Free Indiana Real Estate Practice Exam

Q1.A real estate agent is working with a buyer to purchase a home with a $300,000 purchase price. Under RESPA requirements, when must the Loan Estimate be provided to the borrower?

• A.Within 1 business day of loan application
• B.Within 3 business days of loan application
• C.Within 5 business days of loan application
• D.At least 7 business days before closing

Q2.A deed restriction that prohibits the sale of alcohol on a property is an example of what type of land use control?

• A.Public land use control
• B.Governmental regulation
• C.Zoning ordinance
• D.Private land use control

Q3.An Indiana licensed broker wants to run an online advertisement for a listed home. Under 876 IAC advertising rules, which of the following elements is REQUIRED to appear in the advertisement?

• A.The broker's personal cell phone number
• B.The name of the licensed broker or brokerage under which the broker is licensed
• C.The full street address of the brokerage company
• D.The broker's individual license number

Q4.A licensed real estate broker from Kentucky wishes to obtain an Indiana real estate Broker license through reciprocity. Under IC 25-34.1-3-9 and Indiana Real Estate Commission policy, which of the following statements is MOST accurate regarding Indiana's reciprocal licensing for nonresidents?

• A.Indiana has full reciprocity with all U.S. states, so any out-of-state licensee may obtain an Indiana license simply by submitting proof of their current license with no additional requirements
• B.Indiana offers reciprocity with certain states whose licensing requirements are determined to be substantially equivalent, and the applicant must still submit an Indiana application, pay applicable fees, and may be required to pass the Indiana state portion of the examination
• C.Nonresident applicants are never required to take any portion of the Indiana examination, regardless of their home state's licensing standards
• D.A nonresident broker may practice Indiana real estate on a permanent basis using only their home state license without obtaining any Indiana license

Q5.Under the Truth in Lending Act (TILA), which disclosure must a lender provide to a borrower applying for a mortgage loan, and within what timeframe must it be delivered after application?

• A.The Loan Estimate, within three business days of application
• B.The Good Faith Estimate, within five business days of application
• C.The Closing Disclosure, within three business days of application
• D.The HUD-1 Settlement Statement, within one business day of application

Q6.In states that follow the doctrine of caveat emptor, what is the seller's primary disclosure obligation?

• A.Disclose all known defects regardless of their significance
• B.Disclose only defects that affect health and safety
• C.Disclose only latent defects that are not readily observable
• D.No disclosure obligation except for federally mandated disclosures

Q7.At closing, which party typically pays for the owner's title insurance policy in most standard real estate transactions?

• A.The buyer
• B.The listing agent
• C.The mortgage lender
• D.The seller

Q8.A property manager refuses to rent a ground-floor unit to an applicant who uses a wheelchair, claiming the unit is 'not suitable' for disabled tenants, and instead steers the applicant to a first-floor unit in an older, less desirable building. Which Fair Housing Act violation BEST describes this conduct?

• A.Blockbusting
• B.Steering
• C.Redlining
• D.Constructive eviction

Q9.A property manager collects security deposits and monthly rents for several residential properties. Under generally accepted property management principles and fiduciary duty standards, how must these funds be handled?

• A.All collected funds may be deposited into the property manager's personal operating account for convenience, provided accurate records are maintained
• B.Tenant security deposits and rents must be kept in a separate trust or escrow account, distinct from the property manager's personal and business funds
• C.Security deposits may be commingled with operating funds as long as the manager can account for each deposit upon request
• D.Rental income must be forwarded to the property owner within 24 hours of collection to avoid any fiduciary liability

Q10.A landlord refuses to rent an apartment to a person who uses a wheelchair, stating the building is not equipped for wheelchair access. Which federal law does this most directly violate?

• A.The Americans with Disabilities Act (ADA)
• B.The Rehabilitation Act of 1973
• C.The Fair Housing Act Amendments of 1988
• D.The Civil Rights Act of 1866

Q11.According to 876 IAC 3-2-1, how often must the Indiana Real Estate Commission hold regular meetings?

• A.Monthly
• B.Quarterly
• C.Semi-annually
• D.Annually

Q12.A real estate office is preparing to list a property that was previously used as a dry cleaner. Under federal environmental law, what is the office's primary obligation regarding potential environmental contamination?

• A.Conduct a Phase I Environmental Site Assessment before listing
• B.Disclose known environmental hazards and recommend professional environmental inspection
• C.Obtain environmental insurance for the property
• D.Remediate any contamination before marketing the property

Q13.Under Indiana Code 25-34.1-2-8, which statement is correct regarding a salesperson's relationship with their supervising broker?

• A.A salesperson may work independently without broker supervision after two years of experience
• B.A salesperson must be supervised by and work under a licensed real estate broker at all times
• C.A salesperson may supervise other salespersons if they have completed additional training
• D.A salesperson may change supervising brokers without notifying the Real Estate Commission

Q14.A property manager refuses to rent a vacant apartment to a family because they have two young children, citing the property's 'adult-only' policy. Under the federal Fair Housing Act, this action is most likely:

• A.Permissible if the property has fewer than four units and the owner resides in one of them
• B.A violation of the Fair Housing Act's prohibition against familial status discrimination
• C.Permissible because private landlords may set reasonable occupancy standards
• D.A violation only if the family can prove the policy was applied inconsistently

Q15.Under the Fair Housing Act, which of the following actions by a real estate licensee would constitute illegal discrimination?

• A.Requiring all applicants to meet the same income qualifications
• B.Showing only properties within a client's stated price range
• C.Refusing to show properties in certain neighborhoods based on a client's race
• D.Requiring a security deposit from all tenants