Indiana · Real estate exam prep
Practice Indiana real estate questions free below. RealReady has 1,045 questions in the bank covering both national real estate principles and Indiana state law. Pay $17.99 once and own it forever. No subscription like the other prep services.
The Indiana real estate broker exam is one of the toughest in the country. The Indiana Real Estate Commission contracts with Pearson VUE to administer it as a split test, 80 scored national questions and 50 scored state-specific questions, with a four-hour seat time. Indiana uses the word "broker" for what most other states call a salesperson license, so the entry-level exam covers full broker scope from day one. You have to pass each portion on a scaled score of 75 to qualify for a license.
State-specific prep matters more here than almost anywhere else. Indiana's required written agency disclosure, the seller's residential real estate sales disclosure form, the Consumer Restitution (Recovery) Fund, trust-account and earnest-money rules, psychologically affected properties statute, and the Indiana Real Estate Commission's enforcement powers under IC 25-34.1 and 876 IAC all show up on the exam. None of that looks like the material a candidate in a neighboring state studies. A generic real estate practice test won't cut it. You need Indiana-specific practice questions.
Below are 20 free Indiana real estate test questions and answers from RealReady's full Indiana bank. Each tests a specific topic with the correct answer and a plain-English explanation under the card. Read each one, commit to an answer, then reveal. Treat it like a real IREC practice test, and the ones you miss show you what to focus on next.
Get the RealReady app on iPhone, iPad, or Android for the rest of the Indiana question bank. The full app includes short articles that walk you through the why behind each topic, detailed explanations on every question, a missed-question drill mode, and progress tracking that shows your per-category accuracy.
Practice
Use this like a free Indiana real estate practice test: read the question, commit to an answer, then tap to reveal the correct answer and a plain-English explanation. The ones you miss tell you where to focus next.
Correct: B Professional Licensing Agency (PLA)
IREC is a division of Indiana's Professional Licensing Agency (PLA), which oversees multiple licensed professions. The PLA provides administrative support, while IREC retains authority over real estate licensing policy and discipline.
Correct: A Any person with knowledge of a potential violation
Indiana law allows any person — not just transaction parties — to file a complaint with IREC. This broad standing ensures the public can report violations they observe, even if not directly harmed.
Correct: A Negotiating a lease on behalf of another for compensation
Negotiating leases for others for compensation is a licensed activity in Indiana. Owners selling their own property and people managing property they own are exempt. Referring someone without receiving compensation does not trigger licensing requirements.
Correct: A Unassigned status
An Indiana broker who holds an active license but is not affiliated with a managing broker is in unassigned status. Inactive status means the broker has affirmatively chosen not to practice. Referral status is a separate category allowing limited referral activity. Unassigned and inactive are distinct classifications.
Correct: B Loyalty
Loyalty is the core fiduciary duty requiring a broker to place the client's interests above their own and all others. Disclosure, fairness, and accountability are duties owed to all parties, not exclusive fiduciary obligations to the client.
Correct: C The type of agency relationship being offered
Indiana's agency disclosure form must identify the type of agency relationship being offered to the consumer — seller agency, buyer agency, landlord or tenant agency, or limited agency representing both sides with written consent under IC 25-34.1-10-12. Commission rates, sales history, and insurance information are not required elements of the agency disclosure form.
Correct: A Performing services with reasonable skill and care
Indiana's professional standard of competence requires brokers to perform services with the reasonable skill and care expected of a licensed professional. This does not require specialist designations on every transaction or attorney involvement in each deal. Brokers cannot guarantee outcomes but must exercise sound professional judgment.
Correct: C Disclose the infestation to prospective buyers despite the seller's instruction
Indiana brokers have an affirmative duty to disclose known material facts that affect value or desirability, regardless of seller instructions. An active termite infestation is a material fact that must be disclosed to buyers. A seller cannot instruct a broker to withhold material defects. While withdrawal is an option, the better answer is disclosure.
Correct: D The brokerage firm's name
Indiana requires the brokerage firm's name to appear on all real estate advertisements. An individual broker's personal name, license number, or the firm's IPLA number are not independently required. Ads that omit the firm name are considered blind ads and are prohibited.
Correct: D Written agreement signed by both parties
Indiana requires all listing agreements to be in writing and signed by both the seller and the broker to be enforceable. An oral listing agreement or one lacking the broker's signature does not satisfy the statutory requirement.
Correct: B Present the offer promptly, regardless of timing or inconvenience
Indiana requires all offers to be presented promptly to the seller. A broker cannot delay presentation based on the seller's travel schedule, the offer price, or a hope that a better offer will arrive. Withholding or delaying an offer is a violation of the broker's fiduciary duty.
Correct: C Good faith disclosure of all known material defects
Indiana's Seller Disclosure Act (IC 32-21-5) requires sellers to disclose known material defects in good faith. Sellers are not required to investigate for unknown defects or guarantee the property's condition — only to honestly disclose what they actually know.
