Practice Testing: The Indiana Real Estate Commission Flashcards

Practice Testing: The Indiana Real Estate Commission Flashcards

An individual that is paid to provide services in a real estate transaction whether buying or selling must be licensedA.TrueB. False True - Any individual providing regulated services for consideration for the buying, and/or the selling of real estate in Indiana must be licensed.Seller Mary signs a listing agreement with broker Bill and his firm. Mary would be termed Bill's principal.A. TrueB.False True - Since Mary contracted with Bill to sell her house.Mary would be Bills principal and Bill is the agent.What type of agent do you think a broker is in the managing broker - agent relationship?A. UniversalB.SpecialC. GeneralD. Limited C - Agents are considered to be general agents to their managing brokers. An agent would be a special agent to their client.Al did not pass the Broker real estate exam that he took over a year ago. Before submitting his application, Al must retake and pass the exam, but he does not have to retake his Pre-licensing education.A. TrueB. False B - If an applicant does not pass within 1 year of completing the Pre licensure education that individual is required to retake Pre licensure education and retake and pass the exam before they can apply for a broker's license.In Indiana when Limited agency is created, the licensee is termed to represent whom?A. BuyerB. Buyer and SellerC.Neither buyer or sellerD. Seller B - When a broker represents both a buyer and seller on the same property this is called Limited agency.Choose the situation that does not have to remain confidentialA. Your seller client has a new job in a nearby cityB. Your buyer client is in the middle of a divorceC. Your sellers told you they put new carpet in the house you have listedD. Your seller clients parents live next door C - Your client has a new job, or in the middle of a divorce, or the fact that their parents live next door could be deemed as confidential information to your clients. Letting you know they put new carpet in the house would be a benefit to selling and not deemed as confidential Dual agency and Limited agency in Indiana are the sameA.TrueB. False Limited agency is most common in Indiana. Limited and Dual agency are the same.When an agency disclosure form is signed, this creates a binding agency relationship.A. TrueB. False False - There is no binding agreement formed with the signing of an agency disclosure form. However, there would be a binding agreement if someone were to sign a buyer broker agreement.Jane is an unlicensed assistant to Mary and helps Mary daily. What act is Jane NOT restricted from doing for Mary?A. Explain contracts and any relevant forms to a clientB. Give general information about listings limited to price, address, and directions to a propertyC. Discuss commission feesD. Be involved in Telemarketing B - An unlicensed assistant is restricted from the duties of a licensee in most cases. However giving general information such as the price of a property, directions, and the address are not violations of Indiana law.Sub-agency is a recognized agency relationship in IndianaA. TrueB. False False - The IREC ( Indiana Real Estate Commission) and the Legislature have worked together to eliminate this confusing type of agency and is now prohibited Linda provides broker price opinions (BPO's) and charges 150.00 each. Is Linda required to follow USPAP guidelines when providing BPO's?A. YesB. No A - All licensees are required to follow USPAP standards when providing a BPO.The Indiana Professional Licensing Agency completes

what function for the IREC except:A. Determines the status

of all Licensee applicationsB. Schedules and provides notice of All IREC meetings, hearings and investigationsC.Processes license applications, renewals, and collects all feesD. Maintains official records and files on all licenses and all Licensees A - The IREC determines the status of licensees, the Professional Licensing Agency provides administrative

services on behalf of the IREC.Indiana Real estate law provides that in a transaction the "selling agent" represents a buyer or tenant, and the" sellers agent" represents a seller or landlord.A. TrueB.False A - Two similar terms can designate two different roles by licensees to clients.Which action would be appropriate for an agent to do?A.Fill out a listing agreement form to list a propertyB. Drafting a DeedC. Give a client legal advice pertaining to the sale of real estateD. Draft a Land Contract for a buyer and a seller A - Drafting a Land Contract, Drafting a Deed, and Giving Clients Legal Advice are all the unauthorized practice of law. Filling in a pre-printed listing agreement is normal activity for an agent to perform.Attorney John is serving as executor of an estate that includes real estate in Indiana. Can John sell the property?A. TrueB. False A - Attorneys in the state of Indiana can practice incidental real estate from client to client if real estate is involved.What should you do if a seller refuses to sign an agency disclosure form?A. Let them know because they wouldn't sign the form they can expect less for their homeB. Let the seller know you will refer them to another agentC.Document the fact and date your documentationD. Refuse to take the listing C - You can't force anyone to sign anything. If anyone refuses to sign an agency disclosure form merely document that they refused to sign it and date your documentation.Steve learned while listing Betty's property her and her husband are in the middle of a divorce. What is Steve's fiduciary duty regarding this fact about his clients?A. Steve must keep this fact confidential for 2 years after learning about itB. Steve has no duty to keep this fact confidentialC.Steve must tell his prospective buyers this factD. Steve must keep this confidential even if he does not sell the house and their agency relationship has ended.D - Even if an agency relationship ends or their relationships ends, Steve must keep this information confidential forever. Confidentiality never ends unless asked to divulge in a court of law.What type of agent would have the greatest authority with dealing in Real Estate?A. UniversalB. GeneralC. SpecialD.All have the same A - A universal agent has the authority to do everything themselves that a principal could do. An agent is rarely deemed a universal agent.The Indiana Real Estate Commission consists of 12 members selected by a Congressional Representative relative to their DistrictA. TrueB. False False - IREC members are appointed by the Governor for 4 year terms.A majority vote of a quorum (the minimum required to conduct official business) present at a meeting, could result in official and binding votes by the IRECA. TrueB. False True - The majority vote of a quorum results in binding decisions.An agent receives a low offer on a listing she has. The agent is not required to present it to her sellers because it is lowA. TrueB. False False - Per Indiana law all offers must be presented whether verbal or written.Effective July 1 2014, a Commercial broker not residing in Indiana can carry out the functions of an Indiana Broker without being licensed in Indiana as long as he or she can

show good standing in their home state and they must properly affiliate themselves with an Indiana Broker.A.TrueB. False True - A condition for an out of state commercial broker to do business in Indiana without an Indiana license is to provide evidence of good standing in their home state.