Indiana Real Estate Commission Overview

Flashcards to help review the duties, regulations, and requirements associated with the Indiana Real Estate Commission and its various functions.

9 district commissioners, 2 citizen members at large, and 1 real estate member at large.

The Indiana Real Estate Commission consists of:

Have successfully completed a 90 hour broker course and passed a written state examination.

To obtain an Indiana broker's license, an individual must:

How many managing brokers can a broker be associated with?

1 Managing broker

May continue to carry out business contracted for before the death of the managing broker for a maximum of 90 days, but must associate with a new managing broker before entering into any new business (listings or sales.)

A broker

Must send a copy of the complaint or other information describing the crime to the Commission within 30 days after the date of the conviction.

A licensee who is convicted of a crime

$450,00

Regarding the Real Estate Recovery Fund, the Real Estate Commission will assess a surcharge on license applications or renewals if the amount of money in the fund, on June 30th of odd-numbered years, drops below how much money?

in-house agency relationship

An agency relationship involving two or more clients who are represented by different licensees within the same real estate firm is called an:

12 hours

To maintain an active status, a licensed broker must complete how many hours of continuing education each year?

Certified appraiser

A licensed broker in Indiana is allowed to perform appraisals for compensation without being a :

What regulation only applies to the following a sale of, an exchange of, an installment (land) contract for, or a lease with option to buy residential real estate that contains no more than four (4) residential dwelling unit ?

Residential Real Estate sales disclosure

Prepare real estate flyers that are reviewed and approved by their supervising licensee.

Brokers may NOT allow an unlicensed assistant to perform any act that would require a license, which of the following can such assistant perform?

The governor

Who appoints real estate commissioners?

36 hours

Real estate licensees are required to complete at least how many hours of continuing education in each license RENEWAL PERIOD?

Three years

A licensee has failed to renew their real estate license. How long after expiration does the licensee have to reinstate their license without having to re-take the state examination?

Immediately

How soon should written offers to purchase be communicated to the seller for acceptance or rejection upon receipt of the offer?

If a licensee is convicted of a felony, unrelated to their real estate practice as a result of the conviction what can occur?

The licensee may be subject to discipline by the Commission for incompetent practice if it is felt that the licensee shall not be trusted to serve the public

A buyer agent offers a $500 rebate to buyers who buy a home thru him. Which of the following is true?

The rebate is allowable, but must be disclosed to all parties to the transaction.

Which of the following people would be subject to Indiana license law?

A neighbor helping sell a property in exchange for use of a Florida timeshare.

Upon termination of a broker's license with a manager broker, the termination form must be returned to the licensing agency within how many days?

5 business days

Advertising which carries a licensee's name must also contain what other information?

The name of the managing broker or the firm name.

In a net listing scenario, Net listings must show a:

Maximum amount of commission.

Can the licensing agency inspect a managing brokers trust (escrow) accounts at any time?

Yes

If a broker is unable to collect a commission from their managing broker, what action can be taken?

File a lawsuit against the Broker

If you are a licensee selling your own home, you must do what?

I must inform prospective buyers, in writing, of my interest in the property.

2

After the final acceptance of an offer to purchase the listing broker should deposit any money received in connection with the transaction to one of the following (1) The listing brokers escrow account (2) to whoever is indicated in the purchase agreement to receive the monies. This should be done on or before the next ___ business days?

Who is authorized to hold the earnest money and is ultimately responsible for the earnest money, regardless of where they were deposited?

The managing broker

When a managing broker has monies in their escrow account that are supposed to be in their business account, and monies in their business account are supposed to be in their escrow account, this is referred to as:

Commingling

When a possible disciplinary action arises against a real estate licensee; the Real Estate Commission may summarily suspend a real estate license period for how many days?

90 days

After successfully passing the state licensing examination an applicant, has how long to send in their application information to the state?

One year

For how long are listing managing brokers and selling managing brokers responsible for retaining true copies of closing statements?

5 years

Guaranteeing, authorizing, or permitting any person to guarantee future profits then may result from the resell of real property is an example of what kind of practice?

Incompetent practice

The primary purpose of the Indiana Real Estate Commission is to?

Protect the public

An individual wishes to make a claim against a real estate recovery fund for money that was swindled by someone posing as a real estate broker, but in fact was unlicensed. What is the maximum amount this individual may expect to recover from the fund?

Nothing

An accepted offer is not enforceable against the buyer before closing until

The owner and the prospective buyer have signed the disclosure form.

A licensed real estate license has been revoked. When can they reapply for a license?

