Indiana Real Estate Laws

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Indiana Real Estate Laws
2013-11-11 18:07:04

Practice Indiana Real Estate Test
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  1. Indiana real estate license law is administered by the
    Indiana Real Estate Commission
  2. The members of the Indiana Real Estate Commission are selected by the
  3. The Indiana Real Estate Commission has the authority to
    adopt and enforce the rules by which all real estate licensees must abide.
  4. In order to be appointed as an Indiana real estate commissioner, an individual must
    have been licensed as an Indiana broker for five years.
  5. The appointees of the Indiana Real Estate Commission consist of
    one member from each congressional district in Indiana and two at large
  6. Members of the Indiana Real Estate Commission are appointed for
    4 year term
  7. All of the following statements regarding the Indiana Real Estate Commission are true
    • *commission can enforce the laws by which all licensees must abide.
    • *commission can contract with an independent testing company to administer the state licensing exam.
    • *an executive director provided by the licensing agency administers the operation of the commission's activities.
  8. The IN Real Estate Commission may undertake an investigation of a licensee based on all of the following grounds
    • *complaint from other real estate licensees.
    • *motion from the members of the commission.
    • * written complaint submitted by a disgruntled consumer.
  9. The IN Real Estate Commission my do all of the following
    The commission can investigate complaints, adopt a seal, issue, deny, suspend and revoke licenses.
  10. In IN, who needs a real estate broker or salesperson license
    A person negotiating an exchange of like properties
  11. What activities require IN real estate license?
    Anyone offering real estate for sale anywhere
  12. Under IN Law, any person who acts as a real property securities dealer must
    must have the proper credentials as security dealers under IN and federal law.
  13. Under IN real estate law, a partnership will be granted a license only if
    every employee actively participating in the brokerage business has a broker's license.
  14. A real estate license is required for
    • *managing real estate
    • *selling real estate
    • *selling commercial real estate
  15. If engaged in the sale of real estate who is exempt from IN real estate licensing requirement
    Public official performing acts authorized by law (sheriff sale)
  16. Office manager for local IN real estate firm is responsible for coordination the flow of paperwork through the office, preparing forms and advertising copy, and hiring and supervising clerical personnel.  The office manager is
    The office manager is performing non-real estate activities and is therefore exempt from real estate licensing requirements.
  17. In IN, applications for any real estate license must be
    made within 365 days after passing the written exam.
  18. In IN, requirements for obtaining a broker's license include
    • *successfully completed 54 hours of approved prelicense real estate courses
    • *at least 18 years old
    • *being good moral character
  19. Person successfully completed her IN prelicense real estate education requirement on Nov 1, 1000.  How long does this individual have to take the state exam before having to retake the prelicense course
    One year from date of completion
  20. Persons must have a real estate license in order to transact business
    person acting as a business broker who negotiates the sales of entire businesses, including their stock, equipment and buildings for a promised fee.
  21. 3 weeks before N begins his real estate prelicense class, he offers to sell his neighbor's house, offer accepted while N is still taking the class and closes the day N takes the exam.  Neighbor refuses to pay N.
    The agent can NOT sue because the injured party (agent) must have an active license at the time the agreement was reached.
  22. An applicant for a real estate salesperson's license in IN must
    not have been convicted of a crime indicating a propensity to endanger the public
  23. A person who is not an IN real estate licensee cannot list and sell real estate in IN unless that person
    qualifies for an exemption under current license law
  24. A person in IN has been offered the position of resident manager of an apartment complex.  In order to take this position, the person
    Must be a salaried employee of the owner to manage the complex without a brokers license
  25. To obtain a corporation license in IN, the corporation must
    have a licensed broker residing in IN who is an officer or employee of the corporation with authority to bind the corporation in real estate transactions.
  26. As evidence of current licensure, the IN Real Estate Commission requires a
    A valid pocket card is the only acceptable evidence of current licensure.
  27. The on-site property manager for Acme Apartments is responsible for negotiating leases for the apartment. A licensed IN broker supervises the manager, In this position, the on-site manager
    in this position the on-site property manager is exempt from the licensing requirements.
  28. An individual wants to sell her own house.  In order to do the legally, she
    is exempt.  Property owners who rent, sell, or buy property for themselves are exempt from licensing requirements.
  29. A valid IN real estate license is required in order to be compensated for
    Real estate license is required to write an option on land for a potential subdivision; leasing a commercial office building; selling a grain elevator
  30. Requirements to be Commission Member
    • Appointed by Governor
    • 4 yr term
    • 12 members
    • 10 are brokers with 5 yrs experience
    • 1 from each 9 Congressional District
    • 1 real estate member at large
    • 2 members at large with no real estate license
  31. Officers of RE Commission
    • Chairman -
    •    1 yr term.
