Indiana Real Estate Commission Laws and Regulations

Indiana Real Estate Commission 

Laws and Regulations 

A compilation of the Indiana Code and Indiana Administrative Code 

2008 Edition 

Indiana Real Estate Commission 

Indiana Professional Licensing Agency 

402 West Washington Street, Room W072 

Indianapolis, Indiana 46204 

Phone: (317) 234-3009 

Fax: (317) 233-4236 or (317) 233-5559 

Email: pla9@pla.in.gov 

Website: www.PLA.IN.gov 

1

NOTICE: This compilation incorporates the most recent revisions of statutes and administrative rules 

governing the real estate profession, as of July 1, 2008. Note that this compilation is not an official version 

of the Indiana Code. It is distributed as a general guide to individuals in the real estate profession 

regulated by the Indiana Professional Licensing Agency. It is not intended to be offered as legal advice, 

and it may contain typographical errors. The Indiana Real Estate Commission and the Indiana 

Professional Licensing Agency are prohibited from providing legal advice on issues contained herein. For 

legal advice, please consult an attorney. To obtain official copies of the Indiana Code or Indiana 

Administrative Code, contact your nearest public library or visit the website of the Indiana General 

Assembly at www.in.gov/legislative. 

2

INDIANA REAL ESTATE COMMISSION 

July 2008 Edition 

TABLE OF CONTENTS 

INDIANA CODE § 25-34.1 – Real Estate Brokers and Salespersons 

Chapter 1. Definitions and General Provisions IC 25-34.1-1 Page 5 

Chapter 2. Creation of Commission IC 25-34.1.2 Pages 5 - 6 

Chapter 3. Licensing IC 25-34.1-3 Pages 6 - 10 

Chapter 4. Principal Brokers IC 25-34.1-4 Pages 10 - 11 

Chapter 5. Educational Courses IC 25-34.1-5 Pages 11 - 12 

Chapter 6. Enforcement IC 25-34.1-6 Pages 12 - 13 

Chapter 7. Real Estate Recovery Fund IC 25-34.1-7 Pages 13 - 15 

Chapter 8. Real Estate Appraiser Licensure and Certification Board IC 25-34.1-8 Pages 15 - 17 

Chapter 9. Continuing Education IC 25-34.1-9 Pages 17 - 18 

Chapter 10. Real Estate Agency Relationships IC 25-34.1-10 Pages 18 - 21 

Non-Code Provisions P.L.145-2008 Pages 21 - 22 

INDIANA CODE § 23-1.5 – Professional Corporations 

Chapter 1. Definitions IC 23-1.5-1 Pages 23 - 24 

Chapter 2. Administrative Provisions IC 23-1.5-2 Pages 24 - 25 

Chapter 3. Ownership IC 23-1.5-3 Pages 25 - 27 

Chapter 4. Change of Corporate Form IC 23-1.5-4 Pages 27 - 28 

Chapter 5. Foreign Professional Corporations IC 23-1.5-5 Page 28 

INDIANA CODE § 24-2.6 – Special Provisions Concerning Certain Transactions 

Chapter 1. Interest Limits and Application of Other Laws IC 24-4.6-1 Page 29 

INDIANA CODE § 32-21 – Conveyance Procedures for Real Property 

Chapter 5. Residential Real Estate Sales Disclosure IC 32-21-5 Pages 30 - 31 

Chapter 6. Psychologically Affected Properties IC 32-21-6 Page 31 

INDIANA CODE § 25-1 – General Provisions 

Chapter 1. 

Evidence of License Applicant's Payment of Personal Property 

Taxes Required IC 25-1-1 Page 32 

Chapter 1.1. Effect of Criminal Convictions on Licensed or Registered Persons IC 25-1-1.1 Pages 32 - 33 

Chapter 1.2 . Effect of Delinquency in Child Support Payments on Licensed or Registered Persons IC 25-1-1.2 Pages 33 - 34 

Chapter 2. Renewal of Licenses Granted by State Agencies. Notice of Expiration IC 25-1-2 Pages 34 - 35 

Chapter 3. Civil Immunity of Regulatory Agencies IC 25-1-3 Pages 35 - 36 

Chapter 4. Continuing Education IC 25-1-4 Pages 36 - 38 

Chapter 6. Professional Licensing Agency IC 25-1-6 Pages 38 - 40 

3

Chapter 7. Investigation and Prosecution of Complaints Concerning Regulated Occupations IC 25-1-7 Pages 40 - 41 

Chapter 8. Occupational and Professional Licensure, Registration, and Certification Fees IC 25-1-8 Pages 42 - 44 

Chapter 10. Reserved IC 25-1-10 Page 44 

Chapter 11. Professional Licensing Standards of Practice IC 25-1-11 Pages 44 - 47 

Chapter 12. Renewal of Licenses Held by Individuals in Military Service IC 25-1-12 Page 47 

Chapter 14. Meetings IC 25-1-14 Page 48 

Non-Code Provision P.L.206-2005 Page 48 

INDIANA ADMINISTRATIVE CODE – TITLE 876 – Indiana Real Estate Commission 

Title 876, Article 1 – General Provisions 

Rule 1. Definitions; Licensing; Miscellaneous Provisions 876 IAC 1-1 Pages 49 - 54 

Rule 2. Out-of-State Developments (Repealed) 876 IAC 1-2 Page 54 

Rule 3. Condominiums and Time Sharing Plans (Repealed) 876 IAC 1-3 Page 54 

Rule 4. Residential Real Estate Sales Disclosure 876 IAC 1-4 Pages 54 - 57 

Title 876, Article 2 – Real Estate Courses and Licensing Requirements for Brokers and Salespersons 

Rule 1. Definitions; General Provisions 876 IAC 2-1 Pages 57 - 58 

Rule 2. Real Estate Schools; General Requirements 876 IAC 2-2 Pages 58 - 60 

Rule 3. Instructors 876 IAC 2-3 Page 60 

Rule 4. Conduct of Courses 876 IAC 2-4 Pages 60 - 61 

Rule 5. Real Estate Schools; Miscellaneous Prohibitions 876 IAC 2-5 Pages 61 - 62 

Rule 6. Fundamentals of Real Estate Salesperson Course, General 876 I AC 2-6 Pages 63 - 64 

Rule 7. Real Estate Salesperson Course; Major Subject Area Emphasis 876 IAC 2-7 Page 64 

Rule 8. Real Estate Salesperson Course; Outline 876 IAC 2-8 Pages 64 - 74 

Rule 9. Real Estate Salesperson Course; Required Instructional Materials 876 IAC 2-9 Pages 74 - 75 

Rule 10. Fundamentals of Real Estate Broker Course; General 876 IAC 2-10 Pages 75 - 77 

Rule 11. Real Estate Broker Course; Major Subject Area Emphasis 876 IAC 2-11 Page 77 

Rule 12. Real Estate Broker Course; Outline 876 IAC 2-12 Pages 77 - 83 

Rule 13. Real Estate Brokerage Operation 876 IAC 2-13 Pages 83 - 84 

Rule 14. Real Estate Finance 876 IAC 2-14 Pages 84 - 89 

Rule 15. Real Estate Broker Course; Required Instructional Material 876 IAC 2-15 Page 89 

Rule 16. Licensure; Miscellaneous Educational and Experience Provisions 876 IAC 2-16 Page 89 

Rule 17. Examinations 876 IAC 2-17 Pages 89 - 90 

Rule 18. Fee Schedule 876 IAC 2-18 Page 90 

Title 876, Article 4 – Real Estate Continuing Education 

Rule 1. Sponsors of Courses; Approval 876 IAC 3-1 Pages 90 - 92 

Rule 2. Course Requirements 876 IAC 3-2 Pages 92 - 95 

Rule 3. Distance Learning Continuing Education 876 IAC 3-3 Pages 95 - 97 

4

INDIANA CODE § 25-34.1 

ARTICLE 34.1. REAL ESTATE BROKERS AND SALESPERSONS 

INDIANA CODE § 25-34.1-1 

Chapter 1. Definitions and General Provisions 

IC 25-34.1-1-1 Short title 

Sec. 1. This article shall be known as the "Real Estate Broker and 

Salesperson Licensing Act." 

As added by Acts 1979, P.L.248, SEC.1. 

IC 25-34.1-1-2 Definitions 

Sec. 2. As used in this article: 

(1) "Person" means an individual, a partnership, a corporation, or a 

limited liability company. 

(2) "Commission" means the Indiana real estate commission. 

(3) "Real estate" means any right, title, or interest in real property. 

(4) "Broker" means a person who, for consideration, sells, buys, 

trades, exchanges, options, leases, rents, manages, lists, or 

appraises real estate or negotiates or offers to perform any of those 

acts. 

(5) "Salesperson" means an individual, other than a broker, who, for 

consideration and in association with and under the auspices of a 

broker, sells, buys, trades, exchanges, options, leases, rents, 

manages, or lists real estate or negotiates or offers to perform any of 

those acts. 

(6) "Broker-salesperson" means an individual broker who is acting in 

association with and under the auspices of another broker. 

(7) "Principal broker" means a broker who is not acting as a brokersalesperson. 

(8) "License" means a broker or salesperson license issued under 

this article and which is not expired, suspended, or revoked. 

(9) "Licensee" means a person who holds a license issued under this 

article. The term does not include a person who holds a real estate 

appraiser license or certificate issued under the real estate appraiser 

licensure and certification program established under IC 25-34.1-3-8. 

(10) "Course approval" means approval of a broker or salesperson 

course granted under this article which is not expired, suspended, or 

revoked. 

(11) "Licensing agency" means the Indiana professional licensing 

agency established by IC 25-1-5-3. 

(12) "Board" refers to the real estate appraiser licensure and 

certification board established under IC 25-34.1-8-1. 

(13) "Commercial real estate" means a parcel of real estate other 

than real estate containing one (1) to four (4) residential units. This 

term does not include single family residential units such as: 

(A) condominiums; 

(B) townhouses; 

(C) manufactured homes; or 

(D) homes in a subdivision; 

when sold, leased, or otherwise conveyed on a unit-by-unit basis, 

even if those units are part of a larger building or parcel of real estate 

containing more than four (4) residential units. 

(14) "Out-of-state commercial broker" includes a person, a 

partnership, an association, a limited liability company, a limited 

liability partnership, or a corporation that is licensed to do business 

as a broker in a jurisdiction other than Indiana. 

(15) "Out-of-state commercial salesperson" includes a person 

affiliated with an out-of-state commercial broker who is not licensed 

as a salesperson under this article. 

5 

As added by Acts 1979, P.L.248, SEC.1. Amended by Acts 1982, 

P.L.113, SEC.79; P.L.132-1984, SEC.42; P.L.186-1990, SEC.11; 

P.L.183-1991, SEC.5; P.L.128-1994, SEC.1; P.L.64-2004, SEC.16; 

P.L.2-2005, SEC.71; P.L.1-2006, SEC.479. 

IC 25-34.1-1-3 Nonconflicting rules to remain in effect 

Sec. 3. All rules adopted under the former IC 25-34 and in effect on 

December 31, 1979, which are not in conflict with this article shall remain 

in effect under IC 25-34.1 until they are amended or repealed. 

As added by Acts 1979, P.L.248, SEC.1. Amended by P.L.3-1990, 

SEC.91. 


Chapter 2. Creation of Commission 

IC 25-34.1-2-1 Creation; qualification of members; appointment; 

term; vacancies 

Sec. 1. (a) The Indiana real estate commission is created. 

(b) The commission consists of the following: 

(1) Nine (9) district members. Each Indiana congressional district 

must be represented by one (1) individual appointed under this 

subdivision. 

(2) One (1) real estate member at large. 

(3) Two (2) citizen members at large. 

A member described in subdivision (1) must be a resident of the 

represented district for not less than one (1) year. A member described in 

subdivision (1) or (2) must have engaged in business as a license broker 

for not less than five (5) years. Citizen members at large shall be 

appointed to represent the general public, must be residents of Indiana, 

and must have never been associated with the real estate business in 

any way other than as a consumer. 

(c) Each member of the commission shall be appointed by the 

governor and shall serve a four (4) year term. If a successor has not 

been appointed, the current member shall serve until a successor is 

appointed and qualified. If a vacancy occurs on the commission, the 

governor shall appoint an individual to serve the unexpired term of the 

previous member and until a successor is appointed and qualified. 

(d) A member of the commission may not hold a state or federal 

elective office. 


P.L.222, SEC.259; P.L.170-2002, SEC.128. 

IC 25-34.1-2-2 Officers; term; duties; executive director 

Sec. 2. (a) The commission shall elect from its membership a chairman 

and a vice chairman. The chairman and vice chairman shall serve in that 

capacity for one (1) year and until a successor is elected. The chairman 

and vice chairman may serve consecutively no more than two (2) terms 

in that capacity. The chairman shall preside at all meetings. The vice 

chairman shall preside at meetings in the absence of the chairman and 

shall perform other duties as the chairman may direct. 

(b) The licensing agency shall provide to the commission an executive 

director. The executive director may not be a member of the commission. 

The executive director shall: 

(1) provide reasonable notice to all commission members of the time 

and place of each meeting; 

(2) keep a record of all meetings, of all votes taken by the 

commission, and of all other proceedings, transactions, 

communications, official acts, and records of the commission; 

(3) keep a current file of all licenses and licensees; and 

(4) perform any other duties which the commission may prescribe. 


P.L.113, SEC.80; P.L.132-1984, SEC.43.

IC 25-34.1-2-3 Meetings; time and place; quorum; written consent to 

action 

Sec. 3. (a) The commission shall meet upon the call of the chairman or 

at the written request of any seven (7) members of the commission. The 

chairman shall establish the time and place of all meetings. 

(b) A majority of the current members of the commission constitutes a 

quorum at a meeting for the purpose of transacting business. A majority 

vote of all members present at a meeting is necessary to bind the 

commission. 

(c) Any action required or permitted to be taken at a meeting of the 

commission may be taken without a meeting if, prior to that action: 

(1) a written consent to the action, either executed as a single 

document or in counterparts, is signed by all members of the 

commission; or 

(2) all members orally consent to the action and subsequently 

confirm that consent in writing. 

The written consent or confirmation shall set forth the action under 

consideration and shall be filed with the minutes of the meetings which 

are kept by the executive director. A written consent or a confirmed oral 

consent shall be treated for all purposes as a unanimous vote of the 

members and as though the vote had taken place at a regular meeting of 

the commission. 


IC 25-34.1-2-4 Compensation of members; expenses 

Sec. 4. (a) Each member is entitled to the minimum salary per diem as 

provided in IC 4-10-11-2.1(b). 

(b) Each member is entitled to reimbursement for traveling and other 

expenses, as provided in the state travel policies and procedures 

established by the department of administration and approved by the 

state budget agency. 

(c) The compensation and expenses of the commission members and 

the expenses of the commission shall be paid out of the general fund of 

the state. 


