Chapter 26 - Acquiring an Indiana Real Estate License Flashcards
Real Estate Practice:
Indiana law requires anyone engaging in the practice of real estate for compensation to be licensed. Engaging in the practice of real estate includes the following:
selling, buying, trading, exchanging, optioning, leasing, or managing real estate, or offering to do any of these activities
listing or offering to list real estate for sale, lease, exchange, etc.
telemarketing or canvassing to seek listings
preparing advertising or promotional materials without approval of supervising broker
showing real property or conducting open houses
answering questions about listings other than those about list price, address, features, or geographic directions
discussing a contract or other real estate document with anyone other than broker company employees
appraising real estate
negotiating to perform any of the above activities in Indiana or in regard to real estate located in Indiana
negotiating or agreeing to any commission, commission split, management fee, or referral fee
Exemption:
An Indiana real estate license is not required for the following:
an attorney practicing law
a public official performing authorized legal acts
a receiver, executor, administrator, commissioner, trustee, or guardian handling real estate in accordance with a court order or a will
rentals of rooms, lodging, or other accommodations for 30 days or less by a commercial hotel or establishment
rentals of residential apartments by someone employed or supervised by a licensed broker
rentals of apartments where not more than 12 units are located on a single piece of real estate or on contiguous pieces of real estate
an out-of-state licensed broker referring real estate business to an Indiana licensed broker
a property owner handling his or her own property
a property owner’s salaried employee performing real estate acts related to the owner’s property
a licensed auctioneer conducting a sale at public auction
the sale, lease, or other transfer of interests in cemetery lots
an out-of-state licensed broker performing acts with written permission and restrictions from the Commission
an out-of-state licensed commercial broker performing real estate activities for consideration in Indiana who contracts with a broker licensed in Indiana, gives that broker proof of out-of-state licensure, works in cooperation with the Indiana broker, and follows other requirements outlined in Indiana real estate law.
Waiver:
An Indiana real estate license is not required for the following:
an attorney practicing law
a public official performing authorized legal acts
a receiver, executor, administrator, commissioner, trustee, or guardian handling real estate in accordance with a court order or a will
rentals of rooms, lodging, or other accommodations for 30 days or less by a commercial hotel or establishment
rentals of residential apartments by someone employed or supervised by a licensed broker
rentals of apartments where not more than 12 units are located on a single piece of real estate or on contiguous pieces of real estate
an out-of-state licensed broker referring real estate business to an Indiana licensed broker
a property owner handling his or her own property
a property owner’s salaried employee performing real estate acts related to the owner’s property
a licensed auctioneer conducting a sale at public auction
the sale, lease, or other transfer of interests in cemetery lots
an out-of-state licensed broker performing acts with written permission and restrictions from the Commission
an out-of-state licensed commercial broker performing real estate activities for consideration in Indiana who contracts with a broker licensed in Indiana, gives that broker proof of out-of-state licensure, works in cooperation with the Indiana broker, and follows other requirements outlined in Indiana real estate law.
Broker:
An applicant for a broker license must have completed at least 90 hours of Commission-approved coursework from a state-approved school or provider. The school and its instructors must meet several requirements and comply with all applicable laws. The coursework may be taken in a classroom environment or online if available from an approved provider.
The 90 hours of coursework must include real estate basics and law with required courses outlined within the law. Students are required to attend at least 80% of the required hours to complete the course. The course must also include three examinations consisting of 100 questions each. The examination scores are the basis for passing or failing the course.
Managing Broker:
A managing broker has additional education requirements which include completing 24 hours of broker management courses in the brokerage business, brokerage operations, and the managing broker’s role. The 24 hours may be taken as one course or as three separate 8-hour courses.
Expiration:
When a broker is first issued his or her license, the Professional Licensing Agency determines the date for the initial expiration of the license. Licenses are issued for a term of 3 years. Unless the license is renewed, future expirations will occur every 3 years on the same date.
The licensing agency is required to send a 60-day license expiration notice to all licensees. If the agency fails to send the notice on time, the licensee will be allowed 45 days to renew the license once an expiration notice actually has been received. The licensee will not be sanctioned for initially failing to renew the license if he or she does so within the 45 days.
