Indiana 90-Hour Broker Course Practice Exam

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• Which document typically outlines property taxes and you maintain necessary insurance coverage?
• How is "amortization" defined?
• Which of the following would be considered a benefit of an "as-is" sale?
• What does "vacant land" signify in the context of real estate?
• What is often a requirement for self-employed individuals regarding loan applications?
• Which of the following is an essential duty of a managing broker?
• What is a "broker's lien"?
• What happens if a broker violates ethical standards in Indiana?
• In which market do investors typically buy previously owned mortgages?
• For what reason might a buyer choose to pursue a short sale?
• If Shelly provided Brian with a loan estimate, who does she most likely represent?
• Brokers can be held liable for the acts or omissions of their licensees. This is known as ______.
• Which entity deals specifically with financial institutions in Indiana?
• What geographical location determines Indiana tax rates?
• During closing, who is responsible for delivering the title commitment?
• What is the primary function of a deed in real estate?
• Who does errors and omissions insurance cover in real estate transactions?
• What is the primary role of a "real estate appraiser"?
• What do "fiduciary duties" refer to in real estate?
• Which activity requires a license in real estate?
• The three methods of dispute resolution are mediation, arbitration, and ______.
• In a real estate transaction, whom may a licensee represent?
• What type of property ownership involves both the land and any structures on it?
• A property manager acts as which type of agent for the owner?
• If an Indiana licensee voluntarily requests license deactivation, how long do they have to reactivate their license?
• What does a financing contingency allow a buyer to do?
• Which document outlines the terms between the lender and borrower regarding a mortgage?
• If the monthly property tax rate is $74.15 and the closing is on April 30, what will the seller owe at closing if no payments have been made?
• What would you likely find on a rent roll?
• For safety, what personal item should not be shown to strangers?
• What is a pro forma in real estate?
• What is the definition of "commission" in real estate?
• If an owner-occupied home in Hammond valued at $135,000 has a tax rate of 5.10%, what is the approximate property tax bill considering the homestead deductions?
• A duplex has a monthly gross rental income of $1,800 and an appraiser's GRM of 125x. What is the property's estimated value?
• What is considered an act of discrimination under federal fair housing laws?
• How frequently must real estate licenses be renewed in Indiana?
• Which mortgage market involves lending institutions that lend directly to consumers?
• What does an "as-is" sale imply?
• Which of the following correctly describes the timeline for a home appraisal?
• How does supply and demand influence the competitive environment in real estate?
• What can be included in listing photos to enhance appeal?
• When negotiating in a competitive market, what strategy is generally least effective?
• Which term describes property that is not currently developed or has no structures?
• Gertie and Frank's marriage in a skilled nursing center, due to their condition, represents a(n) ______ contract.
• What term describes the conversion of real property into personal property by detaching it?
• Which of the following service facilities is considered tax exempt?
• Why might a buyer provide earnest money?
• A negotiable instrument must contain an order to pay or what other element?
• Whose responsibility is it to complete the Seller's Residential Real Estate Sales Disclosure form in Indiana?
• How long is a typical real estate license valid in Indiana before it needs renewal?
• For an effective property investment, what type of entity is not typically used?
• Which type of agreement ensures payment regardless of the outcome of the transaction?
• What is the term for the overhang on a roof?
• What is usually a requirement of obtaining a conditional use permit?
• What is the function of the Department of Financial Institutions in Indiana?
• Which professional is primarily responsible for representing the interests of the buyer in a real estate transaction?
• What is the purpose of a conditional use permit?
• When friends replace a party in a real estate contract, this is known as what?
• What is the name for a process that converts income to value?
• How often must Indiana real estate brokers complete continuing education?
• In real estate transactions, what does "escrow" refer to?
• What activity does an independent contractor like Bart primarily focus on?
• Which choice correctly identifies the seven protected classes according to the Fair Housing Act?
• When advertising real estate services or listed property, how must the name of your firm be disclosed?
• The primary sources of law in the U.S. include case law, administrative law, constitutional law, and __________.
• Which laws does the Office of Fair Housing and Equal Opportunity uphold?
• What is the definition of real property?
• How is the daily rate for annual insurance calculated in a statutory year proration?
• What is "property tax"?