IC 25-34.1-2-5 Powers of commission 

Sec. 5. The commission may: 

(1) administer and enforce the provisions of this article; 

(2) adopt rules in accordance with IC 4-22-2 and prescribe forms for 

licenses, applications, principal broker certifications, and other 

documents which are necessary or appropriate for the administration 

and enforcement of this article; 

(3) issue, deny, suspend, and revoke licenses in accordance with 

this article, which licenses shall remain the property of the 

commission; 

(4) subject to IC 25-1-7, investigate complaints concerning licensees 

or persons the commission has reason to believe should be 

licensees, including complaints respecting failure to comply with this 

article or the rules, and, when appropriate, take action pursuant to 

IC 25-34.1-6; 

(5) bring actions, in the name of the state of Indiana, in an 

appropriate circuit court in order to enforce compliance with this 

article or the rules; 

(6) inspect the records of a licensee in accordance with rules and 

standards prescribed by the commission; 

(7) conduct, or designate a member or other representative to 

conduct, public hearings on any matter for which a hearing is 

required under this article and exercise all powers granted in IC 4- 

21.5; 

(8) adopt a seal containing the words "Indiana Real Estate 

Commission" and, through its executive director, certify copies and 

authenticate all acts of the commission; 

6 

(9) utilize counsel, consultants, and other persons who are 

necessary or appropriate to administer and enforce this article and 

the rules; 

(10) enter into contracts and authorize expenditures that are 

necessary or appropriate, subject to IC 25-1-6, to administer and 

enforce this article and the rules; 

(11) maintain the commission's office, files, records, and property in 

the city of Indianapolis; 

(12) grant, deny, suspend, and revoke approval of examinations and 

courses of study as provided in IC 25-34.1-5; 

(13) provide for the filing and approval of surety bonds which are 

required by IC 25-34.1-5; 

(14) adopt rules in accordance with IC 4-22-2 necessary for the 

administration of the investigative fund established under IC 25-34.1- 

8-7.5; and 

(15) exercise other specific powers conferred upon the commission 

by this article. 


P.L.222, SEC.260; P.L.7-1987, SEC.129; P.L.145-2003, SEC.8. 

IC 25-34.1-2-5.1 Standards for competent practice; rules 

Sec. 5.1. The commission shall adopt rules establishing standards for 

the competent practice of the various occupations regulated in this 

article. 


IC 25-34.1-2-6 Repealed 

(Repealed by P.L.57-2007, SEC.9.) 

IC 25-34.1-2-7 Report of funds; deposit; payment of expenses; fee 

for investigation fund 

Sec. 6.5 (a) Except as provided in subsection (b), all funds collected 

under this article shall, at the end of each month, be reported to the 

auditor of state and deposited with the treasurer of state for deposit in the 

general fund. All expenses incurred in the administration of this article 

shall be paid from the general fund. 

(b) The commission shall establish a fee of not more than twenty 

dollars ($20) for real estate brokers and salespersons to provide funds 

for the purpose of administering and enforcing the provisions of this 

article, including investigating and taking enforcement action against real 

estate fraud and real estate appraisal fraud. All funds collected under this 

subsection shall be deposited in the investigative fund established by 

IC 25-34.1-8-7.5. 

As added by P.L.57-2007, SEC.2. 


Chapter 3. Licensing 

IC 25-34.1-3-1 Registration or license requirements; fees or charges 

Sec. 1. Any agency or political subdivision of the state other than the 

commission may not impose any registration or license requirement or 

any license or employment fee or charge on licensees on account of 

activities defined in IC 25-34.1. 


IC 25-34.1-3-2 Transactions without license; prohibition; exemption 

Sec. 2. (a) Except as provided in: 

(1) subsection (b); 

(2) section 8(i) of this chapter; and 

(3) section 11 of this chapter; 

no person shall, for consideration, sell, buy, trade, exchange, option, 

lease, rent, manage, list, or appraise real estate or negotiate or offer to

perform any of those acts in Indiana or with respect to real estate 

situated in Indiana, without a license. 

(b) This article does not apply to: 

(1) acts of an attorney which constitute the practice of law; 

(2) performance by a public official of acts authorized by law; 

(3) acts of a receiver, executor, administrator, commissioner, trustee, 

or guardian, respecting real estate owned or leased by the person 

represented, performed pursuant to court order or a will; 

(4) rental, for periods of less than thirty (30) days, of rooms, lodging, 

or other accommodations, by any commercial hotel, motel, tourist 

facility, or similar establishment which regularly furnishes such 

accommodations for consideration; 

(5) rental of residential apartment units by an individual employed or 

supervised by a licensed broker; 

(6) rental of apartment units which are owned and managed by a 

person whose only activities regulated by this article are in relation to 

a maximum of twelve (12) apartment units which are located on a 

single parcel of real estate or on contiguous parcels of real estate; 

(7) referral of real estate business by a broker, salesperson, or 

referral company which is licensed under the laws of another state, 

to or from brokers and salespersons licensed by this state; 

(8) acts performed by a person in relation to real estate owned by 

that person unless that person is licensed under this article, in which 

case the article does apply to him; 

(9) acts performed by a regular, full-time, salaried employee of a 

person in relation to real estate owned or leased by that person 

unless the employee is licensed under this article, in which case the 

article does apply to him; 

(10) conduct of a sale at public auction by a licensed auctioneer 

pursuant to IC 25-6.1; 

(11) sale, lease, or other transfer of interests in cemetery lots; and 

(12) acts of a broker or salesperson, who is licensed under the laws 

of another state, which are performed pursuant to, and under 

restrictions provided by, written permission that is granted by the 

commission in its sole discretion, except that such a person shall 

comply with the requirements of section 5(c) of this chapter. 




(Repealed by Acts 1982, P.L.156, SEC.4.) 

IC 25-34.1-3-3.1 Requirements for salesperson's license 

Sec. 3.1. (a) To obtain a salesperson license, an individual must: 

(1) be at least eighteen (18) years of age before applying for a 

license and must not have a conviction for: 

(A) an act that would constitute a ground for disciplinary sanction 

under IC 25-1-11; 

(B) a crime that has a direct bearing on the individual's ability to 

practice competently; or 

(C) a crime that indicates the individual has the propensity to 

endanger the public; 

(2) have successfully completed courses in the principles, practices, 

and law of real estate, totaling eight (8) semester credit hours, or 

their equivalent, as a student at an accredited college or university or 

have successfully completed an approved salesperson course as 

provided in IC 25-34.1-5-5(a); 

(3) apply for a license by submitting the fee prescribed by the 

commission and an application containing the name, address, and 

age of the applicant, the name under which the applicant intends to 

conduct business, the principal broker's address where the business 

is to be conducted, proof of compliance with subdivision (2), and any 

other information the commission requires; 

(4) pass a written examination prepared and administered by the 

commission or its duly appointed agent; and 

(5) submit not more than one (1) year after passing the written 

examination under subdivision (4) a sworn certification of a principal 

broker that the principal broker intends to associate with the 

applicant and maintain that association until notice of termination of 

the association is given to the commission. 

(b) Upon the applicant's compliance with the requirements of 

subsection (a), the commission shall: 

(1) issue a wall certificate in the name of the salesperson to the 

principal broker who certified the applicant's association with the 

principal broker; and 

(2) issue to the salesperson a pocket identification card which 

certifies that the salesperson is licensed and indicates the expiration 

date of the license and the name of the principal broker. 

(c) A salesperson shall: 

(1) act under the auspices of the principal broker responsible for that 

salesperson's conduct under this article; 

(2) be associated with only one (1) principal broker; 

(3) maintain evidence of licensure in the office, branch office, or 

sales outlet of the principal broker; 

(4) advertise only in the name of the principal broker, with the 

principal broker's name in letters of advertising larger than that of the 

salesperson's name; and 

(5) not maintain any real estate office apart from that office provided 

by the principal broker. 

(d) Upon termination of a salesperson's association with a principal 

broker, the salesperson's license shall be returned to the commission 

within five (5) business days. The commission shall reissue the license to 

any principal broker whose certification, as prescribed in subsection 

(a)(5), is filed with the commission, and the commission shall issue a new 

identification card to the salesperson reflecting that change. 

(e) Unless a license is renewed, a salesperson license expires on a 

date specified by the licensing agency under IC 25-1-6-4 and expires 

biennially after the initial expiration date. An applicant for renewal shall 

submit an application in the manner prescribed by the board and pay the 

renewal fee established by the board under IC 25-1-8-2 on or before the 

renewal date specified by the licensing agency. If the holder of a license 

does not renew the license by the date specified by the licensing agency, 

the license expires and becomes invalid without the board taking any 

action. 

(f) If the holder of a license under this section fails to renew the license 

on or before the date specified by the licensing agency, the license may 

be reinstated by the commission if the holder of the license, not later than 

three (3) years after the expiration of the license, meets the requirements 

of IC 25-1-8-6(c). 

(g) If a license under this section has been expired for more than three 

(3) years, the license may be reinstated by the commission if the holder 

meets the requirements for reinstatement under IC 25-1-8-6(d). 

(h) A salesperson license may be issued to an individual who is not yet 

associated with a principal broker but who otherwise meets the 

requirements of subsection (a). A license issued under this subsection 

shall be held by the commission in an unassigned status until the date 

the individual submits the certification of a principal broker required by 

subsection (a)(5). If the individual does not submit the application for 

licensure within one (1) year after passing the commission examination, 

the commission shall void the application and may not issue a license to 

that applicant unless the applicant again complies with the requirements 

of subsection (a)(4) through (a)(5). 

(i) If an individual holding a salesperson license is not associated with 

a principal broker for two (2) successive renewal periods, the commission 

shall notify the individual in writing that the individual's license will 

become void if the individual does not associate with a principal broker 

7

within thirty (30) days from the date the notification is mailed. A void 

license may not be renewed. 


SEC.2; P.L.214-1993, SEC.82; P.L.128-1994, SEC.2; P.L.236-1995, 


SEC.71; P.L.105-2008, SEC.62. 



IC 25-34.1-3-4.1 Requirements for broker's license 

Sec. 4.1. (a) To obtain a broker license, an individual must: 

(1) be at least eighteen (18) years of age before applying for a 

license and must not have a conviction for: 

(A) an act that would constitute a ground for disciplinary sanction 

under IC 25-1-11; 

(B) a crime that has a direct bearing on the individual's ability to 


(C) a crime that indicates the individual has the propensity to 

endanger the public; 

(2) have satisfied section 3.1(a)(2) of this chapter and have had 

continuous active experience for one (1) year immediately preceding 

the application as a licensed salesperson in Indiana. However, this 

one (1) year experience requirement may be waived by the 

commission upon a finding of equivalent experience; 

(3) have successfully completed an approved broker course of study 

as prescribed in IC 25-34.1-5-5(b); 

(4) apply for a license by submitting the application fee prescribed by 

the commission and an application specifying the name, address, 

and age of the applicant, the name under which the applicant intends 

to conduct business, the address where the business is to be 

conducted, proof of compliance with subdivisions (2) and (3), and 

any other information the commission requires; 

(5) pass a written examination prepared and administered by the 

commission or its duly appointed agent; and 

(6) within one (1) year after passing the commission examination, 

submit the license fee established by the commission under IC 25-1- 

8-2. If an individual applicant fails to file a timely license fee, the 

commission shall void the application and may not issue a license to 

that applicant unless that applicant again complies with the 

requirements of subdivisions (4) and (5) and this subdivision. 

(b) To obtain a broker license, a partnership must: 

(1) have as partners only individuals who are licensed brokers; 

(2) have at least one (1) partner who: 

(A) is a resident of Indiana; or 

(B) is a principal broker under IC 25-34.1-4-3(b); 

(3) cause each employee of the partnership who acts as a broker or 

salesperson to be licensed; and 

(4) submit the license fee established by the commission under 

IC 25-1-8-2 and an application setting forth the name and residence 

address of each partner and the information prescribed in subsection 

(a)(4). 

(c) To obtain a broker license, a corporation must: 

(1) have a licensed broker: 

(A) residing in Indiana who is either an officer of the corporation or, 

if no officer resides in Indiana, the highest ranking corporate 

employee in Indiana with authority to bind the corporation in real 

estate transactions; or 

(B) who is a principal broker under IC 25-34.1-4-3(b); 

(2) cause each employee of the corporation who acts as a broker or 

salesperson to be licensed; and 


IC 25-1-8-2, an application setting forth the name and residence 

address of each officer and the information prescribed in subsection 

8 

(a)(4), a copy of the certificate of incorporation, and a certificate of 

good standing of the corporation issued by the secretary of state. 

(d) To obtain a broker license, a limited liability company must: 

(1) if a member-managed limited liability company: 

(A) have as members only individuals who are licensed brokers; 

and 

(B) have at least one (1) member who is: 

(i) a resident of Indiana; or 

(ii) a principal broker under IC 25-34.1-4-3(b); 

(2) if a manager-managed limited liability company, have a licensed 

broker: 

(A) residing in Indiana who is either a manager of the company or, 

if no manager resides in Indiana, the highest ranking company 

officer or employee in Indiana with authority to bind the company 

in real estate transactions; or 

(B) who is a principal broker under IC 25-34.1-4-3(b); 

(3) cause each employee of the limited liability company who acts as 

a broker or salesperson to be licensed; and 


IC 25-1-8-2 and an application setting forth the information 

prescribed in subsection (a)(4), together with: 

(A) if a member-managed company, the name and residence 

address of each member; or 

(B) if a manager-managed company, the name and residence 

address of each manager, or of each officer if the company has 

officers. 

(e) Licenses granted to partnerships, corporations, and limited liability 

companies are issued, expire, are renewed, and are effective on the 

same terms as licenses granted to individual brokers, except as provided 

in subsection (h), and except that expiration or revocation of the license 

of: 

(1) any partner in a partnership or all individuals in a corporation 

satisfying subsection (c)(1); or 

(2) a member in a member-managed limited liability company or all 

individuals in a manager-managed limited liability company satisfying 

subsection (d)(2); 

terminates the license of that partnership, corporation, or limited liability 

company. 

(f) Upon the applicant's compliance with the requirements of 

subsection (a), (b), or (c), the commission shall issue the applicant a 

broker license and an identification card which certifies the issuance of 

the license and indicates the expiration date of the license. The license 

shall be displayed at the broker's place of business. 

(g) Unless the license is renewed, a broker license expires, for 

individuals, on a date specified by the licensing agency under IC 25-1-6-4 

and expires biennially after the initial expiration date. An applicant for 

renewal shall submit an application in the manner prescribed by the 

board and pay the renewal fee established by the commission under 

IC 25-1-8-2 on or before the renewal date specified by the licensing 

agency. If the holder of a license does not renew the license by the date 

specified by the licensing agency, the license expires and becomes 

invalid without the board taking any action. 

(h) If the holder of a license under this section fails to renew the license 

on or before the date specified by the licensing agency, the license may 

be reinstated by the commission if the holder of the license, not later than 

three (3) years after the expiration of the license, meets the requirements 

of IC 25-1-8-6(c). 

(i) If a license under this section has been expired for more than three 

(3) years, the license may be reinstated by the commission if the holder 

meets the requirements for reinstatement under IC 25-1-8-6(d). 

(j) A partnership, corporation, or limited liability company may not be a 

broker-salesperson except as authorized in IC 23-1.5. An individual 

broker who associates as a broker-salesperson with a principal broker 

shall immediately notify the commission of the name and business

address of the principal broker and of any changes of principal broker 

that may occur. The commission shall then change the address of the 

broker-salesperson on its records to that of the principal broker. 





SEC.72; P.L.105-2008, SEC.63. 

IC 25-34.1-3-5 Licensing of nonresident; consent to service of 

process; waiver 

Sec. 5. (a) A resident of another state, meeting the requirements of this 

chapter, may be licensed. 

(b) A nonresident salesperson or broker shall file with the commission 

a written consent that any action arising out of the conduct of the 

licensee's business in Indiana may be commenced in any county of this 

state in which the cause of action accrues. The consent shall provide that 

service of process may be made upon the commission, as agent for the 

nonresident licensee, and that service in accordance with the Indiana 

Rules of Trial Procedure subjects the licensee to the jurisdiction of the 

courts in that county. 

(c) The requirements of this section may be waived for individuals of or 

moving from other jurisdictions if the following requirements are met: 

(1) The jurisdiction grants the same privilege to the licensees of this 

state. 

