Indiana Real Estate Commission Statutes and Rules Quiz (in class) with complete solutions.

Indiana Real Estate Commission Statutes and Rules Quiz (in class) with complete solutions. The Indiana Real Estate Commission consists of A. 12 district real estate commissioners B. 9 district commissioner and 3 citizen at-large commissioners C. 10 district commissioners and 2 citizen at-large commissioners D. 9 district commissioners, 2 citizen members at-large, and 1 real estate member at-large - correct answer. D. 9 district commissioners, 2 citizen members at-large, and 1 real estate member at-large To obtain an Indiana broker's license, an individual must A. be at least 19 years of age before applying for a license B. have successfully completed a 48 hour broker course C. have successfully completed a 90 hour broker course and pass a written state examination D. have successfully completed a 54 hour broker course, pass a written state examination, and have a sponsoring real estate broker - correct answer. C. have successfully completed a 90 hour broker course and pass a written state examination A broker A. may be associated with only one managing broker B. has the right, when transferring to a new managing broker, to take any listings they have with them C. when terminating their relationship with their managing broker, must have their license returned to the state within seven (7) business days D. may maintain an internet website without referencing their managing broker - correct answer. A. may be associated with only one managing broker In the event of the death of an individual managing broker, a broker associated with that managing broker A. may continue to take listings and close sales for up to 90 days B. must associate with a new managing broker within 90 days C. may continue to carry out business contracted for before the death of the managing broker for a maximum of 90 days, but must associate with a new managing broker before entering into any new business (listings or sales) D. must immediately associate with a new managing broker and transfer all business under contract to the new broker - correct answer. C. may continue to carry out business contracted for before the death of the managing broker for a maximum of 90 days, but must associate with a new managing broker before entering into any new business (listings or sales) A licensee who is convicted of a crime A. must report the conviction to the real estate commission when they renew their license B. must send a copy of the complaint or other information describing the crime to the commission within 30 days after the date of the conviction C. need only report serious convictions to the commission within 30 days after the date of the conviction D. must testify before the commission within 90 days regarding the nature of the conviction - correct answer. B. must send a copy of the complaint or other information describing the crime to the commission within 30 days after the date of the conviction Regarding the Real Estate Recovery Fund, the Real Estate Commission will assess a surcharge on license applications or renewals if the amount of money in the fund, on June 30 of odd-numbered years, drops below A. $400,000 B. $450,000 C. $600,000 D. $750,000 - correct answer. B. $450,000 An agency relationship involving two or more clients who are represented by different licensees within the same real estate firm is called A. a limited agency B. an exclusive agency C. an in-house agency relationship D. a cooperative agency - correct answer. C. an in-house agency relationship Which of the following sellers would not be required to complete a Residential Real Estate Sales Disclosure Form? A. The owner of a 4-unit residential building B. A builder selling a newly constructed single-family home C. A seller who is selling their home without the use of a real estate agent D. An out-of-state seller who is selling a house that has been rented for more than three years - correct answer. B. A builder selling a newly constructed single-family home Which of the following activities are allowed to be performed by an unlicensed real estate assistant? A. Telephone canvassing for listings B. Open houses C. Showing homes listed by their supervising licensee D. Preparing real estate flyers that are reviewed and approved by their supervising licensee - correct answer. D. Preparing real estate flyers that are reviewed and approved by their supervising licensee Which of the following is true about real estate commissioners? A. All commissioners are appointed by the Governor B. Real estate commissioners serve six year terms C. The Chairman of the commission is the Executive Director D. There must be nine commissioners present at a meeting to transact business - correct answer. A. All commissioners are appointed by the Governor Which of the following individuals would be required to have a real estate license? A. An employee of a real estate broker hired to rent residential apartment units B. A full-time, salaried employee of a builder hired to sell the builder's model homes C. An attorney soliciting listings from 'For Sale by Owners' D. A tenant showing vacant apartments in their building as a favor to the landlord - correct answer. C. An attorney soliciting listings from 'For Sale by Owners' Which of the following statements is true regarding the continuing education requirement for real estate licensees? A. Real estate licensees are required to complete at least eight hours of continuing education per years B. Real estate licensees are required to complete at least 36 hours of continuing education in each license renewal period C. Managing Brokers are exempt from the continuing education requirement D. Of the required continuing education hours, a licensee can have no more than six hours from the 'mandatory' category - correct answer. B. Real estate licensees are required to complete at least 36 hours of continuing education in each