Indiana Real Estate
Managing Broker
Exam Questions And
Correct Answers
(Verified Answers)
Plus Rationales
1.
Which of the following is a primary duty of a managing
broker in Indiana?
A. Collecting rent personally
B. Maintaining escrow accounts
C. Selling only commercial property
D. Performing home inspections
Answer: B. Maintaining escrow accounts
Rationale: Managing brokers are responsible for
maintaining trust and escrow accounts in compliance with
Indiana law.
,2.
How long must Indiana managing brokers retain transaction
records?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Answer: C. 3 years
Rationale: Indiana law requires brokers to retain records for
at least three years.
3.
Which entity regulates real estate licenses in Indiana?
A. Indiana REALTORS® Association
B. Indiana Real Estate Commission
C. Department of Commerce
D. National Association of REALTORS®
Answer: B. Indiana Real Estate Commission
Rationale: The Indiana Real Estate Commission oversees
licensing and discipline.
4.
A managing broker must supervise:
,A. Only associate brokers
B. Only office managers
C. All licensees affiliated with the brokerage
D. Only new licensees
Answer: C. All licensees affiliated with the brokerage
Rationale: Managing brokers supervise all affiliated
licensees.
5.
Earnest money must be deposited into escrow:
A. Immediately
B. Within 24 hours
C. Within 2 business days
D. Within 10 days
Answer: C. Within 2 business days
Rationale: Indiana law requires deposit within two business
days.
6.
Which type of agency relationship represents only the seller?
A. Dual agency
B. Buyer agency
C. Designated agency
D. Seller agency
, Answer: D. Seller agency
Rationale: Seller agency means the brokerage represents
the seller exclusively.
7.
Trust funds belong to:
A. The managing broker
B. The brokerage
C. The client
D. The state
Answer: C. The client
Rationale: Trust funds belong to clients and must be
safeguarded.
8.
Which action is considered commingling?
A. Depositing earnest money into escrow
B. Mixing client funds with broker funds
C. Recording transactions
D. Paying commissions
Answer: B. Mixing client funds with broker funds
Rationale: Commingling is illegal and occurs when client
funds mix with broker funds.
9.
Managing Broker
Exam Questions And
Correct Answers
(Verified Answers)
Plus Rationales
1.
Which of the following is a primary duty of a managing
broker in Indiana?
A. Collecting rent personally
B. Maintaining escrow accounts
C. Selling only commercial property
D. Performing home inspections
Answer: B. Maintaining escrow accounts
Rationale: Managing brokers are responsible for
maintaining trust and escrow accounts in compliance with
Indiana law.
,2.
How long must Indiana managing brokers retain transaction
records?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Answer: C. 3 years
Rationale: Indiana law requires brokers to retain records for
at least three years.
3.
Which entity regulates real estate licenses in Indiana?
A. Indiana REALTORS® Association
B. Indiana Real Estate Commission
C. Department of Commerce
D. National Association of REALTORS®
Answer: B. Indiana Real Estate Commission
Rationale: The Indiana Real Estate Commission oversees
licensing and discipline.
4.
A managing broker must supervise:
,A. Only associate brokers
B. Only office managers
C. All licensees affiliated with the brokerage
D. Only new licensees
Answer: C. All licensees affiliated with the brokerage
Rationale: Managing brokers supervise all affiliated
licensees.
5.
Earnest money must be deposited into escrow:
A. Immediately
B. Within 24 hours
C. Within 2 business days
D. Within 10 days
Answer: C. Within 2 business days
Rationale: Indiana law requires deposit within two business
days.
6.
Which type of agency relationship represents only the seller?
A. Dual agency
B. Buyer agency
C. Designated agency
D. Seller agency
, Answer: D. Seller agency
Rationale: Seller agency means the brokerage represents
the seller exclusively.
7.
Trust funds belong to:
A. The managing broker
B. The brokerage
C. The client
D. The state
Answer: C. The client
Rationale: Trust funds belong to clients and must be
safeguarded.
8.
Which action is considered commingling?
A. Depositing earnest money into escrow
B. Mixing client funds with broker funds
C. Recording transactions
D. Paying commissions
Answer: B. Mixing client funds with broker funds
Rationale: Commingling is illegal and occurs when client
funds mix with broker funds.
9.