(2) The individual is licensed in that jurisdiction. 

(3) The licensing requirements of that jurisdiction are substantially 

similar to the requirements of this chapter. 

(4) The applicant states that the applicant has studied, is familiar 

with, and will abide by the statutes and rules of this state. 


SEC.4; P.L.64-2004, SEC.19. 

IC 25-34.1-3-6 Change of name, business address, or association of 

licensee or principal broker 

Sec. 6. Each licensee and each licensee's principal broker, if any, shall 

notify the commission immediately of any change of name, name under 

which the licensee transacts business, business address, or association. 




IC 25-34.1-3-8 Real estate appraiser licensure and certification 

program; necessity for licensure or certification 

Sec. 8. (a) This section does not preclude a person who: 

(1) is not licensed or certified as a real estate appraiser under this 

section; and 

(2) is licensed as a broker under this article; 

from appraising real estate in Indiana for compensation. 

(b) As used in this section, "federal act" refers to Title XI of the 

Financial Institutions Reform, Recovery, and Enforcement Act (12 U.S.C. 

3331 through 3351). 

(c) The commission shall adopt rules to establish a real estate 

appraiser licensure and certification program to be administered by the 

board. 

(d) The commission may not adopt rules under this section except 

upon the action and written recommendations of the board under IC 25- 

34.1-8-6.5. 

(e) The real estate appraiser licensure and certification program 

established by the commission under this section must meet the 

requirements of: 

(1) the federal act; 

(2) any federal regulations adopted under the federal act; and 

9 

(3) any other requirements established by the commission as 

recommended by the board, including requirements for education, 

experience, examination, reciprocity, and temporary practice. 

(f) The real estate appraiser licensure and certification requirements 

established by the commission under this section must require a person 

to meet the standards for real estate appraiser certification and licensure 

established: 

(1) under the federal act; 

(2) by federal regulations; and 

(3) under any other requirements established by the commission as 

recommended by the board, including requirements for education, 

experience, examination, reciprocity, and temporary practice. 

(g) The commission may require continuing education as a condition of 

renewal for real estate appraiser licensure and certification. 

(h) The following are not required to be a licensed or certified real 

estate appraiser to perform the requirements of IC 6-1.1-4: 

(1) A county assessor. 

(2) A township assessor. 

(3) An employee of a county or township assessor. 

(i) Notwithstanding IC 25-34.1-3-2(a): 

(1) only a person who receives a license or certificate issued under 

the real estate appraiser licensure and certification program 

established under this section may appraise real estate involved in 

transactions governed by: 

(A) the federal act; and 

(B) any regulations adopted under the federal act; 

as determined under rules adopted by the commission, as 

recommended by the board; and 

(2) a person who receives a license or certificate issued under the 

real estate appraiser licensure and certification program established 

under this section may appraise real estate not involved in 

transactions governed by: 

(A) the federal act; and 

(B) any regulations adopted under the federal act; 

as determined under rules adopted by the commission, as 

recommended by the board. 

As added by P.L.186-1990, SEC.12. Amended by P.L.183-1991, SEC.7; 

P.L.57-2007, SEC.3; P.L.146, SEC.530. 



IC 25-34.1-3-9.5 Fees; real estate appraiser licensure and 

certification program 

Sec. 9.5. (a) The commission shall establish fees under IC 25-1-8-2 to 

implement section 8 of this chapter. 

(b) Notwithstanding IC 25-1-8-2, a fee established under IC 25-1-8-2 to 

implement section 8 of this chapter may not be less than fifty dollars 

($50). 

(c) The commission shall establish fees to provide funding for the 

investigative fund established by IC 25-34.1-8-7.5. The fees under this 

subsection may not be more than twenty dollars ($20). 

(d) The board may collect a fee required by federal law and transmit 

the fees to the federal government as required by federal law. 

(e) A fee described in subsection (a) is in addition to any fees required 

by federal law. 


IC 25-34.1-3-10 Inactive license requirements; continuing 

education; reactivation requirements 

Sec. 10. (a) A salesperson licensed under section 3.1 of this chapter or 

a broker licensed under section 4.1 of this chapter may apply for and 

receive an inactive license from the commission.

(b) An individual may not be granted an inactive license without the 

approval of the commission if a disciplinary or suspension hearing is 

pending against the individual. 

(c) An individual with an inactive license: 

(1) may not perform an act that requires a salesperson or broker's 

license; 

(2) is not required to fulfill the continuing education requirements 

under IC 25-34.1-9; 

(3) is required to pay any fees that a licensee is required to pay; and 

(4) must fulfill the requirements under IC 25-34.1-9-11 for the current 

licensing period before applying for reactivation of the individual's 

license. 

(d) Notwithstanding IC 25-34.1-9-11(2), the commission may adopt 

rules under IC 4-22-2 establishing continuing education requirements for 

individuals who have reactivated a license with less than twelve (12) 

months remaining in the licensing period. 

As added by P.L.120-1992, SEC.1. Amended by P.L.157-2006, SEC.73. 

IC 25-34.1-3-11 Acts permitted by unlicensed out-of-state 

commercial broker; written consent 

Sec. 11. (a) An out-of-state commercial broker, for a fee, commission, 

or other valuable consideration, or in expectation, or upon the promise of 

receiving or collecting a fee, commission, or other valuable consideration, 

may perform acts with respect to commercial real estate that require a 

license under this article without a license under this article, if the out-ofstate 

commercial broker does all of the following: 

(1) Works in cooperation with a broker who holds a valid license 

issued under this article. 

(2) Enters into a written agreement with the broker described in 

subdivision (1) that includes the terms of cooperation and 

compensation and a statement that the out-of-state commercial 

broker and the broker's agents will comply with the laws of this state. 

(3) Furnishes the broker described in subdivision (1) with a copy of 

the out-of-state commercial broker's current certificate of good 

standing or other proof of a license in good standing from a 

jurisdiction where the out-of-state commercial broker maintains a 

valid real estate license. 

(4) Files an irrevocable written consent with the commission that 

legal actions arising out of the conduct of the out-of-state commercial 

broker or the broker's agents may be commenced against the out-ofstate 

commercial broker in a court with jurisdiction in a county in 

Indiana in which the cause of action accrues. 

(5) Advertises in compliance with state law and includes the name of 

the broker described in subdivision (1) in all advertising. 

(6) Deposits all escrow funds, security deposits, and other money 

received by either the out-of-state commercial broker or the broker 

described in subdivision (1) in a trust account maintained by the 

broker described in subdivision (1). 

(7) Deposits all documentation required by this section and records 

and documents related to the transaction with the broker described 

in subdivision (1). 

(b) The broker described in subsection (a)(1) shall retain the 

documentation that is provided by the out-of-state commercial broker as 

required under this section, and the records and documents related to a 

transaction, for at least five (5) years. 

(c) An out-of-state commercial salesperson may perform acts with 

respect to commercial real estate that require a salesperson to be 

licensed under this article without a license under this article if the out-ofstate 

commercial salesperson meets all of the following requirements: 

(1) The out-of-state commercial salesperson: 

(A) is licensed with and works under the direct supervision of the 

out-of-state commercial broker; 

(B) provides the broker described in subsection (a)(1) with a copy 

of the out-of-state commercial salesperson's current certificate of 

10 

good standing or other proof of a license in good standing from the 

jurisdiction where the out-of-state commercial salesperson 

maintains a valid real estate license in connection with the out-ofstate 

commercial broker; and 

(C) collects money, including: 

(i) commissions; 

(ii) deposits; 

(iii) payments; 

(iv) rentals; or 

(v) escrow funds; 

only in the name of and with the consent of the out-of-state 

commercial broker under whom the out-of-state commercial 

salesperson is licensed. 

(2) The out-of-state commercial broker described in subdivision 

(1)(A) meets all of the requirements of subsection (a). 

(d) A person licensed in a jurisdiction where there is not a legal 

distinction between a real estate broker license and a real estate 

salesperson license must meet the requirements of subsection (a) before 

engaging in an act that requires a license under this article. 

(e) An out-of-state commercial broker or salesperson acting under this 

section shall file a written consent as provided in section 5(b) of this 

chapter. 


IC 25-34.1-3-12 Criminal convictions 

Sec. 12. A licensee who is convicted of a crime (as defined in IC 33- 

23-1-4) shall send a copy of the: 

(1) complaint or other information that describes the crime; and 

(2) judgment of conviction; 

to the commission not more than thirty (30) days after the date of the 

conviction. 



Chapter 4. Principal Brokers 

IC 25-34.1-4-1 Responsibility for actions of associated 

salespersons and broker salespersons; maintenance of two or more 

separate offices; notice 

Sec. 1. A principal broker is responsible under this article for the 

actions of any associated salesperson and broker-salesperson. Any 

principal broker who maintains two (2) or more separate offices for 

associated licensees shall notify the commission of the name and 

address of the broker who manages each office. 


IC 25-34.1-4-2 Partnership, corporate, or limited liability company 

broker to act only as principal broker; designation of responsible 

licensed individual broker 

Sec. 2. Except as provided in IC 23-1.5, a partnership broker, 

corporate broker, or limited liability company broker may act only as a 

principal broker and shall designate to the commission a licensed 

individual broker, who is a partner or a corporate representative 

satisfying IC 25-34.1-3-4.1(c)(1) or a member-managed limited liability 

company member or a manager-managed limited liability company 

representative satisfying IC 25-34.1-3-4.1(d)(2), to be primarily 

responsible to the commission for its actions. 


SEC.4; P.L.229-1995, SEC.7.

IC 25-34.1-4-3 Residency requirement for principal brokers; certain 

nonresidents may be principal brokers 

Sec. 3. (a) Except as provided in subsection (b), each individual who is 

a principal broker or is designated by a partnership, corporation, or a 

limited liability company pursuant to section 2 of this chapter shall be a 

resident of Indiana. 

(b) A nonresident: 

(1) individual broker; or 

(2) individual designated by a partnership, corporation, or limited 

liability company under section 2 of this chapter; 

may be a principal broker if all the licensees affiliated with the broker, 

partnership, corporation, or limited liability company are not residents of 

Indiana. 


SEC.5; P.L.64-2004, SEC.21. 

IC 25-34.1-4-4 Independent contractor relationship 

Sec. 4. Notwithstanding IC 23-1.5, the association of a salesperson or 

broker with a principal broker, as provided by this article, creates an 

independent contractor relationship unless otherwise specified by a 

written contract entered into by the principal broker and the associated 

salesperson or broker. 


SEC.8. 

IC 25-34.1-4-5 Trust accounts 

Sec. 5. (a) Each principal broker: 

(1) shall keep in one (1) or more trust accounts (interest or 

noninterest bearing) all funds belonging to others that come into the 

possession of the principal broker or of any associated salesperson 

or broker-salesperson; and 

(2) shall clearly identify any account containing those funds as a trust 

account. The trust accounts shall contain all earnest money 

deposits, funds held for closing escrows, sale proceeds not yet 

disbursed, and all other funds belonging to others. 

(b) The principal broker shall not use any trust account for the deposit 

of any personal funds or other business funds and shall keep a detailed 

record of the funds and any interest accrued in each trust account that 

identifies the amount of funds held for each beneficiary. Any interest 

earned shall be held for the beneficiary. 

(c) Upon the death or termination of a principal broker or the expiration 

or revocation of the principal broker's license, the commission shall take 

custody of each trust account and may appoint a successor trustee to 

protect and distribute the proceeds of that account. 


SEC.5. 

IC 25-34.1-4-6 Death of individual principal broker or termination of 

partnership principal broker by death of partner 

Sec. 6. (a) In the event of the death of an individual principal broker or 

the termination of a partnership principal broker by the death of a partner, 

a salesperson formerly associated with that principal broker may continue 

to carry out business contracted for before the death or termination of the 

principal broker, for a maximum period of ninety (90) days after the death 

or termination. During that period, the salesperson shall maintain a trust 

account as provided in section 5 of this chapter. However, until 

associating with another principal broker the salesperson may not 

undertake any new business. 

(b) Upon associating with a new principal broker, the salesperson may 

conduct on behalf of the deceased or terminated principal broker only 

that business which is necessary to complete obligations assumed while 

associated with that principal broker. All other acts performed by the 

salesperson shall be performed in association with the new principal 

broker. 

11 

(c) Each broker-salesperson formerly associated with the deceased or 

terminated principal broker becomes, upon the death or 

termination of the principal broker, a principal broker until the broker 

elects to act as a broker-salesperson for another principal broker. 

(d) This section applies only to matters of licensing and responsibility 

under this article and does not affect the transfer of the deceased 

principal broker's property interests as provided by IC 29 and other laws 

of succession. 



Chapter 5. Educational Courses 

IC 25-34.1-5-1 Approval by commission 

Sec. 1. No person shall conduct, solicit or accept student enrollment for 

a broker or salesperson course as prescribed in this chapter without 

approval of the course by the commission. 


IC 25-34.1-5-2 Application for approval 

Sec. 2. To obtain course approval, a person must apply to the 

commission by submitting a bond in the amount of ten thousand dollars 

($10,000) and an application which includes a copy of the accreditation 

certificate issued by the appropriate accreditation body, if any, a detailed 

teaching syllabus, a proposed certificate to be issued to students who 

successfully complete the course, and other information and documents 

which may be required by the commission. If the course is to be 

conducted by a corporation, the application shall also include the names 

and residence addresses of all directors and officers, a copy of the 

certificate of incorporation, and a certificate of good standing of the 

corporation issued by the secretary of state of Indiana. 


IC 25-34.1-5-3 Bond; obligee; requirements; liability; continuity; 

cancellation 

Sec. 3. (a) The commission shall be the obligee under the bond. 

(b) The bond shall be: 

(1) executed by the person seeking course approval and by a 

corporate surety, licensed to do business in the state, as surety; 

(2) in such form and with such terms and conditions as the 

commission may require; 

(3) conditioned upon faithful compliance with all requirements of an 

approved course as provided by this article and the commission's 

regulations; and 

(4) effective from its effective date and continue in effect until 

cancelled. 

The total and aggregate liability of the surety on a bond is limited to the 

amount specified in the bond and the continuous nature of the bond may 

in no event be construed as allowing the liability of the surety under a 

bond to accumulate for each successive approval period during which 

the bond is in force. 

(c) To provide continuous bonding of the school's activities, a school 

providing an approved course may not cancel a bond without the 

commission's prior written approval of cancellation and approval of a 

substitute bond. 

(d) The surety on a bond may cancel a bond filed under this article only 

after ninety (90) days from the date the surety mails a notice of intent to 

cancel, by registered or certified mail with return receipt requested, to the 

commission and to the school. 

(e) To provide continuous bond coverage of the school's activities, the 

school shall give written notice to the commission, not later than thirty

(30) days prior to the date upon which a bond cancellation becomes 

effective, that a new bond has been obtained. 


IC 25-34.1-5-4 Grounds for approval of broker or salesperson 

course 

Sec. 4. (a) To obtain approval of a broker or salesperson course, a 

school shall: 

(1) provide the curriculum prescribed in section 5 of this chapter; 

(2) have no more than thirty-five (35) students per instructor per 

classroom; 

(3) provide adequate educational facilities and supportive personnel 

as is necessary to implement the purpose of this article; 

(4) schedule not more than the maximum number of hours of 

instruction established by the commission in any twenty-four (24) 

hour period; 

(5) administer two (2) written examinations during the broker course 

and three (3) written examinations during the salesperson course 

which are approved, and passing scores established, by the 

commission; 

(6) within fourteen (14) days of the end of each course, submit to the 

commission the names and addresses of those students who 

successfully complete the course; 

(7) maintain records of students who successfully complete and pass 

the course of study for a minimum of five (5) years or, in the event 

the school should cease operation, the owner shall provide a 

custodian acceptable to the commission to keep those records and 

provide copies to students at the fee in effect when the school 

ceases operation; and 

(8) meet any other standards the commission may establish by 

regulation. 

