Indiana Real Estate Practice Exam
(Free Questions & Answers)
The Indiana real estate exam is administered by the Professional Licensing Agency (PLA) and tests heavily on Indiana's Seller's Residential Real Estate Sales Disclosure, which has specific exemptions for estate sales and new construction. Indiana's buyer agency agreement requirements and how dual agency must be disclosed are covered extensively in the state portion. Indiana also tests environmental issues specific to the state, including underground storage tank disclosure and the Indiana Environmental Disclosure requirements.
Administered by: Indiana Professional Licensing Agency · 150 questions · Passing score: 75%
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Updated May 2026 · Indiana Professional Licensing Agency exam outline
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Free Indiana Real Estate Practice Exam Questions
Test your knowledge with these Indiana real estate practice questions. Each question is based on topics from the Indiana Professional Licensing Agency exam and includes detailed explanations.
Q1. Which body regulates real estate licenses in Indiana?
Explanation
The Indiana Real Estate Commission regulates real estate brokers and salespersons in the state of Indiana. It operates under the Indiana Professional Licensing Agency (PLA).
Q2. 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.
Q3. In Indiana, if a seller rejects a buyer's offer and makes a counteroffer, the original offer:
Explanation
A counteroffer is a rejection of the original offer and the creation of a new offer. Once the seller counters, the original offer is terminated and the buyer is not obligated to accept or respond.
Q4. A wraparound mortgage is BEST described as:
Explanation
A wraparound mortgage is a form of seller financing in which the seller takes back a new mortgage from the buyer that includes (wraps around) the existing underlying mortgage. The seller continues to make payments on the original loan from the buyer's payments.
Q5. A fixture is an item of personal property that has become:
Explanation
A fixture is an item that was once personal property but has become permanently attached to real property (e.g., built-in cabinets, light fixtures). Fixtures are generally included in the sale of real property unless specifically excluded in the contract.
Q6. An appraisal conducted for mortgage lending purposes is typically ordered by:
Explanation
For mortgage lending purposes, the appraisal is ordered by the lender (not the buyer or agent) to ensure the collateral (the property) is worth at least the loan amount. The borrower typically pays the appraisal fee.
Q7. Which of the following is NOT a protected class under the federal Fair Housing Act?
Explanation
Sexual orientation is NOT a protected class under the federal Fair Housing Act (though some states and localities have added it). The seven federal protected classes are: race, color, religion, sex, national origin, familial status, and disability.
Q8. A quitclaim deed conveys:
Explanation
A quitclaim deed conveys only whatever interest the grantor actually has in the property — with no warranties or guarantees of any kind. If the grantor has no interest, the grantee receives nothing.
Q9. A buyer in Indiana wants to buy a home priced at $285,000 with a 5% down payment. What is the loan amount?
Explanation
Down payment = $285,000 × 5% = $14,250. Loan amount = $285,000 − $14,250 = $270,750. To solve this, multiply the relevant values: $285,000 at 5%.. The correct answer is $270,750.. This is a common calculation on the Indiana real estate exam.
Q10. Lead-based paint disclosure is required for homes built before:
Explanation
Federal law requires sellers and landlords to disclose known lead-based paint hazards in residential properties built before 1978.
Q11. Zoning ordinances are enacted by local governments primarily to:
Explanation
Zoning ordinances are local laws that regulate how land may be used, separating residential, commercial, industrial, and other uses to promote compatible development.
Q12. A property manager's primary duty is to:
Explanation
A property manager acts as an agent of the property owner and has a fiduciary duty to manage the property in accordance with the owner's investment goals.
Q13. How many pre-license education hours are required for an Indiana real estate broker license?
Explanation
Indiana requires 90 hours of pre-license education for a real estate broker license.
Q14. 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.
Q15. A buyer includes an inspection contingency in their purchase offer. After the inspection, the buyer may:
Explanation
An inspection contingency gives the buyer the right to have the property inspected and, based on the findings, to request repairs, credits, or price reductions — or to cancel the contract within the specified contingency period.
Q16. Regulation Z (Truth in Lending) requires disclosure of the APR for all of the following EXCEPT:
Explanation
Regulation Z (TILA) applies to consumer credit transactions, not business loans. Business loans over $25,000 are generally exempt from TILA disclosure requirements, including the APR requirement.
