100 QUESTIONS AND CORRECT ANSWERS -

INDIANA Real Estate State Portion ACTUAL Exam

100 QUESTIONS AND CORRECT ANSWERS -

In conducting a real estate proposal, a reconcilliation process will be necessary because

• different approaches to value will yield different estimated values for the same property
• it is the only means of reaching a reasonable estimate of market value
• the appraiser's estimate of market value needs to be reconciled with the assessed value listed on

the tax rolls

• the appraisal cannot be considered reliable without it

A

All advertising submitted by a broker must be within the direct supervisory control of the

• Indiana Real Estate commission
• property owner
• Indiana Association of REALTORS
• Managing Broker

D

a broker resides in the state of Michigan and is licensed as a real estate broker in Indiana. in this

situation, the broker may:

A act as a broker associated with a Managing Broker in Indiana

• be associated with two different Managing Brokers in Indiana
• manage the broker's own real estate company in Indiana
• only list property in Michigan

A

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A broker advertises an open house with a drawing for a free TV. The broker must give full disclosure regarding this inducement to

• the seller only
• potential buyers only
• all parties in the transaction
• the Indiana Gaming Commission

C

broker Z is affiliated with xyz brokerage company but works remotely from home, broker z:

• must have xyz brokerage company's sign on his house
• may not work remotely from home
• may not advertise that his home address is his principal place of business
• must obtain separate Errors and Omissions (E&O) Insurance

A

A limited agent may disclose which of the following facts?

• the septic system is inadequate to service the property
• the sellers of the property are filing for divorce
• the buyer will pay list price for the property
• the seller has rejected higher offers

A

Which of the following would constitute an "incompetent practice" by a licensee?

• failing to advertise listings
• paying a disclosed referral fee to a party to the transaction
• acting as the agent for the seller and signing documents with the power of attorney
• failing to account for documents belonging to the client that have come into the licensee's

possession 2 / 3

D

A broker company must provide to the real estate commission upon request

• a list of all employees
• financial records of their business account
• a detailed summary of their escrow account
• continuing education certificates from all associated brokers

D

A broker has a listing agreement to deliver to his out-of-town client. To properly secure this listing, the agreement

• must have original ink signatures
• must be retained in the broker's files for three years
• may be in electronic format
• may be in oral agreement

C

A broker builds a website for a new listing that does not mention the Broker Company name. It does have a link to the Managing Broker's website. Under Indiana Real Estate License Law

• all advertising must contain the name of the firm with whom the licensee is associated in letters

smaller than the Broker's name

• the Broker's name does not need to be on the listing as long as the broker has written permission

from the Managing Broker

• websites are exempt from advertising requirements
• websites must contain the Broker Company name

D

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