(b) Any instruction conducted in a broker or salesperson office does 

not apply to the minimum hour requirements of section 5 of this chapter. 


IC 25-34.1-5-5 Curriculum 

Sec. 5. (a) The required curriculum for salespersons shall consist of a 

total of at least forty (40) hours of instruction and shall include the 

following subjects: Indiana license law and professional standards, law of 

agency, contracts, interests in real property, evidence of title, deeds, 

legal property descriptions, mathematics, taxes, valuation of real 

property, financing, listing contracts and purchase agreements, 

settlement procedures, property management, government regulations, 

and planning and zoning. 

(b) The required curriculum for brokers shall consist of a total of at 

least twenty-four (24) hours of instruction and shall include the following 

subjects: Indiana license law and professional standards, law of agency, 

contracts, financing, settlement procedures, escrow responsibility, 

recordkeeping, government regulations, and appraising. 


IC 25-34.1-5-6 Commission's considerations; factors 

Sec. 6. In determining whether to grant approval of the curriculum, the 

commission shall consider, in addition to the requirements of sections 4 

and 5 of this chapter, the following factors: accreditation, administration, 

ownership, instructors' qualifications, director's qualifications, course 

records, textbooks and related materials, cost of tuition and materials, 

and other means of evaluation as the commission establishes by 

regulation. 


IC 25-34.1-5-7 Expiration of approval; renewal 

Sec. 7. The approval of courses expires on the thirty-first day of 

December of each calendar year. To obtain renewal of approval for the 

12 

ensuing calendar year, the school must submit to the commission by 

November 30 of the current year: 

(1) a letter requesting renewal; 

(2) an annual report; and 

(3) a bond in the amount of twenty percent (20%) of the previous 

year's total tuition, but in no event less than ten thousand dollars 

($10,000) or more than fifty thousand dollars ($50,000). 


IC 25-34.1-5-8 Inspection of records and facilities 

Sec. 8. Each school conducting an approved course shall allow the 

commission to inspect its records and facilities. Each school shall report 

any significant proposed change in curriculum, faculty, or facilities to the 

commission at least thirty (30) days before the change, if possible. No 

change is effective unless it is approved by the commission. 


IC 25-34.1-5-9 Denial, suspension, or revocation of approval 

Sec. 9. The commission may deny, suspend, or revoke approval of any 

course if it determines the school failed to comply with the standards 

established in this chapter and the commission's regulations. 


IC 25-34.1-5-10 Prohibited advertising 

Sec. 10. A school may not advertise that it or its course is endorsed, 

recommended, or accredited by the commission. 


IC 25-34.1-5-11 Additional fees for review class prohibited 

Sec. 11. Schools conducting approved courses may not charge an 

additional fee for any review class. 



Chapter 6. Enforcement 



IC 25-34.1-6-1.1 Repealed 


IC 25-34.1-6-2 Class B infraction; fines; cease and desist orders; 

injunctions; complaints; supplemental procedures 

Sec. 2. (a) A person who: 

(1) performs the acts of a salesperson without a salesperson license; 

(2) performs the acts of a broker without a broker license; or 

(3) conducts, or solicits or accepts enrollment of students for, a 

course as prescribed in IC 25-34.1-3 without course approval; 

commits a Class A infraction. Upon conviction for an offense under this 

section, the court shall add to any fine imposed, the amount of any fee or 

other compensation earned in the commission of the offense. Each 

transaction constitutes a separate offense. 

(b) In all actions for the collection of a fee or other compensation for 

performing acts regulated by this article, it must be alleged and proved 

that, at the time the cause of action arose, the party seeking relief was 

not in violation of this section. 

(c) The commission may issue a cease and desist order to prevent 

violations of this section. 

(1) If the commission determines that a person is violating this 

section, or is believed to be violating this section, the commission 

may issue an order to that person setting forth the time and place for

a hearing at which the affected person may appear and show cause 

as to why the challenged activities are not in violation of this section. 

(2) After an opportunity for hearing, if the commission determines 

that the person is violating this section, the commission shall issue a 

cease and desist order which shall describe the person and activities 

which are the subject of the order. 

(3) A cease and desist order issued under this section is enforceable 

in the circuit courts of this state. 

(d) The attorney general, the commission, or the prosecuting attorney 

of any county in which a violation occurs may maintain an action in the 

name of the state to enjoin a person from violating this section. 

(e) In charging any person in a complaint for an injunction or in 

affidavit, information, or indictment with the violation of the provisions of 

this section, it is sufficient, without averring any further or more particular 

facts, to charge that the person upon a certain day and in a certain 

county either acted as a real estate broker or salesperson not having a 

license or conducted, or solicited or accepted enrollment of students for, 

a broker or salesperson course without course approval. 

(f) Each enforcement procedure established in this section is 

supplemental to other enforcement procedures established in this 

section. 


SEC.84. 

IC 25-34.1-6-3 Criminal conviction; discipline 

Sec. 3. A licensee who is convicted of a crime that substantially relates 

to the practice of real estate may be disciplined under IC 25-1-11. A 

certified copy of a judgment of conviction from a court is presumptive 

evidence of a conviction for purposes of this section. 



Chapter 7. Real Estate Recovery Fund 

IC 25-34.1-7-1 Establishment of fund; administration; investments 

Sec. 1. (a) The real estate recovery fund is established for the purpose 

set out in this chapter. The fund shall be administered by the real estate 

commission. 

(b) The treasurer of state shall invest the money in the fund not 

currently needed to meet the obligations of the fund in the same manner 

as other public funds may be invested. Interest that accrues from these 

investments shall be deposited in the fund. 

(c) Money in the fund at the end of a state fiscal year does not revert to 

the state general fund, except as provided in section 2.1 of this chapter. 


IC 25-34.1-7-2 Surcharge; formula; assessment; application of 

section 

Sec. 2. (a) If the total amount in the real estate recovery fund (including 

principal and interest) is less than four hundred fifty thousand dollars 

($450,000) on June 30 in an odd-numbered year after the payment of all 

claims and expenses, the real estate commission shall assess a 

surcharge according to the following formula in order to maintain the fund 

at an approximate level of six hundred thousand dollars ($600,000): 

STEP ONE: Determine the amount remaining in the fund on June 30 

of the current year after all expenses and claims have been paid. 

STEP TWO: Subtract the amount determined under STEP ONE from 

six hundred thousand dollars ($600,000). 

STEP THREE: Determine the number of licensees who had licenses 

in effect on June 30 of the current year. 

STEP FOUR: Divide the number determined under STEP TWO by 

the number determined under STEP THREE. 

13 

(b) The real estate commission shall assess the surcharge described in 

subsection (a) against each licensee who: 

(1) receives an initial license; or 

(2) receives a renewal license. 

(c) The real estate commission shall assess the surcharge described in 

subsection (a) for the two (2) year period beginning on July 1 of the 

current year through June 30 of the next odd-numbered year. 

(d) The surcharge assessed under this section is in addition to any 

other fee under this article. 

(e) This section does not apply to a person who: 

(1) receives an initial license or certificate; or 

(2) receives a renewal license or certificate; 

under the real estate appraiser licensure and certification program 

established under IC 25-34.1-3-8. 


P.L.183-1991, SEC.9. 

IC 25-34.1-7-2.1 Reversion of excess funds 

Sec. 2.1. If the total amount in the real estate recovery fund (including 

principal and interest) exceeds seven hundred fifty thousand dollars 

($750,000) at the end of a state fiscal year after the payment of all claims 

and expenses, the amount in excess of seven hundred fifty thousand 

dollars ($750,000) reverts to the state general fund. 


IC 25-34.1-7-3 Interest on investments; payment of expenses 

Sec. 3. Any interest earned on investment of money in the real estate 

recovery fund shall be credited at least annually to the fund. No money 

may be appropriated from the general fund for payment of any expenses 

incurred under this chapter, and none of these expenses may be charged 

against the state. 


IC 25-34.1-7-4 Applications for order directing payment out of fund; 

amount of loss; limitation on recovery 

Sec. 4. (a) If any aggrieved person obtains a final judgment in any 

court against a licensee to recover damages for any act of: 

(1) embezzlement of money or property; or 

(2) unlawfully obtaining money or property by false pretenses, use of 

a device, trickery, or forgery; 

that results in an actual cash loss to the aggrieved person (as opposed to 

loss in market value), the person may, upon termination of all 

proceedings including appeals and proceedings supplemental to 

judgment for collection purposes, file a verified application in the court in 

which the judgment was entered for an order directing payment out of the 

real estate recovery fund of the amount of actual and direct loss in the 

transaction that remains unpaid upon the judgment. The amount of actual 

and direct loss may include court costs but may not include attorney's 

fees or punitive damages awarded. The amount that may be paid from 

the real estate recovery fund may not exceed twenty thousand dollars 

($20,000) per judgment and an aggregate lifetime limit of fifty thousand 

dollars ($50,000) with respect to any one (1) licensee. 

(b) This section applies only to a final judgment that awards damages 

for an act by the licensee described in subsections (a)(1) through (a)(2) 

that arises directly out of any transaction: 

(1) that occurred when the licensee was licensed; 

(2) for which a license was required under IC 25-34.1; and 

(3) that occurred after December 31, 1987. 

As added by P.L.255-1987, SEC.6.

IC 25-34.1-7-5 Claims against single licensee in excess of dollar 

limitation; distribution; joinder of claims; payment; insufficient 

funds 

Sec. 5. (a) If the payment in full of two (2) or more pending valid claims 

that have been filed by aggrieved persons against a single licensee 

would exceed the fifty thousand dollar ($50,000) limit set forth in section 

4 of this chapter, the fifty thousand dollars ($50,000) shall be distributed 

among the aggrieved persons in the ratio that their respective claims 

bear to the aggregate of all valid claims or in any other manner that a 

court of record may determine equitable. This money shall be distributed 

among the persons entitled to share in it without regard to the order of 

priority in which their respective judgments have been obtained or their 

claims have been filed. 

(b) Upon petition of the commission, the court may require all claimants 

and prospective claimants against one (1) licensee to be joined in one (1) 

action, to the end that the respective rights of all the claimants to the 

commission may be equitably adjudicated and settled. 

(c) On June 30 and December 31 of each year, the real estate 

commission shall identify each claim that the court orders to be paid 

during the six (6) month period that ended on that day. The commission 

shall pay the part of each claim that is so identified within fifteen (15) 

days after the end of the six (6) month period in which the claim is 

ordered paid. However, if the balance in the fund is insufficient to pay the 

full payable amount of each claim that is ordered to be paid during a six 

(6) month period, the commission shall pay a prorated portion of each 

claim that is ordered to be paid during the period. Any part of the payable 

amount of a claim left unpaid due to the prorating of payments under this 

subsection must be paid (subject to the fifty thousand dollar ($50,000) 

limit described in section 4 of this chapter) before the payment of claims 

ordered to be paid during the following six (6) month period. 


IC 25-34.1-7-6 Agent for service of process 

Sec. 6. Any broker or salesperson who is licensed or renews a license 

under this article after December 31, 1987, and upon whom personal 

service cannot be made with reasonable diligence shall be considered to 

have appointed the commission as the licensee's agent for service of 

process for purposes of actions filed under section 4 of this chapter for 

recovery from the real estate recovery fund. Service of process under 

this section shall be made as nearly as practicable in the manner 

prescribed by the Indiana Rules of Trial Procedure for service on 

corporations. 


IC 25-34.1-7-7 Limitation of actions; notice of commencement of 

action 

Sec. 7. An order for payment from the real estate recovery fund may 

not be issued unless the action to recover from the real estate recovery 

fund was commenced within one (1) year after the termination of all 

proceedings against the licensee for embezzlement of money or 

property, or unlawfully obtaining money or property by false pretenses, 

use of a device, trickery, or forgery, including appeals and proceedings 

supplemental to judgment. When any person commences an action for a 

judgment that may result in an order for payment from the fund, the 

person shall notify the commission in writing of the commencement of the 

action. 


IC 25-34.1-7-8 Commission as defendant; hearings; orders directing 

payment 

Sec. 8. When any person files an application for an order directing 

payment from the real estate recovery fund, the commission shall be 

made a party defendant to the proceedings. The court shall conduct a 

hearing on the application, and it may issue an order directing payment 

14 

out of the real estate recovery fund, as provided in section 9 of this 

chapter, subject to the limitation of section 4 of this chapter, if the court 

finds: 

(1) that there is no collusion between the judgment creditor and the 

judgment debtor; 

(2) that the judgment creditor is making application not more than 

one (1) year after the termination of all proceedings in connection 

with the judgment, including appeals and proceedings supplemental 

to judgment for collection purposes; 

(3) that the judgment creditor has caused to be issued a writ of 

execution on the judgment and the officer executing the writ has 

made a return showing that no personal or real property of the 

judgment debtor liable to be levied upon in satisfaction of the 

judgment could be found or that the amount realized on the sale 

under the execution was insufficient to satisfy the judgment; 

(4) that the judgment creditor has diligently pursued the creditor's 

remedies against all the judgment debtors and all other persons 

liable to the creditor in the transaction for which the creditor seeks 

recovery from the real estate recovery fund; 

(5) that the embezzlement of money or property, or the unlawfully 

obtaining of money or property by false pretenses, use of a device, 

trickery, or forgery, arose directly out of a transaction that occurred 

when the judgment debtor was licensed and acted in a capacity for 

which a license is required under this article and that the transaction 

occurred after December 31, 1987; and 

(6) that, in the event of a default judgment or a judgment entered 

upon stipulation of the parties, the judgment debtor's acts constituted 

embezzlement of money or property, or the unlawful obtaining of 

money or property by false pretenses, use of a device, trickery, or 

forgery. 


IC 25-34.1-7-9 Payment of claims 

Sec. 9. Upon a final order of the court directing that payment be made 

out of the real estate recovery fund, the commission shall, subject to 

sections 4 through 5 of this chapter, make the payment out of the real 

estate recovery fund as provided in section 5 of this chapter. 


IC 25-34.1-7-10 Suspension of judgment debtor's license; 

repayment of fund; interest 

Sec. 10. If the commission is required to make any payment from the 

real estate recovery fund in settlement of a claim or toward the 

satisfaction of a judgment under this chapter, the commission shall 

suspend the judgment debtor's license and, if the judgment debtor is 

licensed under IC 25-34.1-3-3.1, the license of the individual designated 

broker, under this article. The licensee is not eligible to be licensed again 

as either a broker or a salesperson until the licensee has repaid in full the 

amount paid from the real estate recovery fund with interest of twelve 

percent (12%) per annum. 


IC 25-34.1-7-11 Subrogation 

Sec. 11. When upon order of any court, the commission has caused 

payment to be made from the real estate recovery fund to a judgment 

creditor, the commission is subrogated to the rights of the judgment 

creditor with respect to the amount paid. 


IC 25-34.1-7-12 Expenditure of interest 

Sec. 12. Subject to the approval of the budget agency, the real estate 

commission may expend the interest earned by the real estate recovery 

fund for:

(1) information concerning the commission's activities and 

administrative rulings; 

(2) other educational information concerning the real estate industry; 


(3) expenses related to the continuing education program under 

IC 25-34.1-9. 