    •    2 consecutive terms limit
    • Vice Chairman
  32. Executive Director
    • Acts as Secretary of Commission
    • Non-voting member
  33. Meetings of Real Estate Commission
    • Called by Chairman as needed
    • Or at the request of 7 members
    • 7 is quorum
    • majority needed to pass rules (few as 4 votes)
    • For quick action - may be oral (telephone) or written action of all members
  34. Compensation of RE Commission members
    • Salary & expenses $50/day on commission business
    • About 4 or 5 days / month
  35. Powers of Commission
    • enforce the RE statute by making rules & regulations
    • *all license are property of Commission
    • *controls real estate schools
    • *investigate & take action of complaints and violations
  36. Commission powers on license & schools
    • control by issuing, denying, suspending and revoking
    • max. length of suspension is 30 days
    • no limits on number of consecutive 30-day suspension
    • may inspect licensee records, conduct public hearings
    • No action automatic except where licensee will harm the public
  37. Commission can recommend to the courts
    • fine $1000 per violation
    • order community service
    • *** jail only in criminal cases
  38. Exception to receive payment for real estate transaction
    • attorney handling real estate while practicing law
    • public official (sheriff's sale)
    • Fiduciary (executor)
    • Hotels & motels renting room less than 30 days
    • Employed renting apts. for a licensed broker
    • rental of 12 or fewer apts
    • Interstate referral
    • owner selling their property
    • salaried employed by owner to sell or manage (subdivision builder)
    • licensed auctioneer
    • cemetery lots
    • Licensed in another state with permission of RE Commission
  39. Requirements for salesperson license
    • 18 years of age
    • No convictions (embezzlement & assult)
    • Taken and passed salesperson 54 hr class
    • Taken & passed state exam
    • paid license fee
    • associates with broker
    • associates with referral company (only receive referral fee) activation requires 16 hr. continuing education associate w/ broker
    • inactive license held be commission to reactivate 16 hrs. continuing ed assoc. w/ broker
  40. Issuing License
    salesperson gets wall certificate; pocket card
  41. Salesperson's obligations
    • Have only one principal broker
    • Maintain proof of license in office in "view of public"
    • Advertise in name of principal broker
    • Use only office provide by principal broker
  42. Termination of association with broker
    pocket card returned to commission within 5 days
  43. License renewal - salesperson
    • license expires on date specified on license
    • pay renewal fee
    • If expired
    •    * up to 18 mo. pay fee plus late penalty
    •    * over 18 mo. retake state test
  44. Inactive license
    • (must complete continuing education to reactivate license)
    • License held by Commission
    • Application & License fee paid to Commission
    • Associate with broker in 30 days
    • License held for 2 renewal periods(4 years)
  45. Requirements of Broker's license (now) 7/1/12
    • 18 yr of age
    • No conviction
    • 1 yr. experience as salesperson
    • taken & passed RE Broker's course (54 hrs)
    • Taken & passed state test for broker
    • paid license fee (if not paid within 1 yr have to retest)
  46. Requirements for Broker license after 7/1/14
    • HS diploma or GED
    • Take & pass RE Brokers course 90 hrs.
    • Associate with managing (Principal) broker for 2 yrs.
    • Take 30 hrs post-licensing educ for 2 years
    • License renew 3 yr period
  47. Requirements for Broker Transition (7/1/12 to 7/1/14)
    • Meet requirement for salesperson license
    • Take and Pass RE Broker transition course (24 hrs)
    • Take and Pass state test for Broker transition
    • Pay license fee
  48. Requirements for Broker Partnership
    • All partners must be licensed broker
    • One partner must be IN resident
    • Employees acting as salesperson or broker must be licensed
    • Submit a fee for partnership license
  49. Requirements for Limited Liability Company (LLC)
    • All members must be licensed Brokers
    • One member must be IN resident
    • Employees acting as salesperson or brokers must be licensed
    • Submit fee for LLC license
  50. Requirements for Limited Liability Company (LLC) manager-managed
    • Manager must be licensed broker
    • Manager must be IN resident
    • Employee acting as salesperson or brokers must be licensed
    • Submit a fee for LLC license
  51. Requirements - Corporations
    • Must be licensed broker who resides IN who is corporate officer or highest-raking employee with authority to make binding decisions
    • Employees active in RE business must be licensed
    • Submit license fee w/ cert. of incorporation in good standing w/ Secy of State
  52. License renewal - Broker
    • Expires on specified date on license
    • Pay renewal fee
    • If expired
    •    up to 18 mo. pay fee plus late penalty
    •    over 18 mo - retest
  53. Must report to Commission
    all changes of name, business address or association with Principal broker
  54. Principal Broker
    • Responsible for all RE actions of their associated licenses
    • Must advise the commission of the name & address of all branch managing brokers
    • Associated licensees are independent contractors
    • Trust accounts - created & kept by state law
    • Death of Principal Broker
    •    Salesperson max of 90 days to complete a transaction stated before the death
    • trust account must be established for any additional funds
    • Cannot enter into new business until associating with new broker
    • Assoc. broker can become own principal broker
  55. Educational Courses
    Commission approves all courses, schools, school sites, instructors, renewals and directors
  56. RE Recovery Act
    • Purpose: to protect aggrieved parties have received court judgement but licensee has no assets,
    • Fund of about $600,000 created by licensing fees from salespersons & brokers.  If fund exceeds $750,000 given to IN general fund.
    • $20000 per judgement; total $50000 be licensee.