The flashcards below were created by user
on FreezingBlue Flashcards.
Indiana real estate license law is administered by the
Indiana Real Estate Commission
The members of the Indiana Real Estate Commission are selected by the
The Indiana Real Estate Commission has the authority to
adopt and enforce the rules by which all real estate licensees must abide.
In order to be appointed as an Indiana real estate commissioner, an individual must
have been licensed as an Indiana broker for five years.
The appointees of the Indiana Real Estate Commission consist of
one member from each congressional district in Indiana and two at large
Members of the Indiana Real Estate Commission are appointed for
4 year term
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.
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.
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.
In IN, who needs a real estate broker or salesperson license
A person negotiating an exchange of like properties
What activities require IN real estate license?
Anyone offering real estate for sale anywhere
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.
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.
A real estate license is required for
- *managing real estate
- *selling real estate
- *selling commercial real estate
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)
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.
In IN, applications for any real estate license must be
made within 365 days after passing the written exam.
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
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
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.
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.
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
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
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
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.
As evidence of current licensure, the IN Real Estate Commission requires a
A valid pocket card is the only acceptable evidence of current licensure.
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.
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.
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
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
Officers of RE Commission
- Chairman -
- 1 yr term.
- 2 consecutive terms limit
- Vice Chairman
- Acts as Secretary of Commission
- Non-voting member
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
Compensation of RE Commission members
- Salary & expenses $50/day on commission business
- About 4 or 5 days / month
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
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
Commission can recommend to the courts
- fine $1000 per violation
- order community service
- *** jail only in criminal cases
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
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
salesperson gets wall certificate; pocket card
- 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
Termination of association with broker
pocket card returned to commission within 5 days
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
- (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)
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)
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
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
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
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
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
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
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
Must report to Commission
all changes of name, business address or association with 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
Commission approves all courses, schools, school sites, instructors, renewals and directors
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.