INDIANA REAL ESTATE exam questions and answers with solutions 2025

INDIANA REAL ESTATE exam questions and
answers with solutions 2025
Abandonment - ANSWER The failure to occupy and use property that may result in loss of rights
A A A A A A A A A A A A A A A A




Abatement of Nuisance - ANSWER Extinction or termination of a nuisance
A A A A A A A A A A




Abstract of Judgement - A A A



ANSWER A condensation of the essential provisions of a court judgement
A A A A A A A A A A A




Abstract of Title - A A A



AANSWER A summary or digest of all transfers, conveyances, legal proceedings, and any other fact
A A A A A A A A A A A A A A



s relied on as evidence of title, showing continuity of ownership, together with any other elemen
A A A A A A A A A A A A A A A



ts of record which may impair title
A A A A A A




Absolute of Ownership - A A A



ANSWER The maximum possible estate in land in which owner holds unconditional power of dis
A A A A A A A A A A A A A A A



position; an estate freely transferable and inheritable (Fee Simple)
A A A A A A A A




Abstraction - A



ANSWER A method valuing land. The indicated value of the improvement is deducted from the s
A A A A A A A A A A A A A A A A



ale price. A




Accelerate Cost Recovery System - A A A A



ANSWER The system for figuring depreciation (cost recovery) for depreciable real estate acquire
A A A A A A A A A A A A A



d and placed into service after January 1, 1981. (ACRS)
A A A A A A A A A




Accelerated Depreciation - ANSWER A method of cost write-
A A A A A A A A



off in which depreciation allowances are greater in the first few years of ownership than in subse
A A A A A A A A A A A A A A A A



quent years. This permits an earlier recovery of capital and a faster tax write-off of an asset.
A A A A A A A A A A A A A A A A

,Acceleration Clause - A A



AANSWER A conditional in a real estate financing instrument giving the lender the power to declar
A A A A A A A A A A A A A A A



e all sums owing lender immediately due and payable upon the happening of an event, such as sa
A A A A A A A A A A A A A A A A A



le of the property, or a delinquency in the repayment of the note.
A A A A A A A A A A A A




Acceptance - A



ANSWER The act of agreeing or consenting to the terms of an offer thereby establishing the "me
A A A A A A A A A A A A A A A A A



eting of the minds" that is an essential element of the contract.
A A A A A A A A A A A




Access Right - A A



ANSWER The right of an owner to have ingress and egress to and from owner's property over adj
A A A A A A A A A A A A A A A A A A



oining property. A




Accretion - ANSWER Accession by natural forces, e.g. alluvium.
A A A A A A A A




Accrued Depreciation - A A



ANSWER The difference between the cost of replacement new as of the date of the appraisal an
A A A A A A A A A A A A A A A A A



d the present appraised value.
A A A A




Accrued items of expense - A A A A



AANSWER Those incurred expenses which are not yet payable. The seller's accrued expenses are c
A A A A A A A A A A A A A A



redited to the purchaser in a closing statement.
A A A A A A A




Acknowledgment - A



ANSWER A formal declaration made before an authorized person, e.g., a notary public, by a pers
A A A A A A A A A A A A A A A A



on who has executed an instrument stating that the execution was his or her free act. In this state
A A A A A A A A A A A A A A A A A A



an acknowledgment is the statement by an officer such as a notary that the signatory to the instr
A A A A A A A A A A A A A A A A A A



ument is the person represented to be.
A A A A A A




Acoustical Tile - ANSWER Blocks of fiber, mineral or metal, with small holes or rough-
A A A A A A A A A A A A A A



textured surface to absorb sound, used as covering for an interior walls and ceilings.
A A A A A A A A A A A A A

,Acquisition - ANSWER The act or process by which a person procures property.
A A A A A A A A A A A A




Acre - A



ANSWER A measure of land equaling 160 square rods, or 4,840 square yards, or 43,560 square fe
A A A A A A A A A A A A A A A A A



et.



Actual Authority -
A A



ANSWER Authority expressly given by the principal or given by the law and not denied by the pri
A A A A A A A A A A A A A A A A A A



ncipal.



Actual Fraud - A A



AANSWER An act intended to deceive another, e.g., making a false statement, making a promise w
A A A A A A A A A A A A A A A



ithout intending to perform it, suppressing the truth.
A A A A A A A




Addendum - A



ANSWER Additional pages of material that are added to and become part of a contract.
A A A A A A A A A A A A A A A




Adjustable Rate Mortgage (ARM) -
A A A A



ANSWER A mortgage loan which bears interest at a rate subject to change during the term of the
A A A A A A A A A A A A A A A A A A



loan, predetermined or otherwise.
A A A A




Adjustments - A



ANSWER In appraising, a means by which characteristics of a residential property are regulated b
A A A A A A A A A A A A A A A



y dollar amount or percentage to conform to similar characteristics of another residential propert
A A A A A A A A A A A A A



y.



Administrator - A



ANSWER A person appointed by the probate court to administer the estate of a deceased person
A A A A A A A A A A A A A A A A



who died intestate. (Administratrix, the female form)
A A A A A A A

, ADR - ANSWER See ALTERNATIVE DISPUTE RESOLUTION
A A A A A A




Ad Valorem -
A A



ANSWER A Latin phase meaning "according to value," Usually used in connection with real estate
A A A A A A A A A A A A A A A



taxation.
A




Advance - ANSWER Transfer of funds from a lender to a borrower in advance on a loan.
A A A A A A A A A A A A A A A A




Advance Commitment - ANSWER The institutional investor's prior agreement to provide long-
A A A A A A A A A A A



term financing upon completion of construction; also known as a "take-out" loan commitment.
A A A A A A A A A A A A




Advance Fees - A A



ANSWER A fee paid in advance of any services rendered. Sometimes unlawfully charged in conne
A A A A A A A A A A A A A A A



ction with that illegal practice of obtaining a fee in advance for the advertising of a property or bu
A A A A A A A A A A A A A A A A A A



sinesses for sale, with no intent to obtain a buyer, by persons representing themselves as real est
A A A A A A A A A A A A A A A A



ate licensees, or representatives of licensed real estate firms.
A A A A A A A A




Adverse Possession -A A



AANSWER A method of acquiring title to real property through possession of the property for a sta
A A A A A A A A A A A A A A A A



tutory period under certain conditions by a person other than the owner of record.
A A A A A A A A A A A A A




Affiant - ANSWER One who makes an affidavit or gives evidence.
A A A A A A A A A A




Affidavit - A



ANSWER A statement or declaration reduced to writing sworn to or affirmed before some officer
A A A A A A A A A A A A A A A



who has authority to administer an oath or affirmation.
A A A A A A A A A




Affidavit of Title -A A A



ANSWER A statement, in writing, made under oath by seller or grantor, acknowledged
A A A A A A A A A A A A A