IC 25-34.1-7-13 Attorney general; assistance; expenses 

Sec. 13. (a) The office of the attorney general shall provide the staff 

assistance necessary to: 

(1) enable the real estate commission to perform its duties under this 

chapter; and 

(2) enforce this chapter. 

(b) Expenses incurred by the office of the attorney general under this 

section shall be paid from the real estate recovery fund. 



Chapter 8. Real Estate Appraiser Certification Board 

IC 25-34.1-8-1 Creation of board 

Sec. 1. The real estate appraiser licensure and certification board is 

created. 

As added by P.L.186-1990, SEC.14. Amended by P.L.183-1991, 

SEC.10. 

IC 25-34.1-8-2 Qualification of members; appointment 

Sec. 2. (a) The board consists of seven (7) members appointed by the 

governor as follows: 

(1) Five (5) members who are real estate appraisers: 

(A) who are licensed or certified under this article; 

(B) who have at least five (5) years experience as real estate 

appraisers; and 

(C) at least three (3) of whom are certified appraisers. 

(2) One (1) representative who represents lenders qualified to: 

(A) make Federal Housing Administration insured loans and 

Veterans Administration guaranteed loans; and 

(B) sell loans to the Federal National Mortgage Association and 

the Federal Home Loan Mortgage Corporation. 

(3) One (1) member who is not associated with the real estate 

business in any way other than as a consumer. 

(b) When making appointments under subsection (a), the governor 

shall consider the geographic areas represented on the board. 


SEC.11. 

IC 25-34.1-8-3 Term 

Sec. 3. Each board member serves for a term of four (4) years. 


IC 25-34.1-8-3.5 Officers 

Sec. 3.5. (a) The board shall annually elect one (1) of its members to 

be the chair and another member to be the vice chair. 

(b) A member of the board who serves as chair or vice chair serves 

until a successor is elected. 

(c) A member who serves as chair or vice chair may serve not more 

than two (2) consecutive terms in that capacity. 

(d) The chair shall preside at all of the board's meetings. 

(e) The vice chair shall: 

(1) preside at meetings in the absence of the chair; and 

(2) perform other duties as directed by the chair. 

15 


IC 25-34.1-8-4 Quorum 

Sec. 4. (a) The board must have a quorum to transact business. 

(b) Four (4) members of the board constitute a quorum. 


IC 25-34.1-8-5 Majority vote 

Sec. 5. The affirmative vote of four (4) members of the board is 

required for the board to take action. 




IC 25-34.1-8-6.5 Recommendations to commission; implementation 

and operation of program; fee; rules 

Sec. 6.5. The board shall submit recommendations to the commission 

concerning the following: 

(1) Implementation and operation of the real estate appraiser 

licensure and certification program under IC 25-34.1-3-8. 

(2) Rules governing real estate appraisers licensed and certified 

under IC 25-34.1-3-8. 

(3) Establishing a fee in an amount necessary to fund the 

investigative fund established by section 7.5 of this chapter but not 

more than twenty dollars ($20). 

(4) Rules governing the administration of the investigative fund 

established by section 7.5 of this chapter. 


IC 25-34.1-8-7 Approval of applications; issuance of licenses and 

certificates 

Sec. 7. The board shall do the following: 

(1) Approve and disapprove applications for licensure and 

certification. 

(2) Issue licenses and certificates. 


SEC.13. 

IC 25-34.1-8-7.5 Investigative fund; administration by attorney 

general and professional licensing agency 

Sec. 7.5. (a) The investigative fund is established to provide funds for 

administering and enforcing the provisions of this article, including 

investigating and taking enforcement action against real estate fraud and 

real estate appraisal fraud. The fund shall be administered by the 

attorney general and the professional licensing agency. 

(b) The expenses of administering the fund shall be paid from the 

money in the fund. The fund consists of money from a fee imposed upon 

licensed or certified appraisers and real estate brokers and salespersons 

under IC 25-34.1-2-7 and IC 25-34.1-3-9.5. 

(c) The treasurer of state shall invest the money in the fund not 

currently needed to meet the obligations of the fund in the same manner 

as other public money may be invested. 

(d) Except as otherwise provided in this subsection, money in the fund 

at the end of a state fiscal year does not revert to the state general fund. 

If the total amount in the investigative fund exceeds seven hundred fifty 

thousand dollars ($750,000) at the end of a state fiscal year after 

payment of all claims and expenses, the amount that exceeds seven 

hundred fifty thousand dollars ($750,000) reverts to the state general 

fund. 

(e) Money in the fund is continually appropriated for use by the 

attorney general and the licensing agency to administer and enforce the 

provisions of this article and to conduct investigations and take 

enforcement action against real estate and appraisal fraud under this

article. The attorney general shall receive five dollars ($5) of each fee 

collected under IC 25-34.1-2-7 and IC 25-34.1-3-9.5, and the licensing 

agency shall receive any amount that exceeds five dollars ($5) of each 

fee collected under IC 25-34.1-2-7 and IC 25-34.1-3-9.5. 


P.L.57-2007, SEC.6. 

IC 25-34.1-8-7.7 Memorandum of understanding 

Sec. 7.7. (a) The attorney general and the licensing agency shall enter 

into a memorandum of understanding to administer and enforce this 

article. 

(b) The attorney general and the licensing agency shall present the 

memorandum of understanding annually to the commission for review. 




IC 25-34.1-8-9 Per diem; travel and other expenses 

Sec. 9. Each member of the board who is not a state employee is 

entitled to the minimum salary per diem provided by IC 4-10-11-2.1(b). 

Each member of the board is entitled to reimbursement for travel 

expenses and other expenses actually incurred in connection with the 

member's duties, as provided in the state travel policies and procedures 

established by the department of administration and approved by the 

budget agency. 


IC 25-34.1-8-10 Qualification of applicants 

Sec. 10. (a) To be licensed or certified as a real estate appraiser, an 

individual must meet the following conditions: 

(1) Not have a conviction for any of the following: 

(A) An act that would constitute a ground for disciplinary sanction 

under IC 25-1-11. 

(B) A crime that has a direct bearing on the individual's ability to 

practice competently. 

(C) Fraud or material deception in the course of professional 

services or activities. 

(D) A crime that indicates the individual has the propensity to 

endanger the public. 

(2) Have satisfied the requirements established under IC 25-34.1-3- 

8(f). 

(b) After December 31, 2008, the board shall require each applicant for 

initial licensure or certification under this chapter to submit fingerprints for 

a national criminal history background check (as defined in IC 10-13-3- 

12) by the Federal Bureau of Investigation, for use by the board in 

determining whether the applicant should be denied licensure or 

certification under this chapter for any reason set forth in subsection 

(a)(1). The applicant shall pay any fees or costs associated with the 

fingerprints and background check required under this subsection. The 

board may not release the results of a background check described in 

this subsection to any private entity. 

(c) The board may request evidence of compliance with this section in 

accordance with subsection (d). Evidence of compliance with this section 

may include any of the following: 

(1) Subject to subsections (b) and (d)(2), criminal background 

checks, including a national criminal history background check (as 

defined in IC 10-13-3-12) by the Federal Bureau of Investigation. 

(2) Credit histories. 

(3) Other background checks considered necessary by the board. 

(d) The board may request evidence of compliance with this section at 

any of the following times: 

(1) The time of application for an initial license or certificate. 

(2) The time of renewal of a license or certificate. 

16 

(3) Any other time considered necessary by the board. 

(e) The commission, upon recommendation of the board, shall adopt 

rules under IC 4-22-2 to implement this section. 


SEC.85; P.L.182-1996, SEC.3; P.L.145-2008, SEC.30. 



IC 25-34.1-8-12 Real estate appraisal practice or education without 

license or certification; injunctions; enforcement 

Sec. 12. (a) A person who: 

(1) performs: 

(A) the acts of a licensed real estate appraiser without a license; or 

(B) the acts of a certified real estate appraiser without a certificate; 

or 

(2) conducts or solicits or accepts enrollment of students for a course 

without course approval as required by section 13 of this chapter; 

commits a Class B infraction. When a judgment is entered for an 

offense under this section, the court shall add to any fine imposed 

the amount of any fee or other compensation earned in the 

commission of the offense. Each transaction constitutes a separate 

offense. 

(b) In all actions for the collection of a fee or other compensation for 

performing acts regulated by this article, a party seeking relief must 

allege and prove that at the time the cause of action arose the party was 

not in violation of this section. 

(c) The attorney general, the board, or the prosecuting attorney of any 

county in which a violation occurs may maintain an action in the name of 

the state of Indiana to enjoin a person from violating this section. 

(d) In charging any person in a complaint for a judgment or an 

injunction for the violation of this section, it is sufficient, without averring 

any further or more particular facts, to charge that the person upon a 

certain day and in a certain county: 

(1) acted as: 

(A) a certified real estate appraiser without a certificate; or 

(B) a licensed real estate appraiser without a license; or 

(2) conducted, or solicited or accepted enrollment of students for a 

real estate appraiser course without course approval. 

(e) Each enforcement procedure established in this section is 

supplemental to other enforcement procedures established in this 

section. 

As added by P.L.183-1991, SEC.16. Amended by P.L.57-2007; SEC.7; 

P.L.3-2008, SEC.204. 

IC 25-34.1-8-13 Real estate appraiser courses; approval 

Sec. 13. (a) A person may not conduct, solicit, or accept student 

enrollment for a real estate appraiser course represented as satisfying 

the requirements of the board without approval of the course by the 

Appraiser Qualifications Board, under the regulatory oversight of the 

Appraisal Subcommittee established under Title XI of the Financial 

Institutions Reform, Recovery and Enforcement Act of 1989 (12 U.S.C. 

3331 et seq.). 




IC 25-34.1-8-15 Use of investigative fund 

Sec. 15. The office of the attorney general and the professional 

licensing agency may use the investigative fund established by section 

7.5 of this chapter to hire investigators and other employees to 

administer and enforce the provisions of this article and to investigate 

and prosecute real estate fraud and real estate appraisal fraud.



Chapter 9. Continuing Education 

IC 25-34.1-9-1 "Council" defined 

Sec. 1. As used in this chapter, "council" refers to the real estate 

education advisory council established by this chapter. 


IC 25-34.1-9-2 Real estate education advisory council; 

establishment 

Sec. 2. The real estate education advisory council is established. 


IC 25-34.1-9-3 Membership 

Sec. 3. (a) The council consists of the following members appointed by 

the commission: 

(1) Three (3) members who represent residential real estate sales 

practitioners. 

(2) Three (3) members who represent other segments and 

specialties of the real estate industry besides residential real estate 

sales practitioners. 

(3) One (1) member who represents real estate education. 

(b) The commission shall appoint members from different geographic 

areas of Indiana. Six (6) members of the council must be members of 

Indiana real estate trade organizations. 


IC 25-34.1-9-4 Term of office 

Sec. 4. Each member of the council shall be appointed by the 

commission for a two (2) year term. If a successor has not been 

appointed, the current member serves until a successor is appointed and 

qualified. 


IC 25-34.1-9-5 Vacancies 

Sec. 5. If a vacancy occurs on the council, the commission shall 

appoint an individual to serve the unexpired term of the previous member 

and until a successor is appointed and qualified. 


IC 25-34.1-9-6 Removal for cause 

Sec. 6. The commission may remove a member of the council for 

cause. 


IC 25-34.1-9-7 Chair and vice chair 

Sec. 7. The council shall elect from the council's membership a 

chairman and a vice chairman. 


IC 25-34.1-9-8 Meetings 

Sec. 8. The council shall meet upon the call of the chairman or at the 

request of the commission. The chairman shall establish the time and 

place of all meetings. 


IC 25-34.1-9-9 Implementation and courses under this chapter 

Sec. 9. The council shall make recommendations to the commission 

concerning the following: 

(1) Requirements for sponsors of courses under this chapter. 

17 

(2) Requirements for instructors to be used by sponsors in providing 

courses under this chapter. 

(3) Requirements for the curricula in providing courses under this 

chapter. 

(4) Rules to implement this chapter. 

(5) Other issues identified by the commission to implement this 

chapter. 


IC 25-34.1-9-10 Completion of approved education requirement; 

exception 

Sec. 10. Except for an individual who has been granted an inactive 

license under IC 25-34.1-3-10, an individual who is licensed as a real 

estate broker under IC 25-34.1-3-4.1 or a salesperson under IC 25-34.1- 

3-3.1 must complete the approved education requirement before the end 

of each renewal period. 


IC 25-34.1-9-11 Approved education requirement 

Sec. 11. (a) The approved education requirement is as follows: 

(1) At least six (6) hours in any of the following subjects as 

determined by the commission: 

(A) License and escrow law. 

(B) Anti-trust law. 

(C) Civil rights law. 

(D) Agency law. 

(E) Listing contracts and purchase agreements. 

(F) Ethics and professionals standards. 

(G) Settlement procedures. 

(H) Other courses approved by the commission. 

(2) At least ten (10) hours of course work in any of the following 

subjects as determined by the commission: 

(A) Appraising. 

(B) Property management. 

(C) Farm property management. 

(D) Commercial brokerage and leasing. 

(E) Financing. 

(F) Residential brokerage. 

(G) Land development. 

(H) Legislative issues affecting the real estate practice. 

(I) Other courses approved by the commission. 

(b) An attorney in good standing licensed to practice law in Indiana 

may satisfy the requirements of subsection (a) by completing the number 

of hours required by subsection (a) in continuing legal education courses 

in the subject matters listed in subsection (a). 


IC 25-34.1-9-12 Course sponsor; approval requirements 

Sec. 12. To obtain approval as a continuing education course sponsor, 

the sponsor must do the following: 

(1) Provide the commission information on courses, curriculum, and 

facilities as determined by the commission. 

(2) Limit the number of credit hours that may be offered in a twentyfour 

(24) hour period for the course to a number not more than the 

amount established by the commission by rule. 

(3) Provide each participant who successfully completes an 

approved course a certificate that contains the following: 

(A) The name of the participant. 

(B) The name, address, and signature of the sponsor. 

(C) The number of approved credit hours. 

(D) The date of the program. 

(E) Any other information required by the commission. 

(4) Pay a fee determined by the commission. 

(5) Meet any standard that the commission adopts by rule.


IC 25-34.1-9-13 Approved sponsor; records 

Sec. 13. A continuing education sponsor that has received approval 

under section 12 of this chapter must maintain records for five (5) years 

of the participants who successfully complete and pass the course. If the 

sponsor ceases operations, the owner shall place the records in the care 

of a custodian that is approved by the commission. 


IC 25-34.1-9-14 Expiration of sponsor approval; renewal 

requirements 

Sec. 14. (a) The approval for a sponsor for: 

(1) a salesperson's course expires December 31 each oddnumbered 

year; and 

(2) a broker's course expires December 31 each even-numbered 

year. 

(b) A sponsor must submit: 

(1) a letter requesting renewal of approval; and 

(2) the renewal fee; 

at least thirty (30) days before a sponsor's approval expires. 


IC 25-34.1-9-15 Inspection; approved sponsor records and facilities 

Sec. 15. The commission may inspect an approved sponsor's records 

and facilities. 


IC 25-34.1-9-16 Advertising sponsor or course 

Sec. 16. (a) A person may advertise that the sponsor or the sponsor's 

course is approved by the commission and fulfills the requirements of the 

commission. 

(b) A person may not advertise that the sponsor or the sponsor's 

course is required or recommended by the commission. 


IC 25-34.1-9-17 Renewal period; licensee exemption from 

continuing education requirement 

Sec. 17. A licensee who is initially licensed in the second year of a 

renewal period is exempt from the continuing education requirements 

under this chapter for that renewal period. 