Partnership:
If a partnership is to obtain a broker license,
only licensed brokers may be partners
one partner must be a licensed managing broker who is a resident of Indiana
employees must be licensed as brokers to conduct real estate activities
an application and fee must be submitted with all required information about the partnership
Corporation:
If a corporation is to obtain a broker license, the corporation must have a licensed broker who is an officer resident in Indiana. If no officer resides in Indiana, the licensed broker must be the highest ranking employee resident in Indiana who has the authority to bind the corporation in real estate transactions, or a managing broker.
Employees must be licensed as brokers to conduct real estate activities. In addition, the corporation must submit the following:
the license fee and application with all required information about the corporation
a copy of the certificate of incorporation
a certificate of good standing issued by the Secretary of State
Liability Company:
LLCs can be either member-managed or manager-managed.
If a member-managed LLC is to obtain a broker license,
only licensed brokers may be members
one member must be a resident of Indiana or a managing broker
employees must be licensed as brokers to conduct real estate activities
the LLC must submit the license fee and application with all required information about the LLC
If a manager-managed LLC is to obtain a broker license, the LLC must have a licensed broker who is a manager of the company who resides in Indiana, or if no manager resides in Indiana, the highest ranking officer or employee who resides in Indiana and who has the authority to bind the LLC in real estate transactions, or a managing broker.
Nonresident:
Indiana also issues broker licenses to residents of other states. To obtain an Indiana broker license, a nonresident must pass the license law section of the Indiana broker examination and file a written consent with the Commission providing that
any action taken as a result of the broker’s business in Indiana may be taken in any county where the cause of action occurs
the Commission may have service of process made upon it as agent for the nonresident, and
service subjects the nonresident broker to the jurisdiction of the courts in the county where cause of action occurs
A nonresident who meets the requirements and is issued an Indiana license is entitled to the same rights and is subject to the same obligations as any licensed resident of Indiana.
Indiana may waive the above requirements for a nonresident broker who is from another jurisdiction or moving from another jurisdiction if
the broker is licensed in the other jurisdiction
that jurisdiction’s licensing requirements are substantially similar to Indiana requirements
the broker declares he or she has studied, is familiar with, and will abide by Indiana statutes and rules
the nonresident’s jurisdiction grants the same privilege to licensees of Indiana
Remember that a nonresident commercial broker may engage in certain real estate activities in Indiana without an Indiana broker license.
Military Service Member:
Service members. Indiana issues broker licenses to military service members to allow the service member to practice real estate in Indiana. To obtain the license, the military member must have
completed a military program of training, been awarded a military occupation specialty, and performed in that specialty at a level that meets or exceeds the requirements for an Indiana real estate broker license
actively practiced real estate for at least 2 of the 5 years preceding the date of the application for an Indiana broker license
not committed any act in any state that would be grounds for refusal, suspension, or revocation of an Indiana license
paid the required real estate licensure fees
Spouses. Indiana also issues broker licenses to the spouses of military service members to allow the spouse to practice real estate in Indiana. To obtain the license, the spouse must
hold a current broker license from another jurisdiction whose licensure requirements meet or exceed the Indiana licensure requirements
demonstrate competency in real estate as required by the Commission, including completion of continuing education or the practice of real estate for at least 2 of the 5 years preceding the date of the application for an Indiana broker license
not committed any violations in any state that would be grounds for refusal, suspension, or revocation of an Indiana license
be in good standing with no discipline from the Commission; and
have paid the required real estate licensure fees
For military service members and their spouses, all relevant experience in the discharge of the service member’s official duties or the spouse’s full or part-time experience, whether paid or not, must be credited towards the required years of real estate practice.
Temporary or Provisional License:
Indiana also issues temporary practice permits and provisional licenses to military service members or their spouses who are licensed in another state. To obtain the temporary or provisional license, the service member or spouse must meet the same requirements as for an Indiana broker license as outlined above.
Any service member or spouse who has obtained the temporary or provisional license may practice real estate until
the Commission either grants or denies a license for that individual, or
the temporary permit expires, or
the service member or spouse fails to comply with the terms of the provisional license
