INDIANA REAL ESTATE COMMISSION (IREC) & LICENSING LAWS
PRACTICE EXAM
COMPLETE REVIEWER WITH ANSWERS 2025/2026
1. What is the primary purpose of the Indiana Real Estate Commission (IREC)?
a) To increase the number of real estate licensees in the state
b) To safeguard the public interest by requiring high standards of knowledge and ethical practice
c) To resolve financial disputes between real estate licensees
d) To promote homeownership in Indiana
Correct Answer ✔✔: b) To safeguard the public interest by requiring high standards of
knowledge and ethical practice
Rationale: The IREC's fundamental mission is consumer protection. It exists to protect the
public from incompetent or unethical behavior by licensees by setting and enforcing educational
and professional standards.
2. How are members of the Indiana Real Estate Commission (IREC) selected?
a) They are elected by licensed real estate professionals in Indiana.
b) They are voted in by the public during state elections.
c) They are appointed by the governor.
d) They are hired by the Professional Licensing Agency (PLA).
Correct Answer ✔✔: c) They are appointed by the governor.
Rationale: The IREC is a governor-appointed body, not an elected one. This is standard for
many state regulatory boards.
,3. What is the term length for a member of the Indiana Real Estate Commission?
a) 2 years
b) 3 years
c) 4 years
d) 5 years
Correct Answer ✔✔: c) 4 years
Rationale: Commission members serve a term of four years, providing some stability and
continuity to the regulatory body.
4. To serve as one of the nine district members on the IREC, an individual must have been
a licensed broker for at least how long?
a) 2 years
b) 3 years
c) 5 years
d) 10 years
Correct Answer ✔✔: c) 5 years
Rationale: A key requirement for district members is significant industry experience, which is
defined as being a licensed broker for a minimum of five years prior to appointment.
5. The three "members at large" on the IREC are required to:
a) Be licensed brokers from neighboring states.
b) Have never been professionally licensed in real estate.
c) Be attorneys specializing in real estate law.
d) Be managing brokers with over 10 years of experience.
,Correct Answer ✔✔: b) Have never been professionally licensed in real estate.
Rationale: Members at large provide a layperson's perspective to the Commission, ensuring the
public's viewpoint is represented. They must not have a professional license to maintain this
unbiased outlook.
6. What is the primary function of the Indiana Professional Licensing Agency (PLA)?
a) To write the state's real estate licensing exam
b) To act as a front office for various regulatory commissions, including the IREC
c) To conduct ethics hearings for REALTOR® associations
d) To provide legal counsel to the IREC
Correct Answer ✔✔: b) To act as a front office for various regulatory commissions, including
the IREC
Rationale: The PLA handles the administrative, day-to-day functions for boards and
commissions that only meet periodically, such as processing licenses and managing funds.
7. A quorum for an IREC meeting is defined as:
a) A simple majority of the members
b) At least 7 of the 12 members
c) All 12 members must be present
d) At least 4 members
Correct Answer ✔✔: b) At least 7 of the 12 members
Rationale: With 12 total members, a quorum of 7 is required to officially conduct business and
make binding decisions for the Commission.
, 8. From which fund are the per diem payments for IREC members paid?
a) The Real Estate Recovery Fund
b) The Commission's private bank account
c) The State's General Fund
d) Fines collected from licensees
Correct Answer ✔✔: c) The State's General Fund
Rationale: The IREC does not maintain its own bank account. Compensation and travel
reimbursement for members are paid from the state's General Fund.
9. In Indiana, holding a real estate license is considered:
a) A right
b) A privilege
c) An entitlement
d) A guarantee
Correct Answer ✔✔: b) A privilege
Rationale: A license is a privilege granted by the state, not a constitutional right. This privilege
can be suspended or revoked if the licensee fails to meet the state's standards.
