Free Indiana Real Estate Practice Exam

Q1.Which of the following BEST describes a dual agency relationship?

• A.One broker represents two sellers simultaneously
• B.One broker represents both the buyer and the seller in the same transaction
• C.Two brokers each represent the same buyer
• D.A salesperson who works for two different brokers at the same time

Q2.Under IC 25-34.1-10, which of the following duties does an Indiana broker owe to a CUSTOMER (non-client) but NOT to a CLIENT?

• A.Disclosing all material adverse facts known about the property
• B.Promoting the customer's best interests in every negotiation
• C.Maintaining confidentiality of the customer's motivation and financial position
• D.Accounting for all money and property received on the customer's behalf

Q3.After a real estate transaction closes, an Indiana managing broker is determining how long to retain transaction records, including contracts, disclosures, and trust account records. Under 876 IAC 2-13, what is the minimum record retention period required?

• A.Two years from the date of closing.
• B.Three years from the date of closing.
• C.Five years from the date of closing.
• D.Seven years from the date of closing.

Q4.Under federal fair housing laws, which of the following fiduciary duties could potentially conflict with an agent's obligation to avoid discriminatory practices?

• A.Confidentiality of client information
• B.Loyalty to the client's interests
• C.Reasonable care and skill
• D.Accounting for funds received

Q5.Under Indiana law, which of the following actions by a licensed broker would constitute grounds for disciplinary action by the Indiana Real Estate Commission?

• A.Representing both the buyer and seller in a transaction after obtaining written consent from both parties
• B.Accepting a referral fee from an out-of-state broker who is not licensed in Indiana
• C.Placing a buyer's earnest money into the broker's personal checking account rather than a trust account
• D.Advertising a listed property without including the listing price in the advertisement

Q6.Indiana's Residential Real Estate Sales Disclosure Act requires a seller of residential real property to provide the buyer with a completed Sales Disclosure Form. When must the seller deliver this disclosure to the prospective buyer?

• A.At the time the seller accepts the buyer's purchase offer and the contract is signed.
• B.No later than the date of closing.
• C.Before the buyer makes an offer to purchase the property.
• D.Within three business days after the purchase agreement is executed.

Q7.An appraiser is estimating the value of an older commercial building using the cost approach. The building has a reproduction cost new of $1,200,000, an effective age of 20 years, and an economic life of 50 years. The site has $95,000 of curable functional obsolescence and the property suffers $40,000 of external obsolescence. What is the indicated value if the land is valued at $180,000?

• A.$677,000
• B.$737,000
• C.$617,000
• D.$857,000

Q8.Under 876 IAC 4-1-9, which statement about real estate license pocket cards is correct?

• A.Pocket cards are optional and not required to be carried
• B.Pocket cards must be carried only when showing property
• C.Pocket cards must be in the licensee's possession when engaging in real estate activities
• D.Pocket cards are only required for brokers, not salespersons

Q9.An Indiana broker-in-charge receives earnest money from a buyer on Monday. Under 876 IAC 2-13-1 and Commission guidance, by what point must the funds be deposited into an escrow or trust account?

• A.Within 24 hours of receipt, regardless of banking hours.
• B.By the end of the next banking day following receipt of the funds.
• C.Within three banking days of receipt of the funds.
• D.At or before the closing date specified in the purchase agreement.

Q10.A brokerage's leasing agent conditions a showing on a sexual favor, without the broker's knowledge. Under the FHA, which statement is correct?

• A.The brokerage has no liability because the broker did not know
• B.Only the agent is personally liable
• C.The brokerage may face vicarious liability because the agent acted within the scope of employment
• D.The brokerage is only liable if the conduct was part of a pattern

Q11.A seller breaches a purchase contract by refusing to convey the property after all contingencies have been satisfied. Under contract law principles, which remedy would most likely provide the buyer with the actual property they contracted to purchase?

• A.Specific performance requiring the seller to complete the sale as agreed
• B.Monetary damages equal to the difference between contract price and current market value
• C.Rescission of the contract with return of earnest money
• D.Liquidated damages as specified in the purchase agreement

Q12.Under the Supreme Court's 2020 Bostock v. Clayton County decision as applied to housing, federal sex protections extend to:

• A.Sexual orientation and gender identity
• B.Only biological sex, not sexual orientation or gender identity
• C.Only gender identity, not sexual orientation
• D.Only state law covers LGBTQ+ housing discrimination

Q13.Under Indiana's agency disclosure rules governed by the Indiana Real Estate Commission (IREC), when must a licensee first present the 'Consent for Dual Agency' disclosure form to a consumer?

• A.At the time an offer to purchase is submitted
• B.Before a dual-agency situation arises, when it becomes apparent that both parties may be represented by the same broker
• C.At or before closing
• D.Only after the consumer has signed a buyer representation agreement

Q14.At or before a residential tenancy begins, which management information must be disclosed in writing?

• A.The identity and address of the person authorized to manage and of an owner or authorized agent for service and notices
• B.Every vendor's tax return
• C.The prior tenant's forwarding address
• D.The owner's mortgage balance

Q15.Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), which party could be held liable for environmental cleanup costs at a contaminated property?

• A.Only the party that originally caused the contamination
• B.Only parties who were aware of the contamination at the time of purchase
• C.Only commercial property owners, not residential owners
• D.The current property owner, even if they did not cause the contamination