Indiana Real Estate Exam Practice Questions (2025)

Indiana's real estate salesperson exam has 50 state-specific questions administered by PSI. These practice questions target the topics most commonly tested under Indiana law — disclosure requirements, agency relationships, licensing rules, and trust account handling.

Indiana Practice Questions

1. The Indiana Real Estate Commission (IREC) is composed of how many members?

A) 3 B) 5 C) 7 D) 9

Answer: B — 5 members. The IREC consists of 5 members appointed by the governor and oversees licensee conduct under the Indiana Professional Licensing Agency (IPLA).

2. Under Indiana law, a broker who receives an earnest money deposit must deposit it into a trust account within:

A) 24 hours of contract acceptance B) 24 hours of the broker's receipt C) 3 business days D) 5 business days

Answer: B — 24 hours of the broker's receipt. Indiana's trust account rule is tied to when the broker receives the funds, not contract acceptance. This is a commonly tested distinction.

3. Which form is required for most residential sales in Indiana?

A) Agency Disclosure Addendum B) Seller's Residential Real Estate Sales Disclosure C) Property Condition Report D) Buyer's Inspection Waiver

Answer: B — Seller's Residential Real Estate Sales Disclosure. Indiana law requires sellers to complete this disclosure form before a purchase agreement is signed for most 1-4 unit residential properties.

4. Indiana's real estate salesperson prelicense education requirement is:

A) 40 hours B) 60 hours C) 90 hours D) 120 hours

Answer: C — 90 hours. Indiana requires 90 hours of prelicense education for salesperson candidates before they can sit for the PSI exam.

5. A licensed Indiana salesperson who wants to renew their license must complete how many continuing education hours per 3-year cycle?

A) 6 B) 12 C) 18 D) 36

Answer: B — 12 hours. Indiana requires 12 CE hours every 3-year renewal cycle, which is tied to the licensee's birthday.

6. Indiana is best described as which type of state regarding mortgage instruments?

A) Mortgage lien theory B) Title theory C) Deed of trust state D) Community property state

Answer: C — Deed of trust state. Indiana uses a deed of trust (not a traditional mortgage) as the primary security instrument for real estate financing.

7. Which of the following is an Indiana-specific protected class under fair housing law, beyond federal protected classes?

A) Ancestry and marital status B) Sexual orientation and source of income C) Political affiliation D) Veteran status

Answer: A — Ancestry and marital status. Indiana adds ancestry and marital status to the federal protected classes under its civil rights law.

8. Under Indiana Code Title 25, Article 34.1, an Indiana real estate salesperson license is renewed every:

A) 1 year B) 2 years C) 3 years on the licensee's birthday D) 4 years

Answer: C — Every 3 years on the licensee's birthday. This is uniquely tied to the individual's birthday, not a fixed calendar date.

9. In Indiana, a new salesperson licensee works under:

A) Another salesperson B) A managing broker C) The Indiana Real Estate Commission directly D) Any licensed real estate professional

Answer: B — A managing broker. Indiana salespersons must work under the supervision of a licensed managing broker.

10. The Anti-Deficiency Statute in Indiana relates to:

A) Disclosure of property defects B) Protection of sellers from certain mortgage deficiency judgments C) Limits on earnest money amounts D) Agency disclosure timing requirements

Answer: B — Protection from deficiency judgments. Indiana's Anti-Deficiency Statute limits lender recovery in certain foreclosure scenarios, a tested concept on the state portion of the exam.

Keep Practicing

These ten questions hit core Indiana-specific topics. For the full question bank — including agency law, contract scenarios, and IREC disciplinary rules — visit [CARealestate.com/states/indiana](https://carealestate.com/states/indiana) for free practice questions, no signup needed.