Part 3 Flashcards Indiana Real Estate Commission Flashcards

Vocabulary and regulatory requirements based on the Indiana Administrative Code Title 876 for real estate licensure and practice.

Purpose of the Commission

To safeguard the public interest.

Broker Company Management

Every broker company shall be directed, supervised, and managed by a broker who is primarily responsible for the company's actions.

IREC Reassignment Notification

When changing companies, the Broker must notify the IREC within $5$ business days by filing a reassignment application.

Indiana Licensure Restriction

Licensees may only work for one INDIANA broker company at any given time.

Listing Termination Rule

If a licensee terminates affiliation, they SHALL turn all listings over to the Managing Broker unless a written contract provides otherwise.

Commission Payments

Payments must be made directly to the SELLING Managing Broker and never to the licensee.

Listing Contract Requirements

All contracts must be written or electronic, show a definite date of expiration, be in duplicate, and a copy must be given to the Seller within $3$ business days.

Net Listings

Listings that must provide for a maximum commission to be paid by the seller to the Managing Broker.

Earnest Money Deposit Deadline

The listing broker or escrow agent shall deposit all money on or before the next $2$ banking days after final acceptance of the offer.

Affordable Housing Fund (Escrow Interest)

Interest earned on a broker's escrow/trust account may be transferred to a fund meeting Internal Revenue Code $501(c)(3)$ requirements if the beneficiary agrees in writing.

Earnest Money Release Process

A broker may release funds after notifying all parties via certified mail; parties have $60$ days to initiate litigation or enter a mutual release.

Closing Statement Retention

Managing Brokers must keep copies of closing statements for a period of $5$ years.

Commercial Property (Closing Attendance)

Defined as any property other than one ($1$) to four ($4$) family residential; brokers are not required to attend these closings.

Advertising Standards

All written, oral, and internet advertising must be in the name of the Managing Broker with the name CLEARLY VISABLE.

Dual Capacity

An incompetent practice involving acting as both a broker and an undisclosed client in any transaction.

Unlicensed Assistant Exceptions

Assistants may not answer listing questions EXCEPT for List Price, Address, How to Get There, and Property Features.

Hour of Instruction

A measurement where a $50$ minute instruction period equals one ($1$) hour.

Annual Broker Continuing Education

Every licensed broker must complete at least $12$ hours per continuing education year.

Managing Broker CE Subjects

At least $4$ hours of the required $12$ hours must be dedicated to business and management skills and legal knowledge.

Expired License Reinstatement

Requires the broker to have obtained $36$ hours of continuing education within the $3$ years prior to application for reinstatement.

HOA Disclosure Deadline

The seller must provide specific homeowners association documents to a purchaser not later than $10$ days before the sale closes.

HOA Unpaid Assessment Statement Fee

A homeowners association or agent may charge not more than $\$250$ for providing a statement of unpaid assessments.