Indiana real estate exam practice questions and answers
2026\2027 A+ Grade
A broker's protection clause, when inserted into a listing agreement, serves this function:
- correct answer To entitle the broker a commission if the property is sold to parties with whom he/she
has negotiated during the term of the listing for a stated number of days after the listing expires
A legal document pledging a property to the lender as security for payment of a debt is called:
- correct answer A mortgage
What does a desist and refrain order do if issued by the real estate commissioner?
- correct answer Places a halt to sales and marketing of properties in a subdivision
Federal income tax liens, state income tax liens, and judgement liens are all examples of:
- correct answer General liens
Under which law is it not permissible for a broker to only sell a property under the condition that the
broker obtains the listing for future sales?
- correct answer Sherman Act
A deed is a legal document that:
- correct answer Conveys title to property
If either a negative covenant or an affirmative covenant is breached, the remedies are either:
- correct answer Monetary or injunctive relief
If a lender is issuing an FHA or VA loan, where does the funding originate?
- correct answer From the lender
,The nominal interest rate is:
- correct answer The rate of interest specified in the note
Government surveys use sections, townships, and ranges to describe what about land?
- correct answer Location
A CMA typically will include data on:
- correct answer All of these
The duration is the primary characteristic that distinguishes a ____________ from a _____________.
- correct answer Freehold estate, Non-Freehold estate
When a real estate developer obtains a loan for building a new housing tract and the lender gives part of
the funds to the developer and agrees to release the rest of the funds as each home is built, this is called
which type of financing:
- correct answer Obligatory
Demand for property requires what two factors of the populace to be effective?
- correct answer Desire and means
If Walter, a real estate agent, fails to perform the due diligence to verify a seller's information, Walter
can be held responsible for:
- correct answer Misrepresentation
Scarcity, Demand, Utility, and Transferability are also known as:
- correct answer The four elements of value
In appraising unique properties, which approach is best for determining value:
Incorrect
- correct answer Cost
In Indiana, if an agent wishes to purchase a listing that is procured by his or her supervising broker, the
agent must
- correct answer Notify the owner in writing that he or she is a licensee
,If a person owes money to another person, the person who is owed the money is referred to as the:
- correct answer Creditor
The party that accepts the endorsed note from the original payee without knowledge of any defects is
known as:
- correct answer Holder in due course
Airways above a property are:
- correct answer Public domain
If a broker shows a home to a potential buyer and they wish to make an offer on it, what legal
responsibility does the broker owe the customer?
- correct answer Honest and fair treatment
The height of most ceilings in a single family home is:
- correct answer 8 feet
When determining the "loan-to-value" of a property, it is:
- correct answer The percentage relationship between the amount of the loan and the appraised value
or sales price
Even if a person has a low credit worthiness, the Fair Housing Law requires:
- correct answer That the lender reconfigure the loan requirements to fit the individual
None of these
That the lender make the loan anyway at a higher interest rate
That the lender make a good faith attempt to obtain a loan
: none of these
In regards to the borrower in a mortgage agreement, they would NOT be called the:
- correct answer Mortgagee
Usurer
Lessor
, Any of these
: any of these
One of the main differences between a mortgage broker and a mortgage banker is:
- correct answer The source of the funds used for loans
How does the FHA insure loans?
- correct answer Mutual mortgage insurance
What is sufficient disclosure in an ad for a home?
- correct answer Annual percentage rate
If there is an easement appurtenant, there must also be:
- correct answer A dominant tenement
If a person who works for a non-profit organization wants to participate in an employer-sponsored
investment plan that allows them to set aside tax-deferred income for retirement or emergency
purposes, they would enroll in a:
- correct answer A 403(b) plan is provided by a non-profit organization to allow individuals to set aside
tax-deferred income for retirement or emergency purposes. A 401(k) is provided by private for-profit
corporations.
If an "as-is" clause is inserted into the sales contract for a property that seems to be generally okay on
the outside and inside, this would be:
- correct answer Disallowed
Fannie Mae is owned by:
- correct answer Shareholders
What is the function of the FHA in regards to loans?