10. Who serves as the legal counsel for the Indiana Real Estate Commission?
a) The Executive Director of the PLA
b) A private law firm hired by the Commission
c) The Attorney General
d) The Chairman of the IREC
PRACTICE EXAM
COMPLETE REVIEWER WITH ANSWERS 2025/2026
1. What is the primary purpose of the Indiana Real Estate Commission (IREC)?
a) To increase the number of real estate licensees in the state
b) To safeguard the public interest by requiring high standards of knowledge and ethical practice
c) To resolve financial disputes between real estate licensees
d) To promote homeownership in Indiana
Correct Answer ✔✔: b) To safeguard the public interest by requiring high standards of
knowledge and ethical practice
Rationale: The IREC's fundamental mission is consumer protection. It exists to protect the
public from incompetent or unethical behavior by licensees by setting and enforcing educational
and professional standards.
2. How are members of the Indiana Real Estate Commission (IREC) selected?
a) They are elected by licensed real estate professionals in Indiana.
b) They are voted in by the public during state elections.
c) They are appointed by the governor.
d) They are hired by the Professional Licensing Agency (PLA).
Correct Answer ✔✔: c) They are appointed by the governor.
Rationale: The IREC is a governor-appointed body, not an elected one. This is standard for
many state regulatory boards.
,3. What is the term length for a member of the Indiana Real Estate Commission?
a) 2 years
b) 3 years
c) 4 years
d) 5 years
Correct Answer ✔✔: c) 4 years
Rationale: Commission members serve a term of four years, providing some stability and
continuity to the regulatory body.
4. To serve as one of the nine district members on the IREC, an individual must have been
a licensed broker for at least how long?
a) 2 years
b) 3 years
c) 5 years
d) 10 years
Correct Answer ✔✔: c) 5 years
Rationale: A key requirement for district members is significant industry experience, which is
defined as being a licensed broker for a minimum of five years prior to appointment.
5. The three "members at large" on the IREC are required to:
a) Be licensed brokers from neighboring states.
b) Have never been professionally licensed in real estate.
c) Be attorneys specializing in real estate law.
d) Be managing brokers with over 10 years of experience.
,Correct Answer ✔✔: b) Have never been professionally licensed in real estate.
Rationale: Members at large provide a layperson's perspective to the Commission, ensuring the
public's viewpoint is represented. They must not have a professional license to maintain this
unbiased outlook.
6. What is the primary function of the Indiana Professional Licensing Agency (PLA)?
a) To write the state's real estate licensing exam
b) To act as a front office for various regulatory commissions, including the IREC
c) To conduct ethics hearings for REALTOR® associations
d) To provide legal counsel to the IREC
Correct Answer ✔✔: b) To act as a front office for various regulatory commissions, including
the IREC
Rationale: The PLA handles the administrative, day-to-day functions for boards and
commissions that only meet periodically, such as processing licenses and managing funds.
7. A quorum for an IREC meeting is defined as:
a) A simple majority of the members
b) At least 7 of the 12 members
c) All 12 members must be present
d) At least 4 members
Correct Answer ✔✔: b) At least 7 of the 12 members
Rationale: With 12 total members, a quorum of 7 is required to officially conduct business and
make binding decisions for the Commission.
, 8. From which fund are the per diem payments for IREC members paid?
a) The Real Estate Recovery Fund
b) The Commission's private bank account
c) The State's General Fund
d) Fines collected from licensees
Correct Answer ✔✔: c) The State's General Fund
Rationale: The IREC does not maintain its own bank account. Compensation and travel
reimbursement for members are paid from the state's General Fund.
9. In Indiana, holding a real estate license is considered:
a) A right
b) A privilege
c) An entitlement
d) A guarantee
Correct Answer ✔✔: b) A privilege
Rationale: A license is a privilege granted by the state, not a constitutional right. This privilege
can be suspended or revoked if the licensee fails to meet the state's standards.
10. Who serves as the legal counsel for the Indiana Real Estate Commission?
a) The Executive Director of the PLA
b) A private law firm hired by the Commission
c) The Attorney General
d) The Chairman of the IREC