Correct: D A minimum of five years
Indiana requires brokers to retain transaction records — including listing agreements, purchase agreements, closing documents, trust account records, and correspondence — for a minimum of five years. The three-year period is incorrect; that standard applies in some other states.
Correct: A Yes, attorney attendance at closing is optional in Indiana
Indiana is an attorney-optional state for real estate closings. Title companies typically conduct closings without attorney involvement, which is legally valid. Buyers and sellers may choose to hire attorneys, but it is not required by Indiana law.
Correct: C Appointed by the Governor
IREC members are appointed by the Governor of Indiana, consistent with the structure of most Indiana professional licensing boards. This gubernatorial appointment process ensures public accountability for the commission's oversight role.
Correct: D Administrative Law Judge (ALJ)
Indiana disciplinary hearings are conducted by Administrative Law Judges (ALJs), who are neutral hearing officers. The ALJ issues a recommended order, which IREC may adopt, modify, or reject. This separates the prosecutorial and adjudicative functions.
Correct: B No, licensed auctioneers conducting public auctions are exempt under IC 25-34.1-3-2
Indiana's licensing statute (IC 25-34.1-3-2) explicitly exempts licensed auctioneers conducting sales at public auction under IC 25-6.1. This is one of several statutory exemptions from the real estate licensing requirement, alongside exemptions for attorneys, government employees, and court-appointed fiduciaries.
Correct: B No, referral status limits activity to referring clients to active brokers
Referral status restricts the broker to making referrals only — showing property and writing contracts are full brokerage activities that require active affiliated status. The broker would need to change to active affiliated status before engaging in these activities. The restriction applies regardless of whether compensation is involved.
Correct: B Loyalty — acting in the buyer's best financial interest
Aggressively negotiating to save the buyer money is the duty of loyalty — placing the client's interests paramount. While obedience is also a fiduciary duty, it applies to following lawful instructions, not proactive advocacy. Confidentiality and disclosure are separate duties.
Correct: B Before the discussion about budget and financing begins
Indiana requires agency disclosure before substantive discussions about a specific property — including the buyer's financial situation, which directly relates to the transaction. Waiting until the showing or the offer is too late. The disclosure must occur before the conversation moves beyond general inquiry.
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FAQ
The Indiana Real Estate Broker Examination has 145 total items, with 80 scored questions on the national portion and 50 scored questions on the state-specific portion. The exam also includes 5–10 unscored pretest items per portion that look identical to scored questions, so you should answer everything.
Indiana uses a scaled score of 75 on each portion, set by the Indiana Professional Licensing Agency together with Pearson VUE. The scaled score isn't the same as a raw percentage. You must pass both the national and state portions individually. If you pass one and fail the other, you only need to retake the failed part.
The Pearson VUE examination fee is $55 per attempt, paid by credit card, debit card, or voucher at the time you reserve your seat. The fee is non-refundable and non-transferable. After you pass, the broker license application fee paid to the Indiana Professional Licensing Agency is $60, and the license renews every three years for another $60.
Total seat time is 240 minutes (four hours), which covers both the national and state portions plus the tutorial and a short candidate survey. Pearson VUE administers the exam in person at testing centers across the state.
Yes, more than most candidates expect. Indiana is one of a smaller group of states where the entry-level license is the broker license, and the exam tests full broker scope (agency relationships, trust accounts, brokerage agreements, supervision of unlicensed assistants) instead of just salesperson basics. The state portion is dense with statute and rule, and a single missed concept on something like the written agency disclosure or the seller's disclosure form can pull your scaled score below 75. Honest practice on Indiana-specific questions, not generic national content, is what gets people across the line on the first try.
The 80-question national portion covers property ownership and land use, forms of ownership and transfer of title, property value and appraisal, real estate contracts and agency, practice of real estate and fair housing, property conditions and financing, and settlement. The 50-question state portion covers five areas: the Indiana Real Estate Commission's general powers and disciplinary authority (5 items); licensing categories and maintenance (9 items); statutory and regulatory requirements like advertising, commissions, brokerage agreements, earnest money, the seller's residential real estate sales disclosure, and psychologically affected properties (12 items); statutes and rules governing agency relationships and licensee conduct (17 items); and real estate office procedures including trust accounts, branch offices, and the managing broker relationship (7 items).
After finishing your 90-hour broker pre-licensing course, the highest-leverage thing you can do is grind through Indiana-specific practice questions with honest feedback on every miss. Generic real estate practice tests will help with the national portion but won't catch you on Indiana's unique rules like the written agency disclosure timing, the Consumer Restitution Fund cap, or the managing-broker supervision requirements. The RealReady app gives you the full bank of Indiana questions, plus progress tracking and a missed-question mode so you can drill what you're weak on. Most users study 30–60 minutes a day for 2–4 weeks before sitting the exam.