• Which entity oversees the regulation of real estate brokers in Indiana?
• Who is a listing agent?
• What is the primary purpose of the Indiana Real Estate Commission?
• What does the acronym "MLS" stand for in real estate?
• If a rectangular building measures 40 feet by 20 feet, what is its area?
• What structural component bears the weight of a building?
• A covenant in a lease primarily aims to protect which party's interests?
• What is "dual agency" in real estate?
• What is the maximum amount of commission a broker can receive if they are under a written listing agreement?
• What does the "Indiana Residential Real Estate Sales Disclosure Act" require?
• What is "ethics" in the context of real estate?
• What type of contract did Jenny and Kali enter into when they agreed to pay for their lunch?
• What type of fund do lenders typically require to cover taxes and insurance?
• What qualifies a licensee as a broker in Indiana?
• What type of buyer agency agreement provides the most representation from a single agent?
• What is a common condition that might be included in a purchase offer?
• What does a Loan Estimate allow the consumer to gauge primarily?
• What defines the buyer's agency in real estate?
• What is a quitclaim deed?
• What is a "closing disclosure"?
• What type of real estate market occurs when supply is high and demand is low?
• In Indiana, what type of license is required to manage a property?
• Which two types of prorations are commonly recognized?
• What does "contingency" mean in a real estate contract?
• In states lacking full disclosure requirements, who is responsible for reviewing disclosures and obtaining a home inspection?
• Which type of transaction requires a real estate license?
• Brenda and Joe have 20% cash to put down toward the purchase of their home. What might be their best option for getting a traditional mortgage loan?
• What is the role of a note in Brendon's loan documents?
• What is the impact of an increased number of homes on the market regarding pricing?
• What is meant by "exclusive right to sell"?
• Which antitrust violation occurs when multiple businesses conspire against another?
• What does being a "REALTOR" indicate about a real estate agent?
• What is the term for when a seller's agent also works for the best interest of the buyer in a transaction?
• In the scenario where Joe and Emma Parsons are working informally with their neighbor Kyle, what type of agency agreement is exemplified?
• What are artificial attachments to land that include items like fencing and buildings referred to?
• Why must a seller disclose the presence of an underground storage tank?
• What is the formula to calculate a property's value using gross monthly income and GRM?
• What are closing costs?
• How is net operating income calculated using gross potential rental income?
• What are buyers typically concerned about when it comes to property taxes?
• What type of loan may be appropriate if the buyer is obtaining seller financing?
• Why would a buyer want to know whether any additions or alterations were made to a property?
• What is the significance of conducting a "title search"?
• What does title insurance protect against?
• What form should be provided to borrowers no fewer than three days prior to closing?
• Under what circumstances can an individual licensed as an Indiana broker perform brokerage duties?
• As an independent contractor, what right does Bart's managing broker have?
• How does the Department of Financial Institutions affect real estate transactions?
• What does "comparative market analysis" (CMA) help determine?
• How do market conditions affect property values?
• A buyer is financing a $300,000 loan with a lender charging 1.5% as an origination fee. What will the loan origination fee be?
• Why would a listing agreement that restricts buyers to only native-born U.S. citizens be void?
• What does the closing date in a purchase agreement refer to?
• The Federal Housing Administration helps prospective homeowners by ______.
• What is a potential drawback for first-time buyers securing financing through a land contract?
• If a container measures 5.5 meters by 3.7 meters by 5 meters, how many cubic meters does it hold?
• What is classified as a material fact in real estate transactions?
• In the event of a valid contract, what is the fundamental requirement that must be present?
• Which statement best describes an "open listing"?
• What do improved properties typically have that provides value?
• What term is used when an appraiser uses comparable properties to determine a range of values for a subject property?
• If endangered species or wetlands exist on a site, what is likely true about the sales price?
• What is the primary purpose of a short sale in real estate?
• What does a conditional use permit require from local authorities?
• What is required from sellers under the Indiana Residential Real Estate Sales Disclosure Act?
• Which transaction is exempt from the Seller's Residential Real Estate Sales Disclosure form requirement to disclose property condition?
• How is fair market value best defined?
• What is the primary focus of a property management license in Indiana?
• What is the primary purpose of a home inspection?
• If Janice's property goes to the School for the Gifted after Jacob's death, what interest do they currently hold?