license renewal period A licensee has failed to renew their real estate license. How long after expiration does the licensee have to reinstate their license without having to re-take the state examination? A. One year B. 18 months C. Three years D. Five years - correct answer. C. Three years Which of the following is NOT true about purchase agreements in Indiana? A. They must be in writing to be enforceable B. They must be in quadruplicate C. They must be presented to the seller for acceptance or rejection within two business days D. They must show a definite expiration date - correct answer. C. They must be presented to the seller for acceptance or rejection within two business days A licensee is convicted of a felony, unrelated to their real estate practice. As a result of the conviction, which of the following may occur? A. The licensee's license is automatically revoked B. The licensee's license is summarily suspended for 90 days C. The licensee may be subject to discipline by the Commission for incompetent practice it is felt that the licensee should not be entrusted to serve the public D. The conviction has no bearing on the licensee's license since it was unrelated to his real estate practice - correct answer. C. The licensee may be subject to discipline by the Commission for incompetent practice it is felt that the licensee should not be entrusted to serve the public A buyer agent offers a $500 rebate to buyers who buy a home through him. Which of the following is true? A. This is a violation of license law. Rebates are prohibited B. This is allowable because the amount is less than $1,000 C. Rebates are allowable. No disclosures are required D. The rebate is allowable, but must be disclosed to all parties to the transaction - correct answer. D. The rebate is allowable, but must be disclosed to all parties to the transaction Which of the following people would be subject to Indiana license law? A. A County assessor B. The executrix of an estate C. A neighbor helping sell a property in exchange for use of a Florida time-share D. An auctioneer - correct answer. C. A neighbor helping sell a property in exchange for use of a Florida time-share Which of the following statements is true? A. Upon termination of a broker's license with a managing broker, the termination form must be returned to the licensing agency within 5 business days B. A broker may have at least one trust (escrow) account C. A broker may not have an unassigned license D. A broker may own up to 49% of a real estate company - correct answer. A. Upon termination of a broker's license with a managing broker, the termination form must be returned to the licensing agency within 5 business days Which of the following is true regarding advertising requirements? A. Advertising which carries a licensee's name must also contain the name of the managing broker or the firm name B. Advertising down by a broker may be done in their name only C. Display advertising must contain the name of the managing broker or firm, but classified ads do not D. Individual licensee's internet web sites are exempt from advertising requirements - correct answer. A. Advertising which carries a licensee's name must also contain the name of the managing broker or the firm name Which is true regarding "net" listings in the State of Indiana? A. Net listings may not be for more than six months duration B. Net listings must show a maximum amount of commission C. Commissions on net listings may not exceed $25,000 D. Net listings are illegal in Indiana - correct answer. B. Net listings must show a maximum amount of commission Which of the following is true regarding a managing broker's trust (escrow) account? A. Interest bearing accounts are not allowed B. Each branch office must have a separate escrow account C. The licensing agency may inspect a broker's records regarding escrow accounts at any time D. A managing broker may not have more than one trust (escrow) account - correct answer. C. The licensing agency may inspect a broker's records regarding escrow accounts at any time If a broker is unable to collect a commission from their managing broker, what action can be taken? A. File a complaint with the Indiana Association of Realtors B. File a lawsuit against the broker C. File a claim against the Real Estate Recovery Fund D. Seek court action to freeze the broker's escrow account - correct answer. B. File a lawsuit against the broker A person would NOT be required to have a real estate license if: A. they only receive finder's fees from real estate agents B. they rent a friend's house for them for no fee C. they are employed as a telemarketer for a real estate agency D. they only show properties for agents but do not write contracts - correct answer. B. they rent a friend's house for them for no fee If you are a licensee selling your own home, you A. may not, by law, list it with your managing broker B. must inform prospective buyers, in writing, of your interest in the property C. must inform buyers of your ownership interest only if it is listed with you managing broker D. need do nothing. It is no business of your broker since it is your own property - correct answer. B. must inform prospective buyers, in writing, of your interest in the property Which of the following is NOT true regarding listing contracts in the State of Indiana? A. They must be in duplicate B. They must show a definite expiration date C. They may be oral contracts if they are open listings D. They must be signed by all property owners and the broker - correct answer. C. They may be oral contracts if they are open listings Which of the following is NOT true about offers to purchase in the State of Indiana? A. They must be in writing to be enforceable B. They must be presented to the seller within 3 business days C. They must be in quadruplicate D. They must have an expiration date - correct answer. B. They must be presented to the seller within 3 business days