Indiana Real Estate Exam
practice Questions with
Accurate answers (frequently
tested questions)
The ____ is fully responsible for the actions preformed in
the course of real estate business by all persons licensed
under ______. - CORRECT ANSWERS ✔✔Broker, Broker
The _____ can carry out ONLY those responsbilties
assigned by employing ____. - CORRECT ANSWERS
✔✔Salesperson, broker
A salesperson can receive ______ ONLY from that broker. -
CORRECT ANSWERS ✔✔compensation
A salesperson has _______ to make contracts with or
______ from any other party. - CORRECT ANSWERS
✔✔no authority, receive compensation
A brokers commission is specified in the ______ with the
principal. - CORRECT ANSWERS ✔✔contract
,Independent contractors must have .... - CORRECT
ANSWERS ✔✔1. Current real estate licenses
2. Licensee must have a written contract w/ broker ( Tax
Reasons)
3. At least 90 % of the individuals income as a licensee
must be based on sales production and NOT on # of
hours worked.
Anti-trust violations - CORRECT ANSWERS ✔✔price-
fixing, group boycotting, allocation of customers and
markets, tie-in agreements
Exclusive right to sell listing - CORRECT ANSWERS ✔✔In
this agreement, the agent gets paid no matter who sells
the property, regardless of whether it's the agent or the
seller
Exclusive agency listing - CORRECT ANSWERS
✔✔Agents get paid in this type of agreement only if they
sell the property. No fee is earned if the owner sells the
property on his own
Open listing - CORRECT ANSWERS ✔✔In this type of
agreement, sellers have the right to use as many brokers
as they want. The seller is not, however, obligated to pay
any of them if he sells the property
,Net listing - CORRECT ANSWERS ✔✔This type of
agreement is illegal in some states. The agent gets to
keep everything he can get that's more than the sale
price the owner wants
Fiduciary - CORRECT ANSWERS ✔✔The relationship
between an agent and a client
What are the fiduciary duties of a real estate agent to
his/her client? - CORRECT ANSWERS ✔✔Accounting,
Care, Confidentiality, Disclosure, Loyalty, Obedience
Tenancy in severalty - CORRECT ANSWERS ✔✔type of
ownership is by a single person or a corporation, and not
being married doesn't have anything to do with it
Tenancy in common - CORRECT ANSWERS ✔✔Equal or
unequal undivided ownership between two or more
people is what characterizes this type of ownership. If an
owner dies, the deceased person's share is conveyed to
his or her heirs, not the other owners
(Joint tenancy)The four unities that must exist for this
type of ownership to exist are: - CORRECT ANSWERS
✔✔1.Interest: Each owner has the same interest.
, 2.Possession: All owners hold an undivided interest.
3.Time: All owners receive their interest at the same time.
4.Title: All owners acquire their interest with the same
deed.
If one owner of a joint tenancy dies - CORRECT
ANSWERS ✔✔That owner's interest reverts to the other
owners. This right of survivor-ship may vary by state.
Tenancy by the entirety - CORRECT ANSWERS
✔✔Available only to married couples, tenancy by the
entirety means that property may not be sold without the
agreement of both parties. The right of survivorship exists
to the extent that if one spouse dies, his/her interest
reverts to the other spouse
Adverse possession - CORRECT ANSWERS ✔✔When
someone uses your property, you may end up losing the
property or having your rights to the property restricted.
Avulsion - CORRECT ANSWERS ✔✔the sudden loss of
land by an act of nature like a landslide
practice Questions with
Accurate answers (frequently
tested questions)
The ____ is fully responsible for the actions preformed in
the course of real estate business by all persons licensed
under ______. - CORRECT ANSWERS ✔✔Broker, Broker
The _____ can carry out ONLY those responsbilties
assigned by employing ____. - CORRECT ANSWERS
✔✔Salesperson, broker
A salesperson can receive ______ ONLY from that broker. -
CORRECT ANSWERS ✔✔compensation
A salesperson has _______ to make contracts with or
______ from any other party. - CORRECT ANSWERS
✔✔no authority, receive compensation
A brokers commission is specified in the ______ with the
principal. - CORRECT ANSWERS ✔✔contract
,Independent contractors must have .... - CORRECT
ANSWERS ✔✔1. Current real estate licenses
2. Licensee must have a written contract w/ broker ( Tax
Reasons)
3. At least 90 % of the individuals income as a licensee
must be based on sales production and NOT on # of
hours worked.
Anti-trust violations - CORRECT ANSWERS ✔✔price-
fixing, group boycotting, allocation of customers and
markets, tie-in agreements
Exclusive right to sell listing - CORRECT ANSWERS ✔✔In
this agreement, the agent gets paid no matter who sells
the property, regardless of whether it's the agent or the
seller
Exclusive agency listing - CORRECT ANSWERS
✔✔Agents get paid in this type of agreement only if they
sell the property. No fee is earned if the owner sells the
property on his own
Open listing - CORRECT ANSWERS ✔✔In this type of
agreement, sellers have the right to use as many brokers
as they want. The seller is not, however, obligated to pay
any of them if he sells the property
,Net listing - CORRECT ANSWERS ✔✔This type of
agreement is illegal in some states. The agent gets to
keep everything he can get that's more than the sale
price the owner wants
Fiduciary - CORRECT ANSWERS ✔✔The relationship
between an agent and a client
What are the fiduciary duties of a real estate agent to
his/her client? - CORRECT ANSWERS ✔✔Accounting,
Care, Confidentiality, Disclosure, Loyalty, Obedience
Tenancy in severalty - CORRECT ANSWERS ✔✔type of
ownership is by a single person or a corporation, and not
being married doesn't have anything to do with it
Tenancy in common - CORRECT ANSWERS ✔✔Equal or
unequal undivided ownership between two or more
people is what characterizes this type of ownership. If an
owner dies, the deceased person's share is conveyed to
his or her heirs, not the other owners
(Joint tenancy)The four unities that must exist for this
type of ownership to exist are: - CORRECT ANSWERS
✔✔1.Interest: Each owner has the same interest.
, 2.Possession: All owners hold an undivided interest.
3.Time: All owners receive their interest at the same time.
4.Title: All owners acquire their interest with the same
deed.
If one owner of a joint tenancy dies - CORRECT
ANSWERS ✔✔That owner's interest reverts to the other
owners. This right of survivor-ship may vary by state.
Tenancy by the entirety - CORRECT ANSWERS
✔✔Available only to married couples, tenancy by the
entirety means that property may not be sold without the
agreement of both parties. The right of survivorship exists
to the extent that if one spouse dies, his/her interest
reverts to the other spouse
Adverse possession - CORRECT ANSWERS ✔✔When
someone uses your property, you may end up losing the
property or having your rights to the property restricted.
Avulsion - CORRECT ANSWERS ✔✔the sudden loss of
land by an act of nature like a landslide
