Indiana Real Estate Managing Broker Exam
Practice Questions & Answers (2026
Updated) | Verified Q&A with Detailed
Rationales PDF Study Guide
• This study guide contains 200 verified practice questions with detailed EXPERT
RATIONALE, designed to mirror the format and difficulty of the Indiana Real Estate
Managing Broker Exam (2026).
• Use this material by reading each question carefully, selecting your answer before
checking the correct option, then studying the EXPERT RATIONALE to reinforce
understanding of the underlying concept.
1. Under Indiana law, which entity is responsible for licensing and regulating
real estate brokers and managing brokers?
A) The Indiana Department of Commerce
B) The Indiana Real Estate Association
C) The Indiana Professional Licensing Agency
D) The Indiana Real Estate Commission (IREC)
E) The Indiana Secretary of State's Office
Correct Answer: D) The Indiana Real Estate Commission (IREC)
EXPERT RATIONALE: The Indiana Real Estate Commission (IREC) is the state
agency responsible for issuing licenses, enforcing standards, and regulating all real
estate licensees in Indiana, including managing brokers.
2. A managing broker in Indiana is primarily responsible for which of the
following?
A) Negotiating all contracts personally on behalf of clients
B) Setting commission rates for the local MLS
C) Supervising the activities of broker associates affiliated with the company
,D) Paying all licensee income taxes directly
E) Maintaining a personal sales quota each quarter
Correct Answer: C) Supervising the activities of broker associates affiliated
with the company
EXPERT RATIONALE: A managing broker's core legal responsibility is to
supervise the licensed activities of all broker associates working under their license,
ensuring compliance with Indiana law and IREC rules.
3. How many hours of pre-licensing education are required for an Indiana
managing broker license applicant?
A) 40 hours
B) 60 hours
C) 24 hours
D) 90 hours
E) 24 hours of broker-specific coursework plus prior broker education
Correct Answer: E) 24 hours of broker-specific coursework plus prior
broker education
EXPERT RATIONALE: Indiana requires applicants for a managing broker license
to have already completed broker education and additionally complete a 24-hour
managing broker course before sitting for the managing broker examination.
4. Under Indiana license law, a broker associate who wishes to change their
affiliated managing broker must:
A) Simply begin working at the new company immediately
B) Notify IREC within 10 days
C) File a transfer form with the IREC and obtain the new managing broker's
signature
,D) Retake their licensing examination
E) Pay a reinstatement fee to the previous managing broker
Correct Answer: C) File a transfer form with the IREC and obtain the new
managing broker's signature
EXPERT RATIONALE: Indiana law requires a formal transfer process through
IREC. The new managing broker must accept and sign the transfer, ensuring proper
supervision is documented and maintained at all times.
5. Which of the following best describes a dual agency relationship in Indiana?
A) When two brokers from different firms represent the same buyer
B) When a single agent represents both the buyer and the seller in the same
transaction
C) When a managing broker supervises two competing agents
D) When a licensee holds both a salesperson and broker license simultaneously
E) When a property is listed with two different brokerages at the same time
Correct Answer: B) When a single agent represents both the buyer and the
seller in the same transaction
EXPERT RATIONALE: Dual agency occurs when one agent or brokerage
represents both parties in a transaction. In Indiana, this is permitted only with
informed written consent from both the buyer and seller, as it creates a potential
conflict of interest.
6. What is the minimum number of years of active broker experience required
before applying for a managing broker license in Indiana?
A) 6 months
B) 1 year
C) 2 years
, D) 3 years
E) 5 years
Correct Answer: C) 2 years
EXPERT RATIONALE: Indiana law requires that an applicant for a managing
broker license must have been actively licensed as a broker for at least 2 years prior
to applying, demonstrating sufficient practical experience in the field.
7. Under the Indiana agency disclosure requirements, a licensee must provide
an agency disclosure form to a consumer:
A) Only at closing
B) Only when the consumer signs a listing agreement
C) At the first substantive contact with the consumer
D) After showing a property for the first time
E) Only if the consumer specifically requests it
Correct Answer: C) At the first substantive contact with the consumer
EXPERT RATIONALE: Indiana law mandates that licensees provide the
Consumer Guide to Agency Relationships at the first substantive contact, ensuring
consumers understand whom the agent legally represents before any meaningful
discussion occurs.
