Which type of transaction requires a real estate license?

A real estate license is required for any residential transaction because these transactions involve the sale or lease of properties that are used for dwelling purposes. In many jurisdictions, including Indiana, the sale, lease, or management of residential real estate falls under the purview of licensed real estate professionals to ensure that consumers are protected and that the transactions are handled according to the law.

Residential transactions include various types of deals, such as selling single-family homes, apartment buildings, and even leasing residential units. The licensing requirement helps maintain industry standards and provides the necessary training and education for agents to facilitate these transactions effectively.

While commercial transactions, transactions among friends, and dealings with rental properties might also come with regulatory considerations, they do not encompass the broad requirements for licensing that apply to all residential transactions. In essence, the law aims to ensure that any engagement in a residential real estate transaction is overseen by a qualified and knowledgeable professional.