STATE REAL ESTATE EXAM QUESTIONS

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STATE REAL ESTATE EXAM QUESTIONS

AND ANSWERS LATEST UPDATE

Question 1: An individual has been convicted of selling drugs and has served a

3-year sentence in prison. The individual has satisfied all the requirements for licensure and applies for a broker's license. The Indiana Real Estate Commission must

• Automatically deny the license due to seriousness of the crime
• Consider the offense to determine if it will have a direct bearing on the

individual's ability to practice competently

• Require that the individual submit documentation that rehabilitation has

occurred

• Issue a probationary license and have the individual report to executive

director the probationary period

Correct Answer: B. Consider the offense to determine if it will have a direct

bearing on the individual's ability to practice competently

Question 2: Which of the following would constitute "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 document with power of

attorney

• Failing to account for documents belonging to the client that have come into

the licensee's possession

Correct Answer: D. Failing to account for documents belonging to the client

that have come into the licensee's possession

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Question 3: T, a licensee from Illinois has been retained by the probate court to sell all real estate in J's estate. One of the properties is located in Indiana. T wants to sell the property located in Indiana. In this situation, which of the following statements is CORRECT?

• T must apply for an Indiana brokers license and fulfill any other

requirements

• T must receive permission from the Illinois Real Estate Commission
• T can apply to the Indiana Real Estate Commission for written permission to

sell the property

• The action is legal is T does not come to Indiana

Correct Answer: C. T can apply to the Indiana Real Estate Commission for

written permission to sell the property

Question 4: The attorney general must do may do which of the following?

• Place a broker on probation
• Subpoena documents for the investigation
• Order a broker to cease practicing
• Order a broker to amend advertising

Correct Answer: B. Subpoena documents for the investigation

Question 5: Which of the following is the proper way to split commission?

• The agreed amount discussed between the broker company
• Only the agreed amount to the selling broker company
• 35% of the total fee to the selling broker company
• 50% of the total fee to the selling selling company

Correct Answer: A. The agreed amount discussed between the broker company

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Question 6: Prior to placing a "For Sale" sign on the lawn, the licensee must have

• Oral consent of seller
• Open listing contract
• Written consent of seller
• Any form of listing contract

Correct Answer: C. Written consent of seller

Question 7: Licensee acting on behalf of an out of town seller receives an offer from buyer. What should the licensee do?

• Licensee has the managing broker authority
• Verbal approval of seller via phone
• Only if licensee has written authority as POA from seller
• As agent as principal

Correct Answer: C. Only if licensee has written authority as POA from seller

Question 8: T, a licensee from Illinois, has been retained by the probate court to sell all the real estate in J's estate. One of the properties located in INDIANA. If T wants to sell the property located in INDIANA. In this situation, which of the following statements is correct?

• T must apply for an Indiana broker's license and fulfill any other

requirements

• T must receive permission from the Illinois real estate commission
• T can apply to the Indiana real estate commission for written permission to

sell the property

• The action is legal if T does not come to Indiana

Correct Answer: B. T must receive permission from the Illinois real estate

commission

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Question 9: A consummation of transaction, listing broker is required to deliver closing statement to

• Seller
• Buyer
• Seller's Broker
• Buyer's broker

Correct Answer: A. Seller

Question 10: A person without a valid Real Estate license cannot list or sell for consideration unless that person

• Over 18
• Received license from Attorney General
• Falls under exemption from licensing in Indiana Real Estate law
• Held licensure in another state for 10 years

Correct Answer: C. Falls under exemption from licensing in Indiana Real Estate

law

Question 11: Inducements allowed

• Free home warranty w/o seller knowledge
• $100 gift card on FB for referral
• Donate to charity of buyer/seller's choice with approval
• Rebate portion of commission

Correct Answer: C. Donate to charity of buyer/seller's choice with approval

Question 12: May delay renewal of license if

• Broker owes MLS fees