• What does "deed in lieu of foreclosure" entail?
• What is the term for the slope of a roof?
• What is the minimum age requirement to become a broker in Indiana?
• How is "property management" defined in real estate?
• What does the term "credit loss" refer to in rental income calculations?
• What is the primary role of the Indiana Association of Realtors?
• What legal instrument is commonly used to convey property ownership?
• In real estate, what does "encumbrance" refer to?
• What best defines the general concept of an investment?
• A $300,000 property appreciated in value by 3%. What is its new value?
• In the context of real estate, what does the acronym GRM stand for?
• What is the primary purpose of a "sales contract"?
• What is a statutory duty of an Indiana licensee working with a seller under a written agreement if the licensee isn't the seller's agent?
• What is the term for when a borrower sells their property for less than the loan balance to avoid foreclosure?
• What typically happens if a property is sold below market value?
• What is meant by "earnest money"?
• Which laws prevent real estate licensees from setting standard commission rates?
• If you want to determine the linear footage of a property, which type of calculator would be the most suitable?
• If the value after the standard homestead deduction is $180,000, what is the supplemental homestead percentage?
• What is a "listing agreement"?
• What is the purpose of a title search in a real estate transaction?
• What does a covenant signify between a lessor and lessee?
• What factor must be considered when determining the financial feasibility of a property investment?
• What is one of the high-quality standards for listing photos?
• When selling property that includes personal property, which additional documents are typically required?
• What is the primary goal for a consumer when reviewing a Loan Estimate?
• What is defined as a description of land that specifies the boundaries and location of a specific piece of real property?
• Which of the following is not a component of a purchase agreement?
• In the transaction between Sima and Burt, who is considered the client?
• What is a certified opinion or estimate of a property's value as of a specific date called?
• In a cold market, which negotiation strategy would be effective when making an offer for a buyer client?
• What does "escrow" refer to in real estate transactions?
• What is "market value"?
• What is the function of the Indiana Code Title 25, Article 34?
• Who is Joe's agent after he signed a listing agreement with Marisa?
• Who is responsible for reviewing transactional documents and ensuring collateral for a loan is clear of encumbrances at a closing?
• What legal term refers to the property interest that remains after a life estate?
• What is the definition of "supply and demand" in real estate?
• Earnest money is sometimes referred to as a "down payment on the ______."
• What is the definition of "zoning" in real estate?
• What are "investment properties" primarily used for?
• What type of land does not have any buildings or improvements?
• Which of these situations would result in the earnest money being disbursed to the seller?
• In the context of a mortgage, which component of PITI usually receives the largest portion of the payment initially?
• Which statement about real property is correct?
• What type of insurance protects against title defects and ownership disputes?
• What is a Real Estate Mortgage Investment Conduit (REMIC)?
• Why is it important to renew a real estate license?
• What factor typically influences the commission paid to real estate agents?
• You represent Cynthia and Ronald, who signed a contract to buy Margie's home. The contract included the phrase, "time is of the essence." You explain to Cynthia and Ronald that this phrase means ______.
• What is the main purpose of an appraisal in real estate transactions?
• What is a deed primarily considered as?
• What typically characterizes a short sale?
• How do predatory lenders typically take advantage of consumers?
• According to Indiana law, what condition must a buyer meet for foreclosure protections to apply under a land contract?
• Two designated agents, Mitch and Mickey, represent the buyer and seller in a single transaction, respectively. What else do you know about the agency situation?
• Which professionals may have Indiana license requirements waived if they provide proof of licensure in good standing?
• What condition might increase the chances of foreclosure for homeowners?
• Which of the following closing activities occurs on the day of closing?
• What is a primary purpose of using a trust document during a property sale?
• What constitutes a "fair housing" violation?
• Which party can void the contract if Mary, who has Alzheimer's, is deemed to lack legal capacity?
• Which entity ensures that contractors perform their work according to code by inspecting their job sites?
• What additional requirement do self-employed individuals typically face when seeking a home loan?
• How many hours of continuing education are required every two years for Indiana real estate brokers?
• What is a "short sale" in real estate?
• What does a credit score indicate to a lender?
• What is an organization that allows many investors to jointly participate in real estate investment and must adhere to SEC regulations called?