to another as compensation for
entering into a contract.
Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) - correct answer.
A congressional Act passed in 1989 as a comprehensive savings and loan bailout and
preventive measure against future S&L insolvency.
Licensee - correct answer. Anyone who has a real estate license, regardless of type or
status.
, Limited Agent - correct answer. A licensee who works with both parties to a transaction
(i.e., buyer and seller) and legally can do this only with written "informed consent" of all
parties.
Listing Broker - correct answer. A broker who specifically represents the seller or
landlord.
Managing Broker - correct answer. One who practices individually and/or holds another's
license and becomes responsible for all acts performed under their license. A managing
broker is the only party who can be paid directly by the public or other cooperating
brokers
Principal - correct answer. 1) A person who grants another person (an agent) authority to
represent him or her in dealings with third parties. 2) one of the parties to a transaction
(such as a broker). Also called a Client. 3) With regarding to a loan, the amount
originally borrowed, as opposed to the interest.
Responsible Party - correct answer. The managing broker who is primarily responsible to
the Commission in a brokerage that operates under a corporate partnership or LLC
license.
Seller's Agent - correct answer. An agent who represents the seller of real property.
Selling Broker - correct answer. An agent who represents the buyer or tenant, often as a
cooperating agent through the MLS/BLC. Also called a Selling Agent.
USPAP (Uniform Standards of Professional Appraisal Practice) - correct answer.
Professional appraisal standards developed by the Appraisal Foundation and
recognized throughout the United States as accepted standards of appraisal practice.
Which individual does NOT require licensure? Select all correct responses.
A. agent selling a commercial property
B. executor of an estate
C. owner/manager renting apartments on a property with 12 units or less
D. Tax official conducting a tax sale - correct answer. B, C and D
Any entity that is paid to provide services in the buying or selling of real estate in
Indiana must be licensed to do so.
True or False - correct answer. True
Which statement about the Indiana Real Estate Commission is FALSE? Select all
correct responses.
A. The IREC maintains official records and files on all licenses and licensees.
B. The IREC processes license application/renewals and collects all fees
C. The IREC safeguards the public interest
Agency Law questions and answers 100%
guaranteed success.
Affiliated Licensee - correct answer. Individual licensee affiliated with a managing broker
Agent - correct answer. Any licensee who has an agency relationship with a principal
Broker - correct answer. One who has a broker's license
Broker Company - correct answer. A business licensed as a broker to practice real estate
and hold the licenses of affiliated licensees.
Broker Price Opinion (BPO) - correct answer. The estimated value of a property as
determined by a real estate broker or other qualified individual or firm.
Consideration - correct answer. Something of value given to another as compensation for
entering into a contract.
Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) - correct answer.
A congressional Act passed in 1989 as a comprehensive savings and loan bailout and
preventive measure against future S&L insolvency.
Licensee - correct answer. Anyone who has a real estate license, regardless of type or
status.
, Limited Agent - correct answer. A licensee who works with both parties to a transaction
(i.e., buyer and seller) and legally can do this only with written "informed consent" of all
parties.
Listing Broker - correct answer. A broker who specifically represents the seller or
landlord.
Managing Broker - correct answer. One who practices individually and/or holds another's
license and becomes responsible for all acts performed under their license. A managing
broker is the only party who can be paid directly by the public or other cooperating
brokers
Principal - correct answer. 1) A person who grants another person (an agent) authority to
represent him or her in dealings with third parties. 2) one of the parties to a transaction
(such as a broker). Also called a Client. 3) With regarding to a loan, the amount
originally borrowed, as opposed to the interest.
Responsible Party - correct answer. The managing broker who is primarily responsible to
the Commission in a brokerage that operates under a corporate partnership or LLC
license.
Seller's Agent - correct answer. An agent who represents the seller of real property.
Selling Broker - correct answer. An agent who represents the buyer or tenant, often as a
cooperating agent through the MLS/BLC. Also called a Selling Agent.
USPAP (Uniform Standards of Professional Appraisal Practice) - correct answer.
Professional appraisal standards developed by the Appraisal Foundation and
recognized throughout the United States as accepted standards of appraisal practice.
Which individual does NOT require licensure? Select all correct responses.
A. agent selling a commercial property
B. executor of an estate
C. owner/manager renting apartments on a property with 12 units or less
D. Tax official conducting a tax sale - correct answer. B, C and D
Any entity that is paid to provide services in the buying or selling of real estate in
Indiana must be licensed to do so.
True or False - correct answer. True
Which statement about the Indiana Real Estate Commission is FALSE? Select all
correct responses.
A. The IREC maintains official records and files on all licenses and licensees.
B. The IREC processes license application/renewals and collects all fees
C. The IREC safeguards the public interest