Q17. In Indiana, a mechanic's lien may be filed by:
Explanation
A mechanic's lien (or materialman's lien) may be filed by contractors, subcontractors, or suppliers who have provided labor or materials to improve a property and have not been paid. It is a security interest against the improved property.
Q18. Physical deterioration that can be repaired or corrected economically is called:
Explanation
Curable physical deterioration refers to physical deterioration (such as worn carpets or peeling paint) that can be repaired at a cost equal to or less than the resulting increase in value. It is economically worthwhile to fix.
Q19. Under the Fair Housing Act, which of the following is a permissible advertising practice?
Explanation
Describing neighborhood features such as 'great schools nearby' is a permissible and factual statement. However, using terms that suggest preference or discouragement based on protected characteristics (such as 'Christians preferred' or 'ideal for young professionals') violates the Fair Housing Act.
Q20. In Indiana, when does title to property legally transfer from seller to buyer?
Explanation
Title transfers when a valid deed is properly delivered to and accepted by the grantee. Recording provides constructive notice to the public but is not required for the actual transfer of title between the parties.
Q21. A property in Indiana is assessed at $175,000. The local tax rate is $2.40 per $100 of assessed value. What is the annual property tax?
Explanation
Annual property tax = (Assessed Value ÷ $100) × Tax Rate. ($175,000 ÷ $100) × $2.40 = 1,750 × $2.40 = $4,200.
Q22. Radon is a naturally occurring gas that:
Explanation
Radon is a colorless, odorless, radioactive gas formed by the decay of uranium in soil and rock; it can enter buildings through cracks and is a leading cause of lung cancer.
Q23. A variance is a(n):
Explanation
A variance is an official exception to the strict application of zoning requirements granted when literal enforcement would cause undue hardship on a property owner.
Q24. A management agreement is essential because it:
Explanation
The management agreement is the contract between property owner and manager that establishes the manager's authority, responsibilities, reporting requirements, and compensation.
Q25. How many questions are on the Indiana real estate broker licensing exam?
Explanation
The Indiana real estate broker licensing exam consists of 125 questions. Candidates must achieve a passing score of 75%.
1,500+ questions · Timed mock exams · Detailed explanations
Indiana Real Estate Exam — What to Expect
What Is On The Indiana Real Estate Exam?
The Indiana real estate salesperson exam is administered by the Indiana Professional Licensing Agency and tests both national real estate principles and Indiana-specific laws and regulations. The exam contains 150 multiple-choice questions, and you must score at least 75% to pass.
The national portion covers topics that apply in every state: property ownership, land use controls, valuation and market analysis, financing, agency law, contracts, leasing and property management, transfer of title, fair housing laws, and real estate calculations. The state portion tests knowledge specific to Indiana — including regulations set by the Indiana Professional Licensing Agency, Indiana agency disclosure requirements, and state-specific contract and closing practices.
Topics covered on the Indiana exam include: Property Ownership, Agency Law, Contracts, Finance, Indiana License Law. Candidates who struggle on the IN exam typically underestimate the state-specific portion — the national content is well-covered by most study materials, but Indiana law questions require targeted preparation.
Official Indiana Exam Content Areas
Source: Indiana Professional Licensing Agency · Updated June 2026
| Content Area | Questions |
|---|---|
| Property Ownership | 6 |
| Land Use Controls and Regulations | 4 |
| Valuation and Market Analysis | 6 |
| Financing | 8 |
| General Principles of Agency | 10 |
| Property Disclosures | 5 |
| Contracts | 14 |
| Leasing and Property Management | 2 |
| Transfer of Title | 6 |
| Practices of Real Estate | 11 |
| Real Estate Calculations | 8 |
| Indiana State Section (Indiana Real Estate Commission, licensing requirements, statutory and regulatory requirements) | 70 scored |
- ▸Indiana has an unusually large state section of 70 scored questions — the largest state section of any Pearson VUE state; total is 150 questions
- ▸Administered by Pearson VUE; passing score is a scaled 75 (on a 0–100 scale) for both sections
- ▸Indiana calls its entry-level license 'Broker' — the exam uses this terminology throughout
- ▸National section question counts are from the official Pearson VUE content outline (pub. #099913, effective August 2024)
- ▸Source: Pearson VUE Indiana Candidate Handbook (March 2025, pub. #091500) and Indiana PLA (in.gov/pla)
Practice Indiana questions by topic — start with Indiana License Law, Agency, and Contracts to build your foundation, then work through remaining topics.
