Free Indiana Real Estate Practice Exam

Q1.Under Indiana Code IC 25-34.1-11-5, a broker who has been convicted of a felony involving fraud must report this to the Commission within what timeframe?

• A.Immediately upon conviction
• B.Within 30 days of conviction
• C.Within 60 days of conviction
• D.At the next license renewal

Q2.Under the Real Estate Settlement Procedures Act (RESPA), a lender must provide the Loan Estimate to a borrower within how many business days of receiving a complete loan application?

• A.3 business days
• B.5 business days
• C.7 business days
• D.10 business days

Q3.Under Indiana Code, when a broker changes their designated managing broker, they must notify the Real Estate Commission:

• A.Before the change becomes effective
• B.Within 10 days after the change
• C.Within 30 days after the change
• D.At the next license renewal

Q4.Under Indiana fair housing law, which statement about advertising is correct?

• A.Advertisements may indicate preferences based on marital status if clearly disclosed
• B.Advertisements cannot contain any words that might indicate discrimination against protected classes
• C.Religious organizations are exempt from all advertising restrictions
• D.Age preferences may be stated in advertisements for senior housing

Q5.In Indiana, what happens to earnest money when a purchase agreement is canceled due to the buyer's failure to satisfy a financing contingency within the specified time period?

• A.The earnest money is forfeited to the seller
• B.The earnest money is returned to the buyer
• C.The earnest money is split equally between buyer and seller
• D.The earnest money is held until litigation resolves the dispute

Q6.An agent earns a 3% commission on a $400,000 sale and splits it 60/40 with the broker. How much does the agent receive?

• A.$4,800
• B.$7,200
• C.$9,600
• D.$12,000

Q7.Under the Fair Housing Act, which of the following actions by a real estate broker would constitute illegal steering?

• A.Showing properties in multiple neighborhoods to all clients regardless of race
• B.Directing minority clients only to integrated neighborhoods while showing white clients properties throughout the city
• C.Providing market statistics for all neighborhoods when requested by clients
• D.Explaining school district boundaries to clients with children

Q8.Under Indiana Code, what is the maximum duration for a lease that can be created orally?

• A.6 months
• B.1 year
• C.2 years
• D.3 years

Q9.A tenant in Indiana wants to terminate their lease early due to military deployment. Under what circumstances may they do so without penalty?

• A.Never; military deployment does not excuse lease obligations in Indiana
• B.Only if the lease specifically includes a military clause
• C.Under the federal Servicemembers Civil Relief Act with proper notice
• D.Only if the deployment is longer than one year

Q10.Under federal environmental regulations, which of the following factors would most likely cause a significant decrease in property value during an appraisal?

• A.Proximity to a wetland area
• B.Discovery of asbestos-containing materials in the building
• C.Location within a flood zone
• D.Presence of lead-based paint

Q11.Under the Equal Credit Opportunity Act (ECOA), which of the following actions by a lender would be prohibited?

• A.Requiring verification of income from all applicants
• B.Asking about an applicant's marital status when applying for an individual unsecured loan
• C.Requesting proof of employment history
• D.Requiring a down payment for the loan

Q12.ABC Realty has a listing agreement with a seller. A different agent from ABC Realty shows the property to a buyer who wants to make an offer. Under Indiana law, what type of agency relationship exists?

• A.Single agency with the seller only
• B.Designated agency
• C.Dual agency
• D.No agency relationship with the buyer

Q13.Which type of depreciation is considered incurable in real estate appraisal?

• A.Physical deterioration from deferred maintenance
• B.Functional obsolescence due to outdated kitchen
• C.Economic obsolescence from airport noise
• D.Wear and tear on carpeting

Q14.How many hours of continuing education are required for Indiana broker license renewal?

• A.12 hours
• B.15 hours
• C.20 hours
• D.30 hours

Q15.According to Indiana law, which statement about earnest money deposits is correct?

• A.Earnest money must always be deposited within 24 hours
• B.Earnest money can be held by the salesperson in their personal account
• C.Earnest money must be deposited in the broker's trust account or with an agreed-upon third party
• D.Earnest money deposits are optional in all transactions