- correct answer The FHA insures loans
2026\2027 A+ Grade
A broker's protection clause, when inserted into a listing agreement, serves this function:
- correct answer To entitle the broker a commission if the property is sold to parties with whom he/she
has negotiated during the term of the listing for a stated number of days after the listing expires
A legal document pledging a property to the lender as security for payment of a debt is called:
- correct answer A mortgage
What does a desist and refrain order do if issued by the real estate commissioner?
- correct answer Places a halt to sales and marketing of properties in a subdivision
Federal income tax liens, state income tax liens, and judgement liens are all examples of:
- correct answer General liens
Under which law is it not permissible for a broker to only sell a property under the condition that the
broker obtains the listing for future sales?
- correct answer Sherman Act
A deed is a legal document that:
- correct answer Conveys title to property
If either a negative covenant or an affirmative covenant is breached, the remedies are either:
- correct answer Monetary or injunctive relief
If a lender is issuing an FHA or VA loan, where does the funding originate?
- correct answer From the lender
,The nominal interest rate is:
- correct answer The rate of interest specified in the note
Government surveys use sections, townships, and ranges to describe what about land?
- correct answer Location
A CMA typically will include data on:
- correct answer All of these
The duration is the primary characteristic that distinguishes a ____________ from a _____________.
- correct answer Freehold estate, Non-Freehold estate
When a real estate developer obtains a loan for building a new housing tract and the lender gives part of
the funds to the developer and agrees to release the rest of the funds as each home is built, this is called
which type of financing:
- correct answer Obligatory
Demand for property requires what two factors of the populace to be effective?
- correct answer Desire and means
If Walter, a real estate agent, fails to perform the due diligence to verify a seller's information, Walter
can be held responsible for:
- correct answer Misrepresentation
Scarcity, Demand, Utility, and Transferability are also known as:
- correct answer The four elements of value
In appraising unique properties, which approach is best for determining value:
Incorrect
- correct answer Cost
In Indiana, if an agent wishes to purchase a listing that is procured by his or her supervising broker, the
agent must
- correct answer Notify the owner in writing that he or she is a licensee
,If a person owes money to another person, the person who is owed the money is referred to as the:
- correct answer Creditor
The party that accepts the endorsed note from the original payee without knowledge of any defects is
known as:
- correct answer Holder in due course
Airways above a property are:
- correct answer Public domain
If a broker shows a home to a potential buyer and they wish to make an offer on it, what legal
responsibility does the broker owe the customer?
- correct answer Honest and fair treatment
The height of most ceilings in a single family home is:
- correct answer 8 feet
When determining the "loan-to-value" of a property, it is:
- correct answer The percentage relationship between the amount of the loan and the appraised value
or sales price
Even if a person has a low credit worthiness, the Fair Housing Law requires:
- correct answer That the lender reconfigure the loan requirements to fit the individual
None of these
That the lender make the loan anyway at a higher interest rate
That the lender make a good faith attempt to obtain a loan
: none of these
In regards to the borrower in a mortgage agreement, they would NOT be called the:
- correct answer Mortgagee
Usurer
Lessor
, Any of these
: any of these
One of the main differences between a mortgage broker and a mortgage banker is:
- correct answer The source of the funds used for loans
How does the FHA insure loans?
- correct answer Mutual mortgage insurance
What is sufficient disclosure in an ad for a home?
- correct answer Annual percentage rate
If there is an easement appurtenant, there must also be:
- correct answer A dominant tenement
If a person who works for a non-profit organization wants to participate in an employer-sponsored
investment plan that allows them to set aside tax-deferred income for retirement or emergency
purposes, they would enroll in a:
- correct answer A 403(b) plan is provided by a non-profit organization to allow individuals to set aside
tax-deferred income for retirement or emergency purposes. A 401(k) is provided by private for-profit
corporations.
If an "as-is" clause is inserted into the sales contract for a property that seems to be generally okay on
the outside and inside, this would be:
- correct answer Disallowed
Fannie Mae is owned by:
- correct answer Shareholders
What is the function of the FHA in regards to loans?
- correct answer The FHA insures loans