8. A managing broker's trust account in Indiana must be maintained in:
A) An interest-bearing account at a federally insured institution, with interest
payable to the broker
B) A non-interest-bearing or interest-bearing federally insured bank account in
Indiana
C) A personal savings account
Practice Questions & Answers (2026
Updated) | Verified Q&A with Detailed
Rationales PDF Study Guide
• This study guide contains 200 verified practice questions with detailed EXPERT
RATIONALE, designed to mirror the format and difficulty of the Indiana Real Estate
Managing Broker Exam (2026).
• Use this material by reading each question carefully, selecting your answer before
checking the correct option, then studying the EXPERT RATIONALE to reinforce
understanding of the underlying concept.
1. Under Indiana law, which entity is responsible for licensing and regulating
real estate brokers and managing brokers?
A) The Indiana Department of Commerce
B) The Indiana Real Estate Association
C) The Indiana Professional Licensing Agency
D) The Indiana Real Estate Commission (IREC)
E) The Indiana Secretary of State's Office
Correct Answer: D) The Indiana Real Estate Commission (IREC)
EXPERT RATIONALE: The Indiana Real Estate Commission (IREC) is the state
agency responsible for issuing licenses, enforcing standards, and regulating all real
estate licensees in Indiana, including managing brokers.
2. A managing broker in Indiana is primarily responsible for which of the
following?
A) Negotiating all contracts personally on behalf of clients
B) Setting commission rates for the local MLS
C) Supervising the activities of broker associates affiliated with the company
,D) Paying all licensee income taxes directly
E) Maintaining a personal sales quota each quarter
Correct Answer: C) Supervising the activities of broker associates affiliated
with the company
EXPERT RATIONALE: A managing broker's core legal responsibility is to
supervise the licensed activities of all broker associates working under their license,
ensuring compliance with Indiana law and IREC rules.
3. How many hours of pre-licensing education are required for an Indiana
managing broker license applicant?
A) 40 hours
B) 60 hours
C) 24 hours
D) 90 hours
E) 24 hours of broker-specific coursework plus prior broker education
Correct Answer: E) 24 hours of broker-specific coursework plus prior
broker education
EXPERT RATIONALE: Indiana requires applicants for a managing broker license
to have already completed broker education and additionally complete a 24-hour
managing broker course before sitting for the managing broker examination.
4. Under Indiana license law, a broker associate who wishes to change their
affiliated managing broker must:
A) Simply begin working at the new company immediately
B) Notify IREC within 10 days
C) File a transfer form with the IREC and obtain the new managing broker's
signature
,D) Retake their licensing examination
E) Pay a reinstatement fee to the previous managing broker
Correct Answer: C) File a transfer form with the IREC and obtain the new
managing broker's signature
EXPERT RATIONALE: Indiana law requires a formal transfer process through
IREC. The new managing broker must accept and sign the transfer, ensuring proper
supervision is documented and maintained at all times.
5. Which of the following best describes a dual agency relationship in Indiana?
A) When two brokers from different firms represent the same buyer
B) When a single agent represents both the buyer and the seller in the same
transaction
C) When a managing broker supervises two competing agents
D) When a licensee holds both a salesperson and broker license simultaneously
E) When a property is listed with two different brokerages at the same time
Correct Answer: B) When a single agent represents both the buyer and the
seller in the same transaction
EXPERT RATIONALE: Dual agency occurs when one agent or brokerage
represents both parties in a transaction. In Indiana, this is permitted only with
informed written consent from both the buyer and seller, as it creates a potential
conflict of interest.
6. What is the minimum number of years of active broker experience required
before applying for a managing broker license in Indiana?
A) 6 months
B) 1 year
C) 2 years
, D) 3 years
E) 5 years
Correct Answer: C) 2 years
EXPERT RATIONALE: Indiana law requires that an applicant for a managing
broker license must have been actively licensed as a broker for at least 2 years prior
to applying, demonstrating sufficient practical experience in the field.
7. Under the Indiana agency disclosure requirements, a licensee must provide
an agency disclosure form to a consumer:
A) Only at closing
B) Only when the consumer signs a listing agreement
C) At the first substantive contact with the consumer
D) After showing a property for the first time
E) Only if the consumer specifically requests it
Correct Answer: C) At the first substantive contact with the consumer
EXPERT RATIONALE: Indiana law mandates that licensees provide the
Consumer Guide to Agency Relationships at the first substantive contact, ensuring
consumers understand whom the agent legally represents before any meaningful
discussion occurs.
8. A managing broker's trust account in Indiana must be maintained in:
A) An interest-bearing account at a federally insured institution, with interest
payable to the broker
B) A non-interest-bearing or interest-bearing federally insured bank account in
Indiana
C) A personal savings account
