Free Indiana Real Estate Practice Exam

Q1.A lender is willing to make a loan with a loan-to-value ratio of 80%. If the property appraises for $250,000 and the sales price is $245,000, what is the maximum loan amount?

• A.$200,000
• B.$245,000
• C.$250,000
• D.$196,000

Q2.Under Indiana law, which situation best describes limited agency (dual agency) as regulated by IC 25-34.1-10?

• A.A broker represents two buyers who are competing to purchase the same property
• B.A broker represents both the buyer and the seller in the same transaction with the informed written consent of both parties
• C.A broker from one firm cooperates with a broker from another firm on a transaction
• D.A broker represents the seller but agrees to share the commission with an unrepresented buyer

Q3.A listing agent discovers that the property has environmental contamination issues that could trigger CERCLA liability. What fiduciary duty requires the agent to inform the seller of this discovery?

• A.Obedience
• B.Loyalty
• C.Accounting
• D.Disclosure

Q4.A licensed Indiana broker posts an online advertisement for a listed property that prominently features the broker's personal name and the phrase 'The #1 Agent in Indianapolis' but omits the name of the broker's licensed real estate company. The ad also states 'Call me directly—no broker fees!' Under 876 IAC 2-11 and IREC advertising rules, which violation is MOST clearly present?

• A.The advertisement is compliant because individual brokers are permitted to advertise under their own names without company identification in digital media.
• B.The advertisement violates Indiana advertising rules because it fails to include the name of the supervising broker or licensed company under which the broker is licensed.
• C.The primary violation is the unsubstantiated superlative claim '#1 Agent,' which requires FTC substantiation documentation filed with the IREC.
• D.The advertisement violates Indiana law only if the broker is affiliated with a franchise brokerage, which imposes additional name disclosure requirements.

Q5.A property manager discovers environmental contamination on a rental property that may require CERCLA (Superfund) involvement. What is the manager's primary federal obligation regarding current tenants?

• A.Immediately terminate all leases without notice to protect tenants
• B.Continue normal operations until EPA formally designates the site
• C.Report the contamination to EPA and potentially face liability as a current operator of the facility
• D.Transfer ownership to avoid CERCLA liability before EPA investigation

Q6.Under 876 IAC 4-1-8, a salesperson must notify the Indiana Real Estate Commission within how many days of a change in residence address?

• A.10 days
• B.15 days
• C.20 days
• D.30 days

Q7.Which of the following is generally TRUE about occupancy standards under the FHA?

• A.Two-per-bedroom is a fixed federal rule
• B.Occupancy limits cannot be applied to families with children at all
• C.HUD's Keating Memo treats two-per-bedroom as a presumptive starting point, evaluated against bedroom size, configuration, age of occupants, and local codes
• D.Landlords must accept any number of occupants requested by a tenant

Q8.Under Indiana real estate advertising rules governed by 876 IAC, which of the following is REQUIRED to appear in any advertisement placed by a licensed broker for a listed property?

• A.The broker's personal cell phone number
• B.The listing price of the property
• C.The name of the licensed brokerage (company) under which the broker is licensed
• D.The broker's individual license number

Q9.An Indiana broker is found to have intentionally misrepresented the square footage of a listing to a buyer. Under IC 25-34.1, which of the following disciplinary outcomes is the Indiana Real Estate Commission (IREC) authorized to impose?

• A.Issue a written warning only, because misrepresentation of square footage is a civil matter handled exclusively by the courts.
• B.Suspend or revoke the broker's license, impose a civil penalty, and require completion of additional education.
• C.Refer the matter solely to the Indiana Attorney General and take no direct disciplinary action.
• D.Require the broker to refund the commission earned on the transaction but take no further action against the license.

Q10.The bystander intervention strategy 'Distract' involves:

• A.Addressing the harassing behavior directly and calmly to the harasser
• B.Getting someone with more authority involved to address the conduct
• C.Interrupting the situation without confronting the harasser — pulling the target away
• D.Checking in with the targeted person after the harasser has moved on

Q11.After a real estate transaction closes in Indiana, which party is responsible under 876 IAC for ensuring that all transaction documents—including the purchase agreement, counteroffers, and addenda—are retained in the broker company's files?

• A.The individual salesperson (broker) who represented the buyer or seller in the transaction.
• B.The managing broker of the broker company.
• C.The closing attorney or title company that handled the settlement.
• D.The Indiana Real Estate Commission, which collects copies of all closing documents.

Q12.A licensed Indiana broker's license is about to expire. To renew the license on time, the broker must complete continuing education and submit a renewal application. How often must an Indiana broker renew their license?

• A.Every year
• B.Every two years
• C.Every three years
• D.Every four years

Q13.Under CERCLA (Superfund), which party is typically NOT liable for environmental cleanup costs at a contaminated property?

• A.Current property owner
• B.Previous property owner who owned during contamination
• C.Innocent purchaser who conducted due diligence
• D.Lender who forecloses and takes title

Q14.An Indiana managing broker receives an earnest money deposit from a buyer. Under 876 IAC, trust account records must be reconciled on a regular basis. Which of the following correctly describes the required reconciliation frequency?

• A.Trust accounts must be reconciled quarterly, at the end of each calendar quarter.
• B.Trust accounts must be reconciled annually at the close of each fiscal year.
• C.Trust accounts must be reconciled monthly.
• D.Trust accounts must be reconciled only when a transaction closes or is terminated.

Q15.An applicant for an Indiana real estate Broker license has completed the required pre-licensing education. Under 876 IAC and IC 25-34.1, which of the following correctly describes the pre-licensing education requirement for a Broker license candidate?

• A.The applicant must complete 40 hours of Commission-approved pre-licensing education before sitting for the state examination
• B.The applicant must complete 90 hours of Commission-approved pre-licensing education before sitting for the state examination
• C.The applicant must complete 150 hours of Commission-approved pre-licensing education before sitting for the state examination
• D.No pre-licensing education is required; the applicant need only pass the state examination administered by Pearson VUE