How Many Questions Are On The Indiana Exam?
The Indiana real estate salesperson exam has 150 multiple-choice questions. The exam is divided into a national section covering general real estate principles and a state section covering Indiana-specific laws administered by the Indiana Professional Licensing Agency. You have 4 hours to complete the exam.
Indiana Real Estate Exam Passing Score
You need a 75% to pass the Indiana real estate exam. The first-time pass rate in Indiana is approximately 58%, which means preparation is essential — most candidates who fail do so because they focused on national content and underestimated the IN-specific portion. Our Indiana practice exam is built specifically around the Indiana Professional Licensing Agency exam outline.
Read our complete Indiana exam study guide — state-specific topics, 5-week study plan, and what to focus on before exam day.
Most Difficult Topics On The Indiana Exam
These are the areas where Indiana candidates most commonly lose points — and a key reason why some states produce harder real estate exams than others.
Indiana's Professional Licensing Agency requirements, including the 90-hour pre-license education, principal broker supervision rules, and continuing education requirements, are tested on the state portion.
Indiana's Seller's Residential Real Estate Sales Disclosure form has specific exemptions (probate, foreclosure, new construction) and buyer remedies. The conditions under which disclosure is required are a common exam topic.
Indiana's requirements for written buyer agency agreements — including compensation disclosure and the conditions that create an agency relationship — differ from national norms and are tested on the state exam.
Indiana's underground storage tank disclosure requirements and the Indiana Environmental Disclosure provisions add state-specific content that doesn't appear in national study materials.
Indiana Real Estate Math
The Indiana real estate exam includes math questions covering commission calculations, loan-to-value (LTV) ratios, property tax prorations, area and volume, and appreciation/depreciation. A common example: if a property sells for $350,000 and the total commission is 6%, split equally between listing and buyer's broker, each side earns $10,500. Proration questions — such as calculating how many days of property taxes a seller owes at closing — are also common. On the IN exam, you will not need a calculator for most math questions, but you do need to understand the formulas. Practice the "T-bar" method for commission splits and the 360-day banker's year for prorations.
🧮 See all exam math formulas →How To Get Your Indiana Real Estate License
- 1Complete 90 hours of state-approved pre-license education covering topics required by the Indiana Professional Licensing Agency.
- 2Submit your application to the Indiana Professional Licensing Agency and pay the required fees (exam fee: $53).
- 3Pass the Indiana real estate salesperson exam (150 questions, 75% to pass).
- 4Complete a background check and fingerprinting as required by Indiana law.
- 5Find a licensed sponsoring/employing broker to activate your license.
- 6Complete any required post-licensing education within the timeframe set by the Indiana Professional Licensing Agency.
Best Study Strategy For The Indiana Exam
Start with Indiana license law first. State-specific regulations administered by the Indiana Professional Licensing Agency make up a significant portion of the IN exam and are not covered in most national study materials.
Master the math early. The Indiana real estate exam includes questions on commission calculations, prorations, loan-to-value ratios, and area calculations. Set aside dedicated math practice sessions — don't leave it until the last week.
Take timed practice exams. The Indiana exam has 150 questions within a 4 hours time limit. Simulate exam conditions to build stamina and identify weak topics before exam day.
Focus heavily on agency law. Agency relationships, disclosure requirements, and fiduciary duties are consistently among the most-tested topics on the IN exam. Understand the difference between seller's agent, buyer's agent, dual agent, and transaction broker in the context of Indiana law.
Review Fair Housing thoroughly. Federal Fair Housing Act protections apply in all states, but Indiana may have additional protected classes. Know both federal and Indiana-specific protections cold — this topic appears on virtually every exam.
Use active recall, not passive reading. Instead of re-reading notes, quiz yourself. Use flashcards or practice questions to test retention. Research shows active recall improves long-term retention significantly compared to passive review.
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