IC 25-34.1-9-18 Application for renewal; certification requirements 

Sec. 18. An applicant for renewal must certify on the application that 

the applicant: 

(1) has complied with the continuing education requirements; 

(2) is exempt from the continuing education requirement because the 

individual has been licensed for less than one (1) year; or 

(3) has not complied with the continuing education requirements but 

is seeking a waiver under section 19 of this chapter. 


IC 25-34.1-9-19 Waiver conditions; continuing education 

requirement; prohibited activity 

Sec. 19. The commission may grant an applicant a waiver from the 

continuing education requirement for the renewal period if the applicant 

meets one (1) of the following conditions: 

(1) Was not able to fulfill the requirement due to a hardship that 

resulted from any of the following: 

(A) Service in the armed forces of the United States during a 

substantial part of the renewal period. 

(B) An incapacitating illness. 

(C) Other circumstances determined by the commission. 

18 

(2) Has certified on approved forms to the commission the following: 

(A) That the applicant has an active license but will not perform an 

act that requires a salesperson or broker's license. 

(B) That the applicant is affiliated with a principal broker for the sole 

purpose of making referrals to a licensed salesperson or broker. 

An individual granted a waiver under this subdivision may not perform an 

act that requires a salesperson or broker's license until the individual has 

fulfilled the same continuing education requirements needed to reactivate 

an inactive license under IC 25-34.1-3-10(c) and 25-34.1-3-10(d). 


IC 25-34.1-9-20 Renewal license; denial 

Sec. 20. Subject to IC 25-1-4, the commission may deny renewal of the 

license of a licensee that does not fulfill the requirements of this chapter. 


IC 25-34.1-9-21 Implementation of chapter 

Sec. 21. The commission may adopt rules under IC 4-22-2 necessary 

to implement this chapter. 



Chapter 10. Real Estate Agency Relationships 

IC 25-34.1-10-0.5 "Agency relationship" defined 

Sec. 0.5. As used in this chapter, "agency relationship" means a 

relationship in which a licensee represents a client in a real estate 

transaction. 


IC 25-34.1-10-1 "Broker" defined 

Sec. 1. As used in this chapter, "broker" means an individual or entity 

issued a broker's real estate license by the Indiana real estate 

commission. 








IC 25-34.1-10-5 "Client" defined 

Sec. 5. As used in this chapter, "client" means a person who has 

entered into an agency relationship with a licensee. 


IC 25-34.1-10-6 "Customer" defined 

Sec. 6. As used in this chapter, "customer" means a person who is 

provided services in the ordinary course of business by a licensee but 

who is not a client. 


IC 25-34.1-10-6.5 "In-house agency relationship" defined 

Sec. 6.5. As used in this chapter, "in-house agency relationship" 

means an agency relationship involving two (2) or more clients who are 

represented by different licensees within the same real estate firm. 


IC 25-34.1-10-6.8 "Licensee" defined 

Sec. 6.8. As used in this chapter, "licensee" means an individual or 

entity issued a salesperson's or broker's real estate license by the 

Indiana real estate commission. 


IC 25-34.1-10-7 "Limited agent" defined 

Sec. 7. As used in this chapter, "limited agent" means a licensee who, 

with the written and informed consent of all parties to a real estate 

transaction, represents both the seller and buyer or both the landlord and 

tenant and whose duties and responsibilities to a client are only those set 

forth in this chapter. 


IC 25-34.1-10-7.5 "Managing broker" defined 

Sec. 7.5. As used in this chapter, "managing broker" means a broker 

who manages a branch office or who acts on behalf of a principal broker. 


IC 25-34.1-10-7.8 "Principal broker" defined 

Sec. 7.8. As used in this chapter, "principal broker" means the 

individual broker (including the broker designated or representative of a 

partnership, corporation, or limited liability company) whom the Indiana 

real estate commission shall hold responsible for the actions of licensees 

who are affiliated with the individual broker. 


IC 25-34.1-10-8 "Real estate transaction" defined 

Sec. 8. As used in this chapter, "real estate transaction" means the 

sale or lease of any legal or equitable interest in real estate. 


IC 25-34.1-10-9 "Subagent" defined 

Sec. 9. As used in this chapter, "subagent" means a broker engaged to 

act for another broker in performing brokerage services for a client. 


IC 25-34.1-10-9.5 Agency relationship; performance of duties 

Sec. 9.5. (a) A licensee has an agency relationship with, and is 

representing, the individual with whom the licensee is working unless: 

(1) there is a written agreement to the contrary; or 

(2) the licensee is merely assisting the individual as a customer 

without compensation. 

(b) If a licensee, under subsection (a)(1), does not have an agency 

relationship with the individual with whom the licensee is working due to 

the existence of a written agreement to the contrary, the licensee must 

perform at least the following duties under the written agreement: 

(1) Be available to receive and timely present offers and 

counteroffers for the purchase or lease of: 

(A) the property of the individual, if the individual is a seller or 

landlord; or 

(B) the property that the individual seeks to purchase or lease, if 

the individual is a buyer or tenant. 

(2) Assist in negotiating, completing real estate forms, 

communicating, and timely presenting offers, counteroffers, notices, 

and various addenda relating to the offers and counteroffers until: 

(A) a purchase agreement or lease is signed; and 

(B) all contingencies are satisfied or waived. 

(3) Timely respond to questions relating to offers, counter offers, 

notices, various addenda, and contingencies from the seller, 

landlord, buyer, or tenant pertaining to the subject property. 

(c) If: 

(1) a licensee described in subsection (b) fails to perform the duties 

set forth in subsection (b); and 

19 

(2) another licensee performs those duties on behalf of or at the 

request of a seller, landlord, buyer, or tenant; 

the performance of those duties by the other licensee referred to in 

subdivision (2) does not constitute an agency relationship. 

(d) This section does not prohibit a licensee from performing duties in 

addition to the duties specified in this section on behalf of or at the 

request of a seller, landlord, buyer, or tenant in a real estate transaction. 


IC 25-34.1-10-10 Licensee representing seller or landlord; duties; 

disclosure of information 

Sec. 10. (a) A licensee representing a seller or landlord has the 

following duties and obligations: 

(1) To fulfill the terms of the agency relationship made with the seller 

or landlord. 

(2) To disclose the nature of the agency relationship with the seller 

or landlord, and redefine and disclose if the relationship changes. 

(3) To promote the interests of the seller or landlord by: 

(A) seeking a price or lease rate and contract terms satisfactory to 

the seller or landlord; however, the licensee is not obligated to 

seek additional offers to purchase or lease after an offer to 

purchase or lease has been accepted by the seller or landlord, 

unless otherwise agreed between the parties; 

(B) presenting all offers to purchase or lease to and from the seller 

or landlord immediately upon receipt of the offers regardless of 

whether an offer to purchase or lease has been accepted, unless 

otherwise directed by the seller or landlord; 

(C) disclosing to the seller or landlord adverse material facts or 

risks actually known by the licensee concerning the real estate 

transaction; 

(D) advising the seller or landlord to obtain expert advice 

concerning material matters that are beyond the licensee's 

expertise; 

(E) timely accounting for all money and property received from the 

seller or landlord; 

(F) exercising reasonable care and skill; and 

(G) complying with the requirements of this chapter and all 

applicable federal, state, and local laws, rules, and regulations, 

including fair housing and civil rights statutes, rules, and 

regulations. 

(b) A licensee representing a seller or landlord may not disclose the 

following without the informed written consent of the seller or landlord: 

(1) That a seller or landlord will accept less than the listed price or 

lease rate for the property or other contract concessions. 

(2) What motivates the seller to sell or landlord to lease the property. 

(3) Any material or confidential information about the seller or 

landlord unless the disclosure is required by law or where failure to 

disclose would constitute fraud or dishonest dealing. 

(c) A licensee representing a seller or landlord owes no duties or 

obligations to the buyer or tenant except that a licensee shall treat all 

prospective buyers or tenants honestly and shall not knowingly give them 

false information. 

(d) A licensee shall disclose to a prospective buyer or tenant adverse 

material facts or risks actually known by the licensee concerning the 

physical condition of the property and facts required by statute or 

regulation to be disclosed and that could not be discovered by a 

reasonable and timely inspection of the property by the buyer or tenant. 

A licensee representing a seller or landlord owes no duty to conduct an 

independent inspection of the property for the buyer or tenant or to verify 

the accuracy of any statement, written or oral, made by the seller, the 

landlord, or an independent inspector. This subsection does not limit the 

obligation of a prospective buyer or tenant to obtain an independent 

inspection of the physical condition of the property. A cause of action

does not arise against a licensee for disclosing information in compliance 

with this section. 

(e) A licensee representing a seller or landlord may: 

(1) show alternative properties not owned by the seller or landlord to 

a prospective buyer or tenant and may list competing properties for 

sale or lease without breaching any duty or obligation to the seller or 

landlord; and 

(2) provide to a buyer or tenant services in the ordinary course of a 

real estate transaction and any similar services that do not violate 

the terms of the agency relationship made with the seller or landlord. 


IC 25-34.1-10-11 Licensee representing buyer or tenant; duties; 

disclosure of information 

Sec. 11. (a) A licensee representing a buyer or tenant has the following 

duties and obligations: 

(1) To fulfill the terms of the agency relationship made with the buyer 

or tenant. 

(2) To disclose the nature of the agency relationship with the buyer 

or tenant, and redefine and disclose if the relationship changes. 

(3) To promote the interests of the buyer or tenant by: 

(A) seeking a property with a price or lease rate and contract terms 

satisfactory to the buyer or tenant; however, the licensee is not 

obligated to locate other properties to purchase or lease while the 

buyer is under contract to buy property or while the tenant is under 

contract to lease property, unless otherwise agreed between the 

parties; 

(B) presenting all offers to purchase and lease to and from the 

buyer or tenant immediately upon receipt of an offer regardless of 

whether the buyer is already under contract to buy or the tenant is 

under contract to lease property, unless otherwise directed by the 

buyer or tenant; 

(C) disclosing to the buyer or tenant adverse material facts or risks 

actually known by the licensee concerning the real estate 

transaction; 

(D) advising the buyer or tenant to obtain expert advice concerning 

material matters that are beyond the licensee's expertise; 

(E) timely accounting for all money and property received from the 

buyer or tenant; 

(F) exercising reasonable care and skill; and 

(G) complying with the requirements of this chapter and all 

applicable federal, state, and local laws, rules, and regulations, 

including fair housing and civil rights statutes, rules, and 

regulations. 

(b) A licensee representing a buyer or tenant shall not disclose the 

following without the informed consent, in writing, of the buyer or tenant: 

(1) That a buyer or tenant will pay more than the offered purchase 

price or offered lease rate for the property or other contract 

concessions. 

(2) What motivates the buyer to buy or tenant to lease the property. 

(3) Any material or confidential information about the buyer or tenant 

unless this disclosure is required by law or where failure to disclose 

would constitute fraud or dishonest dealing. 

(c) A licensee representing a buyer or tenant owes no duties or 

obligations to the seller or landlord except that a licensee shall treat all 

prospective sellers or landlords honestly and not knowingly give them 

false information. 

(d) A licensee representing a buyer or tenant owes no duty to conduct 

an independent investigation of the buyer's or tenant's financial ability to 

perform for the benefit of the seller or landlord or to verify the accuracy of 

any statement, written or oral, made by the buyer, the tenant, or a third 

party. 

(e) A licensee representing a buyer or tenant may: 

20 

(1) show properties in which the buyer or tenant is interested to other 

prospective buyers or tenants and may show competing buyers or 

tenants the same property or assist other buyers or tenants in 

purchasing or leasing a particular property without breaching any 

duty or obligation to the buyer or tenant; and 

(2) provide to a seller or landlord services in the ordinary course of a 

real estate transaction and any similar services that do not violate 

the terms of the agency relationship made with the buyer or tenant. 


IC 25-34.1-10-12 Licensee acting as limited agent 

Sec. 12. (a) A licensee may act as a limited agent only with the written 

consent of all parties to a real estate transaction. The written consent is 

presumed to have been given and all parties are considered informed for 

any party who signs a writing or writings at the time of entering into an 

agency relationship with the licensee that contains the following: 

(1) A description of the real estate transaction or types of real estate 

transactions in which the licensee will serve as a limited agent. 

(2) A statement that in serving as a limited agent, the licensee 

represents parties whose interests are different or even adverse. 

(3) A statement that a limited agent shall not disclose the following 

without the informed consent, in writing, of the parties to the real 

estate transaction: 

(A) Any material or confidential information, except adverse 

material facts or risks actually known by the licensee concerning 

the physical condition of the property and facts required by statute, 

rule, or regulation to be disclosed and that could not be discovered 

by a reasonable and timely inspection of the property by the 

parties. 

(B) That a buyer or tenant will pay more than the offered purchase 

price or offered lease rate for the property. 

(C) That a seller or landlord will accept less than the listed price or 

lease rate for the property. 

(D) What motivates a party to buy, sell, or lease the property. 

(E) Other terms that would create a contractual advantage for one 

(1) party over another party. 

(4) A statement that there will be no imputation of knowledge or 

information between any party and the limited agent or among 

licensees. 

(5) A statement that a party does not have to consent to the limited 

agency. 

(6) A statement that the consent of each party has been given 

voluntarily and that any limited agency disclosure has been read and 

understood. 

(b) A licensee acting as a limited agent may disclose and provide to 

both the seller and buyer property information, including listed and sold 

properties available through a multiple listing service or other information 

source. 

(c) A cause of action does not arise against a licensee for disclosing or 

failing to disclose information in compliance with this section, and the 

limited agent does not terminate the limited agency relationship by 

making a required disclosure. 


IC 25-34.1-10-12.5 Representations by licensees 

Sec. 12.5. (a) An individual licensee affiliated with a principal broker 

represents only the client with which the licensee is working in an inhouse 

agency relationship. A client represented by an individual licensee 

affiliated with a principal broker is represented only by that licensee to the 

exclusion of all other licensees. A principal or managing broker does not 

represent any party in such transactions unless the principal or managing 

broker has an agency relationship to personally represent a client. 

(b) A licensee who personally represents both the seller and buyer or 

both the landlord and tenant in a real estate transaction is a limited agent

and is required to comply with the provisions of this chapter governing 

limited agents. 

(c) A licensee representing a client in an in-house agency relationship 

owes the client duties and obligations set forth in this chapter and shall 

not disclose material or confidential information obtained from the client 

to other licensees, except to the principal or managing broker for the 

purpose of seeking advice or assistance for the client's benefit. 

(d) A principal broker, managing broker, and any affiliated licensee 

shall take reasonable and necessary care to protect any material or 

confidential information disclosed by a client to the client's in-house 

agent. 

(e) In all in-house agency relationships, a principal broker, managing 

broker, and an individual licensee possess only actual knowledge and 

information. There is no imputation of agency, knowledge, or information 

among or between clients, the principal broker, the managing broker, and 

licensees. 


IC 25-34.1-10-13 Written office policy regarding agency 

relationships; disclosure of policy; disclosure of compensation; 

compensation not creating agency relationship 

Sec. 13. (a) A principal broker shall develop and enforce a written 

office policy that identifies and describes the agency relationships that a 

licensee may have with a seller, landlord, buyer, or tenant and that 

specifically permits or rejects the practice of disclosed limited agency. 

(b) At the beginning of an agency relationship, a licensee shall disclose 

in writing the principal broker's written office policy set forth in this section 

before the disclosure by the potential seller, landlord, buyer, or tenant of 

any confidential information specific to that potential seller, landlord, 

buyer, or tenant. 

(c) Parties to a real estate transaction shall be advised whether 

compensation will be shared with other principal brokers who may 

represent other parties to the transaction whose interests are different or 

even adverse. 