7 years

The amount of money that goes into the state's general fund from the recovery fund at the end of the state's fiscal year is the amount in excess of

$750,000

A special waiver when a broker is associated with a broker company, but there is an agreement between the broker and the broker company that the only activities the broker will undertake will be the referring of potential buyers and their sellers for the payment of referral fees.

Referral Status

The office of the managing broker

Evidence of associated licenses must be kept in:

What is the optimum amount to be maintained in the real estate recovery fund?

$600,000

2 business

Earnest money must be deposited with the agreed upon escrow within how many banking days?

How many members at large are in the Indiana Real Estate Commission?

3

Who issues licenses to a variety of industries, including real estate?

The Professional Licensing Agency (PLA)

How often is a chairman and vice chairman elected(can serve no more than 2 terms)?

Annually

A fee of not more than $20 levied on real estate brokers to establish a fund to investigate real estate and real estate appraisal fraud is called what type of fund?

Investigative Fund

Within how many years after being licensed must a broker successfully complete 30 hours of post licensing education?

2 years

Commercial

real estate shall be defined as any real estate other than 1-4 family residential properties.

When is a real estate license required ?

When selling real estate for others for consideration.

An individual who applies for a broker’s license after June 30, 2014 must take and pass:

at least 30 hours of post licensing education during the first 2 years after license is issued.

All partners must have individual brokers licenses
At least one partner must reside in Indiana and be a managing broker
Employee only licensed brokers to perform real estate activities
Submit the applicable fees for the partnership broker license.

Partnership License Requirements

are accounts of one ore more by each managing broker. They hold client funds separately from the broker's operating funds. May be interest bearing or non interest bearing. Managing brokers will not deposit business or personal funds in these accounts. Any interest if any is paid to beneficiary.

Trust Accounts

Who oversees the money in the Real Estate Recovery fund?

The treasurer of the state of Indiana

Within how long(after exhausting all remedies) must an aggrieved member of the public collect on a judgment from the Recovery fund?

1 year

The amount that may be paid from the Recovery Fund may not exceed

$20,000 per judgment

What is the aggregate lifetime limit with respect to any one licensee?

$50,000

An agency relationship may be created in one of two ways which are:

Written agreement or when the licensee is “working with” and representing an individual (this occurs when the individual is asking for advice or counsel of the licensee).

Limited Agency

occurs when a licensee is representing both the seller and the buyer in the same transaction in a informed, voluntary, written consent of the parties.

In-house agency relationship

When one licensee from a real estate agency represents a seller, and another licensee from the same agency represents the buyer in a real estate transaction.

In an in-house relationship who does the managing broker represent?

neither

Sub-agency

in which an agent appoints another agent to represent their client in a real estate transaction, is no longer legal in Indiana. A licensee may not make an offer of sub-agency.

What are deemed to be defects?

(1) significant adverse effect on the value of property (2) would significantly impair the health or safety of future occupants (3) that if not repaired, removed, or replaced would significantly shorten or adversely affect the normal life of the premise.

When should a disclosure form be given to a buyer?

Before an offer is accepted

Summary Suspension

The Commission may summarily suspend a license for 90 days before a final hearing or during the appeals process if they find that the licensee represents a clear and immediate danger to the public if they are allowed to continue to practice.

Listing and selling brokers must retain copies of closing statements for at least:

5 years

Managing broker

An Individual Broker whom the Commission holds responsible for the actions of licensees who are affiliated with the broker company. The managing broker may also be referred to as an individual broker.

Branch Manager

An individual broker who manages a branch office.

In electronic displays, if disclosing the name of the broker company is not practical, it is permissible as long as it is

linked to a display that includes the broker company's name

A broker company may participate in a referral service, or a franchise that provides a referral service as long as there is:

a written agreement with the client to be referred, and a written agreement with the cooperating broker as to the fees that will be paid.

All listing agreements shall show a definite date of expiration, shall be in writing, either on paper or electronic format, one copy going to the owner within how many business days of the time of signing?

3 Business Days

The broker holding any earnest money is not required to make payment to the buyer or seller when a real estate transaction is not consummated unless

The parties enter into a mutual release of the funds, or court issues an order for payment, except: upon being notified that (1) or more parties to a transaction intend not to perform, the broker holding the money may release the money as provided in the purchase agreement. If no provision is contained in the agreement, the broker may initiate the release process.

The listing and selling broker shall attend all closings, Except

Closings of commercial property , Closings were the brokers representing an institutional client such as financial institution, Closings where the party being represented by the broker or the party's authorized representative does not personally appear at the closing.

Any Broker who appraises real estate in Indiana must comply with the

Uniform Standards of Professional Appraisal Practice (USPAP)