Chapter 25 - Indiana Regulatory Enivorment

Question 1

Commercial Real Estate:

Answer 1

Any parcel of real estate other than a parcel containing one to four residential units.

Thus, commercial real estate does not include single family residential units such as condominiums, townhomes, manufactured homes, or homes in a subdivision when sold, leased, or otherwise conveyed on a unit-by-unit basis regardless of the size of building or parcel of which the unit is a part.

Question 2

Broker:

Answer 2

licensed person who sells, buys, trades, exchanges, options, leases, rents, manages, lists, appraises real estate or negotiates or offers to perform any of those acts for consideration, and who is acting in association with and under the auspices of a managing broker.

Question 3

Licensee:

Answer 3

A person who holds a license issued under Title 876.

Question 4

Practitioner:

Answer 4

A person who holds a license, certificate, registration, or permit that has been issued by a regulatory board and that is unlimited, limited or probationary, temporary, or an intern permit.

Question 5

Client:

Answer 5

Any person who has entered into an agency relationship with a licensed broker.

Question 6

Customer:

Answer 6

A person who is not a client but who is being provided services by a licensed broker.

Question 7

Professional Service:

Answer 7

Any type of service that may be legally performed by a real estate professional or other designated professional, such as an attorney.

Question 8

Suspension:

Answer 8

A sanction imposed for real estate law or professional standard violations. This sanction prohibits the licensee from practicing real estate until the suspension has been lifted.

Question 9

Revocation:

Answer 9

The harshest form of discipline for real estate law or professional standard violations and forbids the violator from practicing real estate. The practitioner’s license is permanently revoked, but the individual may apply for a new license 7 years after revocation.

Question 10

Title 876:

Answer 10

In Indiana, the law that governs the practice of real estate is Title 876 of the Indiana Administrative Code.

The overall purpose of Indiana’s Title 876 is to protect the public from irresponsible or unscrupulous persons dealing in real estate.

Title 876 created the Indiana Real Estate Commission.

Question 11

Prohibited Act:

Answer 11

Not available

Question 12

Cease and Desist Order:

Answer 12

If an unlicensed person performs acts that require a license, the Attorney General will investigate and potentially file a motion for a cease and desist order. A cease and desist order is enforceable in either circuit or superior courts.

Question 13

Investigative Fund:

Answer 13

Indiana code created the investigative fund to provide funds for administering and enforcing the provisions of regulatory real estate laws. It also funds investigating and taking action against real estate and appraisal fraud. The Fund is administered by the attorney general and the professional licensing agency.

Question 14

Recovery Fund:

Answer 14

The Recovery Fund was established to cover claims against licensees for damages from acts of embezzlement or unlawfully obtaining money or property.

Question 15

Lifetime Limit:

Answer 15

The amount covered by the Recovery Fund that cannot be exceeded for any one licensee. There is a $50,000 aggregate lifetime limit