(d) The payment of compensation does not create an agency 

relationship between a licensee and a seller, landlord, buyer, or tenant. 


IC 25-34.1-10-14 Commencement and termination of agency 

relationship 

Sec. 14. (a) The duties and obligations set forth in this chapter begin at 

the time the licensee enters into an agency relationship with a party to a 

real estate transaction and continues until the agency relationship 

terminates. 

(b) If the agency relationship is not fulfilled or completed for any 

reason, the agency relationship ends at the earlier of: 

(1) a date of expiration agreed upon by the parties; or 

(2) a termination of the relationship by the parties. 

(c) Except as otherwise agreed to in writing and as provided in 

subsection (b), a licensee representing a seller, landlord, buyer, or tenant 

owes no further duties or obligations after termination, expiration, or 

completion of the agency relationship, except: 

(1) accounting for all money and property received during the agency 

relationship; and 

(2) keeping confidential all information received during the course of 

the agency relationship that was made confidential by request or 

instructions from the client, unless: 

(A) the disclosure is required by law; 

(B) the client gives written consent to the disclosure; or 

(C) the information becomes public from a source other than the 

licensee or by subsequent words or conduct of the client. 


IC 25-34.1-10-15 Fiduciary duties superseded 

21 

Sec. 15. The duties and obligations of a licensee set forth in this 

chapter supersede any fiduciary duties of a licensee to a party based on 

common law principles of agency to the extent that those common law 

fiduciary duties are inconsistent with the duties and obligations set forth 

in this chapter. 


IC 25-34.1-10-16 Liability for misrepresentation 

Sec. 16. (a) A client is not liable for any misrepresentation made by a 

licensee in connection with the agency relationship, unless the client 

knew or should have known of the misrepresentation. 

(b) A licensee is not liable for any misrepresentation made by another 

licensee, unless the licensee knew or should have known of the other 

licensee's misrepresentation. 


IC 25-34.1-10-17 Subagency prohibited 

Sec. 17. A licensee may not make an offer of subagency through a 

multiple listing service or other information source, or agree to appoint, 

cooperate with, compensate, or otherwise associate with a subagent in a 

real estate transaction. The elimination of subagency by this section is 

not intended to limit the rights of a licensee to cooperate with, 

compensate, or otherwise associate with another licensee who is not 

acting on behalf of a client. 


Non-Code Provisions 

P.L.145-2008, SECTION 35 

(a) As used in this SECTION, "task force" refers to the mortgage 

lending and fraud prevention task force created under subsection (b). 

(b) Not later than May 1, 2008, the following agencies shall create the 

mortgage lending and fraud prevention task force by each appointing an 

equal number of representatives to serve on the task force: 

(1) The securities division of the office of the secretary of state 

established under IC 23-19-6-1(a). 

(2) The homeowner protection unit established by the attorney 

general under IC 4-6-12-2. 

(3) The department of financial institutions established by IC 28-11- 

1-1. 

(4) The department of insurance created by IC 27-1-1-1. 

(5) The Indiana real estate commission created by IC 25-34.1-2-1. 

(6) The real estate appraiser licensure and certification board 

created by IC 25-34.1-8-1. 

(c) The members of the task force shall annually appoint a chair from 

among the members of the task force. Each year, the chair shall rotate 

among the agencies set forth in subsection (b). 

(d) Subject to subsection (e), beginning not later than July 2008, the 

task force shall meet each month to: 

(1) coordinate the state's efforts to: 

(A) regulate the various participants involved in originating, 

issuing, and closing home loans; 

(B) enforce state laws and rules concerning mortgage lending 

practices and mortgage fraud; and 

(C) prevent fraudulent practices in the home loan industry; and 

(2) share information and resources necessary for the efficient 

administration of the tasks set forth in subdivision (1), unless 

prohibited by law. 

(e) With respect to any meeting of the task force: 

(1) one (1) or more members of the task force may participate in the 

meeting; or 

(2) the meeting may be conducted in its entirety;

y means of a conference telephone or similar communications 

equipment by which all persons participating in the meeting can 

communicate with each other. Participation by the means described in 

this subsection constitutes presence in person at the meeting. 

(f) Beginning in 2008, not later than November 1 of each year, the task 

force shall report to the legislative council on the activities of each 

agency comprising the task force under subsection (b) with respect to the 

most recent state fiscal year. The report required under this subsection 

must include: 

(1) information on the regulatory activities of each agency described 

in subsection (b), including a description of any: 

(A) disciplinary or enforcement actions taken; 

(B) criminal prosecutions pursued; 

(C) rules adopted; 

(D) policies issued; or 

(E) legislative recommendations made; 

concerning the professions involved in originating, issuing, and 

closing home loans; 

(2) a description of any challenges: 

(A) encountered by the task force during the most recent state 

fiscal year; or 

(B) anticipated by the task force in the current state fiscal year; 

in carrying out the duties set forth in subsection (d); 

(3) any additional information required by the legislative council; and 

(4) any recommendations by the task force for legislation necessary 

to assist the task force in carrying out the duties set forth in 

subsection (d). 

A report to the legislative council under this subsection must be in an 

electronic format under IC 5-14-6. 

P.L.145-2008, SECTION 38 

(a) As used in this SECTION, "board" refers to the real estate 

appraiser licensure and certification board created by IC 25-34.1-8-1. 

(b) As used in this SECTION, "commission" refers to the Indiana real 

estate commission created by IC 25-34.1-2-1. 

(c) Notwithstanding IC 25-34.1-8-10(e), as added by this act, the 

commission shall adopt rules to implement IC 25-34.1-8-10, as amended 

by this act, in the same manner as emergency rules are adopted under 

IC 4-22-2-37.1. Not later than July 1, 2008, the board shall make 

recommendations to the commission concerning the rules needed to 

implement IC 25-34.1-8-10, as amended by this act. The commission 

shall adopt any emergency rules under this SECTION not later than 

December 1, 2008. An emergency rule adopted under this SECTION: 

(1) takes effect on January 1, 2009; and 

(2) expires on the earlier of: 

(A) the date the rule is adopted by the commission under IC 4-22- 

2-24 through IC 4-22-2-36; or 

(B) January 1, 2010. 

(d) This SECTION expires January 1, 2010. 

22


ARTICLE 1.5. PROFESSIONAL CORPORATIONS 


Chapter 1. Definitions 

IC 23-1.5-1-1 Application of definitions 

Sec. 1. The definitions in this chapter apply throughout this article. 


IC 23-1.5-1-2 "Accounting professional" 

Sec. 2. "Accounting professional" means an individual who is licensed 

as: 

(1) a certified public accountant under IC 25-2.1-3; 

(2) a public accountant under IC 25-2.1-6; or 

(3) an accounting practitioner under IC 25-2.1-6. 


IC 23-1.5-1-3 "Architectural or engineering professional" 

Sec. 3. "Architectural or engineering professional" means an individual 

who is registered as: 

(1) an architect under IC 25-4-1; 

(2) a landscape architect under IC 25-4-2; 

(3) a professional engineer under IC 25-31-1; or 

(4) a land surveyor under IC 25-21.5. 


IC 23-1.5-1-4 "Attorney" 

Sec. 4. "Attorney" means an individual in good standing admitted to the 

practice of law in Indiana. 


IC 23-1.5-1-5 "Bureau" 

Sec. 5. "Bureau" means the following: 

(1) In the case of: 

(A) an accounting professional; 

(B) an architectural professional; 

(C) an engineering professional; 

(D) a health care professional; 

(E) a real estate professional; or 

(F) a veterinarian; 

the Indiana professional licensing agency established by IC 25-1-5- 

3. 

(2) In the case of an attorney, the state board of law examiners. 


P.L.169-1985, SEC.19; P.L.229-1995, SEC.1; P.L.1-2006, SEC.406. 

IC 23-1.5-1-5.4 "Charitable remainder annuity trust" 

Sec. 5.4. "Charitable remainder annuity trust" has the meaning set 

forth in Section 664(d)(1) of the Internal Revenue Code. 


IC 23-1.5-1-5.6 "Charitable remainder unitrust" 

Sec. 5.6. "Charitable remainder unitrust" has the meaning set forth in 

Section 664(d)(2) or 664(d)(3) of the Internal Revenue Code. 


agency, or other entity that for any reason is or becomes ineligible under 

this article to own shares issued by a professional corporation. The term 

includes a charitable remainder unitrust or charitable remainder annuity 

trust that is or becomes a disqualified person for failure to comply with 

section 13(3) of this chapter. 


P.L.172-1996, SEC.3. 

IC 23-1.5-1-7 "Foreign professional corporation" 

Sec. 7. "Foreign professional corporation" means a corporation for 

profit organized for the purpose of rendering professional services under 

the law of another state or country. 


IC 23-1.5-1-8 "Health care professional" 

Sec. 8. "Health care professional" means an individual who is licensed, 

certified, or registered by a board (as defined in IC 25-1-9-1). However, 

the term does not include a veterinarian. 


P.L.149-1987, SEC.15; P.L.14-2002, SEC.1. 

IC 23-1.5-1-9 "Licensing authority" 

Sec. 9. "Licensing authority" means the following: 

(1) In the case of an accounting professional, the Indiana state board 

of public accountancy. 

(2) In the case of an architectural professional, the board of 

registration for architects and landscape architects. 

(3) In the case of an engineering professional, the state board of 

registration for professional engineers. 

(4) In the case of an attorney, the Indiana supreme court. 

(5) In the case of a health care professional, the board (as defined in 

IC 25-1-9-1) that issues the individual's license, certification, or 

registration. 

(6) In the case of a veterinarian, the Indiana board of veterinary 

medical examiners. 

(7) In the case of a land surveyor, the state board of registration for 

land surveyors. 

(8) In the case of a real estate professional, the Indiana real estate 

commission. 



P.L.23-1991, SEC.6; P.L.33-1993, SEC.8; P.L.229-1995, SEC.2; P.L.24- 

1999, SEC.1; P.L.82-2000, SEC.1; P.L.14-2002, SEC.2. 

IC 23-1.5-1-10 "Professional corporation" 

Sec. 10. "Professional corporation" means: 

(1) a corporation for profit organized under this article; or 

(2) a foreign corporation admitted to do business under this article. 


IC 23-1.5-1-11 "Professional service" 

Sec. 11. "Professional service" means any type of service that may be 

legally performed only by: 

(1) an accounting professional; 

(2) an architectural or engineering professional; 

(3) an attorney; 

(4) a health care professional; 

(5) a veterinarian; or 

(6) a real estate professional. 


IC 23-1.5-1-6 "Disqualified person" 

Sec. 6. "Disqualified person" means an individual, corporation, limited 

liability company, partnership, fiduciary, trust, association, government 

23

IC 23-1.5-1-12 "Qualified person" 

Sec. 12. "Qualified person" means an individual, general partnership, 

professional corporation, or trustee of a qualified trust that is eligible 

under this article to own shares issued by a professional corporation. 


IC 23-1.5-1-13 "Qualified trust" 

Sec. 13. "Qualified trust" means one (1) of the following: 

(1) A trust of which the entire beneficial ownership is owned by a 

qualified person and the trustee is a qualified person. 

(2) A voting trust established under IC 23-1-31, if the beneficial 

owner of any shares on deposit and the trustee of the voting trust are 

qualified persons. 

(3) A charitable remainder unitrust or charitable remainder annuity 

trust that complies with each of the following conditions: 

(A) Has one (1) or more current income recipients, all of whom are 


(B) Has a trustee or an independent special trustee who: 

(i) is a qualified person; and 

(ii) has exclusive authority over the shares of the professional 

corporation while the shares are held in the trust. 

(C) Has one (1) or more irrevocably designated charitable 

remaindermen, all of which must at all times: 

(i) be domiciled; or 

(ii) maintain a local chapter; 

in Indiana. 

(D) When distributing any assets during the term of the trust to 

charitable organizations, the distributions are made only to 

charitable organizations described in Section 170(c) of the Internal 

Revenue Code that: 

(i) are domiciled; or 

(ii) maintain a local chapter; 



P.L.172-1996, SEC.4. 

IC 23-1.5-1-13.5 "Real estate professional" 

Sec. 13.5. "Real estate professional" means an individual who is 

licensed as: 

(1) a real estate salesperson under IC 25-34.1-3-3.1; or 

(2) a real estate broker licensed under IC 25-34.1-3-4.1. 


IC 23-1.5-1-14 "Veterinarian" 

Sec. 14. "Veterinarian" means an individual admitted to practice 

veterinary medicine under IC 25-38.1-3. 



Chapter 2. Administrative Provisions 

IC 23-1.5-2-1 Application of IC 23-1 

Sec. 1. IC 23-1 applies to professional corporations formed under this 

article. However, in the event of a conflict between this article and IC 23- 

1, this article applies. 


IC 23-1.5-2-2 Performance of administrative functions by bureaus 

Sec. 2. All administrative functions, duties, and responsibilities 

assigned by this article to any licensing authority shall be performed by 

the appropriate bureau. 


24 

IC 23-1.5-2-3 Formation of professional corporations; authorization 

of investments; admission of foreign professional corporations 

Sec. 3. (a) Except as provided in subsections (c) and (d) and IC 25- 

2.1-5, a professional corporation may be formed to render professional 

services as follows: 

(1) One (1) or more accounting professionals may form a 

professional corporation to render services that may legally be 

performed only by an accounting professional. 

(2) One (1) or more architectural or engineering professionals may 

form a professional corporation to render services that may legally 

be performed only by an architectural or engineering professional. 

(3) One (1) or more attorneys may form a professional corporation to 

render services that may legally be performed only by an attorney. 

(4) One (1) or more health care professionals may form a 


performed only by a health care professional. 

(5) One (1) or more veterinarians may form a professional 

corporation to render services that may legally be performed only by 

a veterinarian. 

(6) One (1) or more real estate professionals may form a 


performed only by a real estate professional. 

(b) A foreign professional corporation may be admitted to render 

professional services in Indiana by complying with IC 23-1.5-5. 

(c) A domestic professional corporation or a foreign professional 

corporation admitted to render professional services in Indiana: 

(1) shall have at least one (1) shareholder who is licensed in Indiana; 


(2) may have at least one (1) shareholder who is licensed under the 

laws of another state to render similar professional services. 

(d) In addition to the professional services permitted by its articles of 

incorporation, a professional corporation may invest its funds in any type 

of investment not prohibited by law. 


P.L.34-1997, SEC.3; P.L.128-2001, SEC.1. 

IC 23-1.5-2-4 Qualifications of directors and officers 

Sec. 4. The directors of a professional corporation and all the officers 

other than the secretary and the treasurer must be qualified persons with 

respect to the corporation. 


IC 23-1.5-2-5 Persons rendering professional services; licensing 

Sec. 5. (a) A professional corporation may render professional services 

only through individuals permitted to render such services in Indiana. 

However, individuals who are not usually and ordinarily considered by 

custom and practice to be rendering professional services (such as 

clerks, bookkeepers, and technicians) are not required to be licensed to 

perform their services. 

(b) A licensed individual acting in his individual capacity may render 

professional services, even though the individual may be a shareholder, 

director, officer, employee, or agent of a professional corporation. 


IC 23-1.5-2-6 Liability of corporation, shareholders, and persons 

rendering professional services 

Sec. 6. (a) An individual who renders professional services as an 

employee of a professional corporation is liable for any negligent or 

wrongful act or omission in which he personally participates to the same 

extent as if he rendered such services as a sole practitioner. 

(b) An individual who renders professional services as an employee of 

a professional corporation is liable for the conduct of other employees of

the professional corporation under his direction or control to the same 

extent a sole practitioner would be so liable. 

