How to Pass the Indiana Real Estate
Exam in 2026

About 12 questions test how Indiana defines real property, fixtures, legal descriptions, estates, and encumbrances. Indiana relies heavily on the government rectangular survey, supplemented by recorded plats and metes-and-bounds for irregular parcels. Indiana is a lien-theory state: a mortgage creates a lien while the borrower retains legal title. Indiana is NOT a community-property state — property is divided by equitable distribution at divorce. Title is usually conveyed by a warranty deed, with quitclaim deeds used to remove clouds. Pitfall: candidates assume community property from national content; Indiana never uses it. Worked example: a furnace permanently installed in a home is a fixture and passes with the real estate unless excluded in writing. Click2CE drills fixture tests and deed-type distinctions because they appear on every cycle.

About 15 questions cover agency, limited agency, fiduciary duties, and disclosure under Indiana license law. Indiana uses the term "limited agency" rather than dual agency: a licensee or firm may represent both buyer and seller in the same transaction only with the written consent of both parties, and the limited agent owes reduced, balanced duties to each. Statutory duties include loyalty, confidentiality, disclosure of adverse material facts, accounting, and reasonable care. Pitfall #1: candidates expect "dual agency" wording and miss Indiana's "limited agency" term. Pitfall #2: missing that agency disclosure must occur before confidential information is exchanged. Worked example: a brokerage representing both sides of one deal operates as a limited agent with informed written consent. Click2CE drills the limited-agency vocabulary so wording-based questions are automatic.

About 15 questions cover contract law, purchase agreements, contingencies, breach, and remedies. Indiana follows standard contract elements — offer, acceptance, consideration, legal capacity, legal purpose — and requires real estate contracts to be in writing under the statute of frauds. Earnest money is held in the broker's escrow/trust account. Contingencies for financing, inspection, and appraisal are common, each with defined deadlines. Pitfall #1: candidates miss that an accepted counteroffer rejects the original offer. Pitfall #2: confusing inspection-contingency timelines with financing deadlines. Worked example: a buyer who fails to deliver written inspection objections by the deadline waives the contingency and proceeds toward closing. Indiana does not impose a statutory attorney-review period like some neighboring states. Click2CE walks the standard purchase agreement section by section so deadline questions become routine.

About 12 questions cover mortgage instruments, loan qualification, government-backed loans, and settlement procedures. Indiana uses mortgages (lien theory) and is primarily a JUDICIAL foreclosure state — the lender files suit, obtains a judgment, and the property is sold at a sheriff's sale after a statutory pre-sale period. Pitfall: candidates assume a quick non-judicial power-of-sale process; Indiana generally requires court action. TRID, TILA, and RESPA apply federally. The Indiana Housing and Community Development Authority offers down-payment and first-time buyer assistance. Worked example: after default, the lender files a foreclosure complaint and the borrower has a pre-sale period before the sheriff's sale. Click2CE drills the judicial-foreclosure timeline and federal disclosure rules because they reliably appear on the exam.

About 8 questions cover the federal Fair Housing Act and Indiana's civil rights law. The federal Act protects race, color, religion, national origin, sex, familial status, and disability. Indiana's fair housing law mirrors the federal classes and is enforced by the Indiana Civil Rights Commission; some local ordinances add further protections. Pitfall #1: candidates confuse prohibited practices such as steering, blockbusting, and redirecting buyers based on protected status. Pitfall #2: forgetting that disability accommodations include allowing reasonable modifications and assistance animals. Worked example: steering a family with children away from certain buildings violates familial-status protections. Click2CE drills the prohibited-practice scenarios and the federal/Indiana class lists every cycle so application questions are second nature.

The largest section — about 25 questions on Indiana license law, Indiana Professional Licensing Agency (IPLA) oversight, the Indiana Real Estate Commission, trust accounts, seller disclosure, lead-based paint, and radon disclosure. Indiana requires a Sales Disclosure/Seller's Residential Real Estate Disclosure form for most residential 1-4 unit sales, and federal lead-based-paint disclosure for pre-1978 housing. Indiana also requires radon disclosure language because of widespread radon zones. Pre-license education is 90 hours. Pitfall #1: candidates miss the radon disclosure requirement that is distinctive to Indiana practice. Pitfall #2: confusing the seller disclosure timing with inspection deadlines. Worked example: a seller of a 1970 home must provide the federal lead-based-paint disclosure plus the Indiana residential disclosure before the buyer is obligated. Click2CE drills the Indiana disclosure stack and license structure heavily.

About 14 questions cover the three approaches to value, CMA, commission calculations, and prorations. A broker's CMA or BPO is not an appraisal and cannot substitute for one in a federally related transaction. Indiana prorations commonly use a statutory 360-day banker's year unless the contract states otherwise, and property taxes are paid in arrears — a frequent trap. Pitfall: candidates forget that Indiana taxes lag, so the seller credits the buyer for accrued but unbilled taxes at closing. Worked example: closing mid-year with $3,600 annual taxes → daily rate $10 × elapsed days = the seller's credit to the buyer. The income approach uses cap rate (NOI ÷ value) and GRM (price ÷ gross rent). Click2CE's AI Tutor walks each calculation step-by-step so math stops being a guess.

About 6 questions cover landlord-tenant law, lease agreements, security deposits, and eviction. Indiana landlord-tenant law sets rules for security-deposit return — landlords must return deposits with an itemized statement of deductions within the statutory period (commonly 45 days) after the tenant vacates and provides a forwarding address. Eviction proceeds through the courts after proper notice; a 10-day notice for nonpayment is typical. Pitfall #1: candidates miss the deposit-return deadline and the requirement to itemize deductions. Pitfall #2: confusing notice periods for nonpayment versus lease violations. Worked example: a landlord who fails to return the deposit or itemize within the statutory window may forfeit the right to withhold and owe the tenant. Click2CE drills the deposit timeline and eviction-notice rules every cycle.

About 8 questions cover closing procedures, settlement statements, title insurance, and escrow. Indiana closings are commonly handled by title companies, and title is insured through owner's and lender's policies based on a title commitment reviewed before closing. The Closing Disclosure must reach the borrower at least three business days before consummation under TRID. Pitfall #1: candidates confuse the title commitment with the final policy. Pitfall #2: forgetting the federal 3-business-day Closing Disclosure waiting period. Worked example: a Closing Disclosure delivered Monday permits a Thursday closing at the earliest. Recording fees and prorated taxes are reconciled on the settlement statement. Click2CE drills the closing timeline and the title-document sequence so settlement questions are predictable.