Indiana Agency
Practice Questions & Answers (2026)
Agency law is one of the most tested subjects on the Indiana real estate exam, and it's also one of the most misunderstood. The Indiana Professional Licensing Agency expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under Indiana law. Study these questions carefully — candidates who rely on national agency frameworks and don't account for IN-specific rules are among the most common failures on the state portion.
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Indiana Agency — Practice Questions & Answers
127 questions on Agency from the Indiana real estate question bank. First 10 are free — sign up to unlock all 127.
Q1. Indiana requires that the agency disclosure form be provided to a consumer:
Explanation
Indiana requires brokers to provide the agency disclosure to consumers at first substantive contact. This allows consumers to understand the broker's role and who the broker represents before sharing sensitive information.
Q2. In a dual agency transaction in Indiana, the broker CANNOT do which of the following?
Explanation
In a dual agency, the broker cannot disclose the seller's minimum acceptable price (or the buyer's maximum price) without the respective party's consent. Such confidential information could unfairly harm one party's negotiating position.
Q3. The fiduciary duty of 'obedience' requires an agent to:
Explanation
The fiduciary duty of obedience requires the agent to follow all of the client's lawful and ethical instructions promptly. The agent is not required to follow illegal or unethical instructions, such as directing the agent to violate fair housing laws.
Q4. In Indiana, a transaction broker (facilitator) represents:
Explanation
A transaction broker (or facilitator) in Indiana does not represent either party as a client and owes no fiduciary duties. The transaction broker assists both parties with the mechanics of the transaction while treating both fairly and honestly.
Q5. Express agency is created by:
Explanation
Express agency is created by an explicit, formal agreement — either written or oral — between the principal and agent. A listing agreement is the most common example of an express agency relationship in real estate.
Q6. A principal may terminate an agency relationship at any time. However, doing so before the agency term expires may result in:
Explanation
While a principal can terminate an agency relationship at will, terminating before the contractual term expires may constitute a breach of the listing agreement, making the principal liable for the broker's damages (such as marketing expenses incurred).
Q7. Under Indiana agency law, a dual agent must obtain written consent from:
Explanation
Dual agency in Indiana requires informed written consent from both the buyer and the seller before the broker may represent both parties.
Q8. Which type of agency relationship is created when a broker is appointed to represent a buyer exclusively?
Explanation
A buyer's agency relationship is created when a broker is appointed solely to represent the interests of the buyer in a transaction.
Q9. An agent's duty of loyalty requires that the agent:
Explanation
The duty of loyalty requires an agent to place the client's interests above those of all others, including the agent's personal interests.
Q10. Designated agency in Indiana means:
Explanation
Designated agency allows a principal broker to appoint separate affiliated licensees to represent the buyer and seller, reducing dual agency conflicts.
Q11. A listing agent learns that the seller's roof has an undisclosed leak. The agent's duty requires:
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