Indiana Real Estate National Exam
Questions with Answers
The ____ is fully responsible for the actions preformed in the course of real estate business by
all persons licensed under ______. - ✔✔Broker, Broker
The _____ can carry out ONLY those responsbilties assigned by employing ____. -
✔✔Salesperson, broker
A salesperson can receive ______ ONLY from that broker. - ✔✔compensation
A salesperson has _______ to make contracts with or ______ from any other party. - ✔✔no
authority, receive compensation
A brokers commission is specified in the ______ with the principal. - ✔✔contract
Independent contractors must have .... - ✔✔1. Current real estate licenses
2. Licensee must have a written contract w/ broker ( Tax Reasons)
3. At least 90 % of the individuals income as a licensee must be based on sales production and
NOT on # of hours worked.
Anti-trust violations - ✔✔price-fixing, group boycotting, allocation of customers and markets,
tie-in agreements
Exclusive right to sell listing - ✔✔In this agreement, the agent gets paid no matter who sells the
property, regardless of whether it's the agent or the seller
,Exclusive agency listing - ✔✔Agents get paid in this type of agreement only if they sell the
property. No fee is earned if the owner sells the property on his own
Open listing - ✔✔In this type of agreement, sellers have the right to use as many brokers as
they want. The seller is not, however, obligated to pay any of them if he sells the property
Net listing - ✔✔This type of agreement is illegal in some states. The agent gets to keep
everything he can get that's more than the sale price the owner wants
Fiduciary - ✔✔The relationship between an agent and a client
What are the fiduciary duties of a real estate agent to his/her client? - ✔✔Accounting, Care,
Confidentiality, Disclosure, Loyalty, Obedience
Tenancy in severalty - ✔✔type of ownership is by a single person or a corporation, and not
being married doesn't have anything to do with it
Tenancy in common - ✔✔Equal or unequal undivided ownership between two or more people
is what characterizes this type of ownership. If an owner dies, the deceased person's share is
conveyed to his or her heirs, not the other owners
(Joint tenancy)The four unities that must exist for this type of ownership to exist are: -
✔✔1.Interest: Each owner has the same interest.
2.Possession: All owners hold an undivided interest.
3.Time: All owners receive their interest at the same time.
4.Title: All owners acquire their interest with the same deed.
If one owner of a joint tenancy dies - ✔✔That owner's interest reverts to the other owners. This
right of survivor-ship may vary by state.
, Tenancy by the entirety - ✔✔Available only to married couples, tenancy by the entirety means
that property may not be sold without the agreement of both parties. The right of survivorship
exists to the extent that if one spouse dies, his/her interest reverts to the other spouse
Adverse possession - ✔✔When someone uses your property, you may end up losing the
property or having your rights to the property restricted.
Avulsion - ✔✔the sudden loss of land by an act of nature like a landslide
Dedication - ✔✔you essentially give it up voluntarily to the government. An example is a
developer giving up streets in a subdivision.
Erosion - ✔✔the gradual loss of land by an act of nature, like property lost along the bank of a
river.
Partition - ✔✔a legal proceeding to divide property owned by two or more people.
Public grant - ✔✔just the opposite of dedication; the government actually is giving property to
private individuals.
Condominium - ✔✔owner actually owns real estate. This ownership is usually the air space and
an interest as a tenant in common of the land.
cooperative - ✔✔owner owns shares in a corporation that owns a building. The shareholder
also gets a proprietary lease, which enables the shareholder to occupy a unit.
Foreclosure - ✔✔is the loss of property to pay off a debt.
Forfeiture - ✔✔losing the property because of disobeying a condition in the deed.
Questions with Answers
The ____ is fully responsible for the actions preformed in the course of real estate business by
all persons licensed under ______. - ✔✔Broker, Broker
The _____ can carry out ONLY those responsbilties assigned by employing ____. -
✔✔Salesperson, broker
A salesperson can receive ______ ONLY from that broker. - ✔✔compensation
A salesperson has _______ to make contracts with or ______ from any other party. - ✔✔no
authority, receive compensation
A brokers commission is specified in the ______ with the principal. - ✔✔contract
Independent contractors must have .... - ✔✔1. Current real estate licenses
2. Licensee must have a written contract w/ broker ( Tax Reasons)
3. At least 90 % of the individuals income as a licensee must be based on sales production and
NOT on # of hours worked.
Anti-trust violations - ✔✔price-fixing, group boycotting, allocation of customers and markets,
tie-in agreements
Exclusive right to sell listing - ✔✔In this agreement, the agent gets paid no matter who sells the
property, regardless of whether it's the agent or the seller
,Exclusive agency listing - ✔✔Agents get paid in this type of agreement only if they sell the
property. No fee is earned if the owner sells the property on his own
Open listing - ✔✔In this type of agreement, sellers have the right to use as many brokers as
they want. The seller is not, however, obligated to pay any of them if he sells the property
Net listing - ✔✔This type of agreement is illegal in some states. The agent gets to keep
everything he can get that's more than the sale price the owner wants
Fiduciary - ✔✔The relationship between an agent and a client
What are the fiduciary duties of a real estate agent to his/her client? - ✔✔Accounting, Care,
Confidentiality, Disclosure, Loyalty, Obedience
Tenancy in severalty - ✔✔type of ownership is by a single person or a corporation, and not
being married doesn't have anything to do with it
Tenancy in common - ✔✔Equal or unequal undivided ownership between two or more people
is what characterizes this type of ownership. If an owner dies, the deceased person's share is
conveyed to his or her heirs, not the other owners
(Joint tenancy)The four unities that must exist for this type of ownership to exist are: -
✔✔1.Interest: Each owner has the same interest.
2.Possession: All owners hold an undivided interest.
3.Time: All owners receive their interest at the same time.
4.Title: All owners acquire their interest with the same deed.
If one owner of a joint tenancy dies - ✔✔That owner's interest reverts to the other owners. This
right of survivor-ship may vary by state.
, Tenancy by the entirety - ✔✔Available only to married couples, tenancy by the entirety means
that property may not be sold without the agreement of both parties. The right of survivorship
exists to the extent that if one spouse dies, his/her interest reverts to the other spouse
Adverse possession - ✔✔When someone uses your property, you may end up losing the
property or having your rights to the property restricted.
Avulsion - ✔✔the sudden loss of land by an act of nature like a landslide
Dedication - ✔✔you essentially give it up voluntarily to the government. An example is a
developer giving up streets in a subdivision.
Erosion - ✔✔the gradual loss of land by an act of nature, like property lost along the bank of a
river.
Partition - ✔✔a legal proceeding to divide property owned by two or more people.
Public grant - ✔✔just the opposite of dedication; the government actually is giving property to
private individuals.
Condominium - ✔✔owner actually owns real estate. This ownership is usually the air space and
an interest as a tenant in common of the land.
cooperative - ✔✔owner owns shares in a corporation that owns a building. The shareholder
also gets a proprietary lease, which enables the shareholder to occupy a unit.
Foreclosure - ✔✔is the loss of property to pay off a debt.
Forfeiture - ✔✔losing the property because of disobeying a condition in the deed.
