Indiana State Real Estate Exam Practice Test 1 questions and
answers 2026\2027 A+ Grade
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.
- correct 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.
- correct answer ABrad fails to notify the commission that he's been convicted of a drunk driving charge.
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.
- correct 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.
- correct 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.
- correct answer She refuses to restrict her advertisements for a listing to her seller's desired target
audience, people of Korean descent.
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.
- correct 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
- correct 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
Neglect to remit or to account for escrow funds
- correct 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.
- correct 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.
- correct 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.
answers 2026\2027 A+ Grade
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.
- correct 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.
- correct answer ABrad fails to notify the commission that he's been convicted of a drunk driving charge.
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.
- correct 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.
- correct 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.
- correct answer She refuses to restrict her advertisements for a listing to her seller's desired target
audience, people of Korean descent.
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.
- correct 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
- correct 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
Neglect to remit or to account for escrow funds
- correct 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.
- correct 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.
- correct 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.