(c) A corporation whose employees perform professional services 

within the scope of their employment or of their apparent authority to act 

for the corporation is liable to the same extent as its employees. 

(d) Except as otherwise provided by statute or by rule of the licensing 

authority, the personal liability of a shareholder of a professional 

corporation is no greater in any respect than that of a shareholder of a 

corporation organized under IC 23-1. 


IC 23-1.5-2-7 Relationship of patient or client to corporation or 

person performing professional services; privileged 

communications 

Sec. 7. (a) The relationship between an individual performing 

professional services as an employee of a professional corporation and a 

client or patient is the same as if the individual performed such services 

as a sole practitioner. 

(b) The relationship between a professional corporation performing 

professional services and the client or patient is the same as between the 

client or patient and the individual performing the services. 

(c) A privilege applicable to communications between a person 

rendering professional services and the person receiving such services 

recognized under Indiana law remains inviolate and extends to a 

professional corporation and its employees in all cases in which it applies 

to communications between an individual rendering professional services 

on behalf of the corporation and the person receiving such services. 


IC 23-1.5-2-8 Corporate name 

Sec. 8. (a) The corporate name of every professional corporation 

organized under this article: 

(1) must include the words "Professional Services Corporation" or 

"Professional Corporation" or an abbreviation of these words; 

(2) may not contain any word or phrase that indicates or implies any 

purpose or power not possessed by corporations organizable under 

this article; and 

(3) may not contain any word or phrase that indicates that it is 

organized for any purpose other than that listed in the articles of 

incorporation. 

In addition, only a professional corporation in which all shareholders are 

physicians licensed under IC 25-22.5 may use the term "medical" in its 

corporate name. 

(b) A licensing authority may by rule adopt further requirements than 

those specified in subsection (a) as to the names of professional 

corporations organized under this article. 


IC 23-1.5-2-9 Certificates of registration and incorporation; 

issuance 

Sec. 9. (a) The secretary of state may issue a certificate of 

incorporation under this article only if a certificate of registration has first 

been obtained as provided by this section. 

(b) Application for a certificate of registration: 

(1) shall be made to the bureau in writing; and 

(2) must contain the name and address of the proposed corporation 

and such other information as may be required by a licensing 

authority. 

(c) Upon receipt of the application, the licensing authority shall review 

the application and make such investigation of the proposed corporation 

as it considers necessary. If the licensing authority finds that: 

(1) the directors and shareholders are properly licensed in 

compliance with statute and the rules of the licensing authority; and 

(2) the corporation will be organized in compliance with statute and 

with the rules of the licensing authority; 

the licensing authority shall certify to the bureau that a certificate of 

registration should be issued. When the bureau has received approval 

from the appropriate licensing authorities, the bureau shall issue, upon 

payment of a registration fee of twenty-five dollars ($25), a certificate of 

registration. 

(d) The incorporators shall present the certificate of registration to the 

secretary of state at the time the articles of incorporation are presented 

for filing. 

(e) The secretary of state shall issue a certificate of incorporation within 

sixty (60) days after the date the articles of incorporation are filed, if he 

finds that the articles of incorporation conform to law. 

(f) After the articles of incorporation are approved, the secretary of 

state shall: 

(1) place his endorsement on the certificate of registration; and 

(2) return to the incorporators the certificate of registration and the 

certificate of incorporation, along with all accompanying documents. 

(g) The certificate of registration takes effect upon the issuance of the 

certificate of incorporation by the secretary of state, and remains in effect 

until January 31 following the date of incorporation. 


IC 23-1.5-2-10 Certificate of registration; renewal 

Sec. 10. (a) The certificate of registration must be renewed biennially 

before January 31 of even numbered years. The holder of the certificate 

of registration must apply for renewal by submitting to the bureau: 

(1) a written application upon a form prescribed by the bureau; and 

(2) a fee of twenty dollars ($20). 

(b) The licensing authority shall submit its approval to the bureau for 

the renewal of the certificate of registration if the licensing authority finds 

that the corporation has complied with: 

(1) this chapter; and 

(2) the rules of the licensing authority. 




IC 23-1.5-2-11.1 Biennial report 

Sec. 11.1. A professional corporation must file a biennial report under 

IC 23-1. 



Chapter 3. Ownership 

IC 23-1.5-3-1 Shares; issuance; transfer 

Sec. 1. (a) Except as provided in IC 25-2.1-5, a professional 

corporation may issue shares, fractional shares, and rights or options to 

purchase shares only to: 

(1) individuals who are authorized by Indiana law or the laws of 

another state to render a professional service permitted by the 

articles of incorporation of the corporation; 

(2) general partnerships in which all the partners are authorized by 

Indiana law or the laws of another state to render a professional 

service permitted by the articles of incorporation of the corporation; 

(3) professional corporations authorized by Indiana law or the laws of 

another state to render a professional service permitted by the 

articles of incorporation of the corporation; and 

(4) the trustee of a qualified trust. 

25

(b) When determined necessary by the licensing authority for any 

profession in order to prevent violations of the ethical standards of the 

profession, the licensing authority may by rule further restrict, condition, 

or abridge the authority of professional corporations to issue shares, but 

no such rule may, of itself, have the effect of causing a shareholder of a 

professional corporation at the time the rule becomes effective to 

become a disqualified person. All shares issued in violation of: 

(1) this section; or 

(2) any rule adopted by a licensing authority as provided by this 

section; 

are void. 

(c) Except as provided in IC 25-2.1-5, a shareholder of a professional 

corporation may transfer or pledge shares, fractional shares, and rights 

or options to purchase shares of the corporation only to individuals, 

general partnerships, professional corporations, and trustees of qualified 

trusts qualified under this article to own shares issued directly to them by 

the professional corporation. A transfer of shares in violation of this 

subsection is void; however, this subsection does not apply to the 

transactions described in section 3 of this chapter. 

(d) Each certificate representing shares of a professional corporation 

must state conspicuously upon its face that the shares represented by 

that certificate are subject to: 

(1) restrictions on transfer imposed by this article; and 

(2) such restrictions on transfer as may be imposed by the licensing 

authority under this article. 

(e) This section does not permit or authorize an individual to practice 

within Indiana any profession with respect to which a license or 

registration is required by the state without the individual being licensed 

or registered under the laws of the state. 


P.L.128-2001, SEC.2. 

IC 23-1.5-3-2 Authority to purchase shares from disqualified 

persons 

Sec. 2. A professional corporation may purchase its own shares from a 

disqualified person without regard to the availability of capital or earned 

surplus for the purchase; however, no purchase of or payment for its own 

shares may be made at a time when the corporation is insolvent or when 

the purchase or payment would make it insolvent. 


IC 23-1.5-3-3 Transfer or purchase of shares from disqualified 

persons; procedure 

Sec. 3. (a) Whenever: 

(1) a shareholder of a professional corporation dies; 

(2) a shareholder of a professional corporation becomes a 

disqualified person; 

(3) a charitable remainder unitrust or charitable remainder annuity 

trust that holds shares of a professional corporation becomes a 

disqualified person; or 

(4) shares of a professional corporation are transferred by operation 

of law or court decree to a disqualified person; 

the shares of the deceased shareholder or disqualified person may be 

transferred to a qualified person. If the shares are not so transferred, the 

shares shall be purchased or redeemed by the corporation to the extent 

of funds that may legally be made available for the purchase, as provided 

in section 2 of this chapter. 

(b) Within five (5) months after such death or thirty (30) days after such 

a disqualification or transfer, if the price and method of payment for such 

shares is not fixed or ascertainable by the articles of incorporation or 

bylaws of the corporation or by private agreement, the corporation shall 

make a written offer to pay for the shares at a specified price determined 

by the corporation to be the fair value of the shares as of the date of the 

death, disqualification, or transfer. The offer: 

26 

(1) shall be given to the disqualified person, which, in the case of a 

deceased shareholder, is the executor, administrator, or heirs at law 

if there is no executor or administrator; and 

(2) must be accompanied by: 

(A) a balance sheet of the corporation, as of the latest available 

date and not more than twelve (12) months before the making of 

the offer; and 

(B) an income statement of the corporation for the twelve (12) 

month period ending on the date of the balance sheet. 

(c) If the fair value of the shares is agreed upon between the 

disqualified person and the corporation within thirty (30) days after the 

date of the written offer from the corporation, payment for the shares 

shall be made upon surrender of the certificate or certificates 

representing the shares: 

(1) within sixty (60) days after the date of the offer; or 

(2) at such other time as the parties may fix by agreement. 

Upon payment of the agreed value, the disqualified person ceases to 

have any interest in the shares. 

(d) If the disqualified person and the corporation do not agree on the 

fair value of the shares within thirty (30) days after the corporation's 

written offer, the following procedures apply: 

(1) The disqualified person may make written demand within sixty 

(60) days after the date of the corporation's written offer that the 

corporation file a petition in the circuit or superior court in the county 

where the principal office of the corporation is located, requesting 

that the fair value of the shares be determined. The corporation shall 

file a petition under this subdivision within thirty (30) days after 

receipt of written demand from the disqualified person. If the 

corporation fails to institute the proceeding as required by this 

subdivision, the disqualified person may do so within sixty (60) days 

after delivery of the written demand to the corporation. 

(2) If the corporation so elects at any time within sixty (60) days after 

the date of the corporation's written offer, it may file a petition for the 

determination of the fair value of the shares in the circuit or superior 

court in the county where the principal office of the corporation is 

located. 

(3) The disqualified person shall be made a party to any proceeding 

under this subsection. 

(4) All proceedings instituted under this subsection shall be governed 

by the Indiana rules of trial procedure. 

(5) In a proceeding under this subsection, the court may appoint one 

(1) or more persons as appraisers to receive evidence and make a 

recommendation to the court on the question of the fair value of the 

shares. The appraisers have such authority as shall be specified in 

the appointment order of the court. 

(e) In a proceeding under subsection (d), the disqualified person is 

entitled to judgment against the corporation for the amount of the fair 

value of his shares as of the date of death, disqualification, or transfer, 

upon surrender to the corporation of the certificate or certificates 

representing the shares. The court may order that the judgment be paid 

by the corporation in such installments as the court determines to be fair 

and just. The judgment may include an allowance for interest, not to 

exceed the legal rate of interest for judgments specified in IC 24-4.6-1- 

101, from the date of death, disqualification, or transfer. 

(f) Except as provided in this subsection, the costs and expenses of 

any proceeding under subsection (d) shall be determined by the court 

and shall be assessed against the corporation. If the fair value of the 

shares as determined by the court does not exceed the amount specified 

in the last written offer made by the corporation, the court may assess all 

or any part of the costs and expenses of the proceeding against the 

disqualified person. For purposes of this subsection, expenses include: 

(1) reasonable compensation for and reasonable expenses of the 

appraisers; and 

(2) reasonable fees and expenses of counsel.

(g) If a purchase, redemption, or transfer of the shares of a deceased 

or disqualified shareholder or of a transferee who is a disqualified person 

is not completed within ten (10) months after the death of the deceased 

shareholder or within five (5) months after the disqualification or transfer, 

the corporation shall immediately cancel the shares on its books, and the 

disqualified person as of the date of cancellation has no further interest 

as a shareholder in the corporation other than his right to payment for 

such shares under this section. A corporation may not cancel its shares if 

a petition for a determination of fair value has been filed under this 

section in a circuit or superior court. 

(h) Shares acquired by a corporation: 

(1) in payment of the agreed value for the shares; or 

(2) in payment of a judgment entered for the payment of those 

shares, as provided in this section; 

may be held and disposed of by the corporation as in the case of other 

treasury shares. 

(i) Any provision regarding purchase, redemption, or transfer of shares 

of a professional corporation contained in the articles of incorporation, 

bylaws, or any private agreement is specifically enforceable in the courts 

of this state. 

(j) This section does not prevent or relieve a professional corporation 

from paying pension benefits or other deferred compensation for services 

rendered to or on behalf of a former shareholder as otherwise permitted 

by law. 


IC 23-1.5-3-4 Proxies; voting trusts 

Sec. 4. (a) A proxy for shares of a professional corporation is valid only 

if it is given to a qualified person of that corporation. 

(b) A voting trust with respect to shares of a professional corporation is 

valid only if all the trustees and beneficiaries of the voting trust are 



IC 23-1.5-3-5 Powers of administrator, executor, guardian, and 

others of estate of shareholder who holds all outstanding shares 

Sec. 5. This section applies to an administrator, executor, guardian, 

conservator, or receiver of the estate of a shareholder of a professional 

corporation who holds all of the outstanding shares of the corporation. 

Such a person may: 

(1) exercise voting rights; and 

(2) serve as a director and officer of the corporation; 

for the purposes of amending the articles of incorporation as provided in 

IC 23-1.5-4-2 or dissolving the corporation. 


IC 23-1.5-3-6 Filing of articles of incorporation; notice of change of 

ownership or address 

Sec. 6. (a) A professional corporation shall file a copy of its articles of 

incorporation, certified by the secretary of state, with the bureau. 

Thereafter, the corporation shall file with the bureau certified copies of all 

amendments to its articles of incorporation, including articles of 

acceptance and all articles of merger to which the corporation is a party. 

(b) A professional corporation shall notify the bureau of a change in the 

ownership of any of the shares in the professional corporation or a 

change in its business address within thirty (30) days after the date of the 

change. Notice of change in ownership must contain the names and post 

office addresses of the transferor shareholder and the transferee 

shareholder, and notice of change of business address must contain the 

street address of the old location and the street address of the new 

location. 



Chapter 4. Change of Corporate Form 

IC 23-1.5-4-1 Merger and consolidation 

Sec. 1. (a) A professional corporation may merge or consolidate with 

another corporation, domestic or foreign, only if every shareholder of 

each corporation is qualified to be a shareholder of the surviving or new 

corporation. 

(b) Upon the merger or consolidation of a professional corporation, if 

the surviving or new corporation is to render professional services in 

Indiana, it shall comply with this article. 


IC 23-1.5-4-2 Cessation of professional services 

Sec. 2. (a) If a professional corporation ceases to render professional 

services, the corporation shall: 

(1) amend its articles of incorporation to delete from its stated 

purposes the rendering of professional services; and 

(2) conform to the requirements of IC 23-1 regarding its corporate 

name. 

(b) The corporation may then continue in existence as a corporation 

under IC 23-1 and is no longer subject to this article. 


IC 23-1.5-4-3 Involuntary dissolution 

Sec. 3. (a) A professional corporation formed under this article may be 

involuntarily dissolved as provided by IC 23-1-47. 

(b) In addition to the causes specified in IC 23-1-47 for the involuntary 

dissolution of a corporation, a failure to comply with this article is a cause 

for the involuntary dissolution of a professional corporation under IC 23- 

1-46. 


IC 23-1.5-4-4 Right of corporation to accept this article 

Sec. 4. (a) Any corporation organized under Indiana law for any 

purpose or purposes for which a corporation might be organized under 

this article, and existing on September 1, 1983, may accept this article, 

and avail itself of the rights and privileges provided by this article, by 

complying with this article. Without limitation, this right to accept this 

article extends to any corporation formed under this or any other general 

statute, for any purpose or purposes for which a corporation might be 

organized under this article, if the corporation existed on or after 

September 1, 1983, or if its articles of incorporation fix a time of 

corporate existence that has terminated or thereafter terminates, if this 

corporation files its articles of acceptance within two (2) years after such 

termination. The acceptance of this article may be effected by the officer, 

directors, and members of the corporation or by persons acting as such. 

(b) Upon acceptance and compliance with the requirements of this 

article, the corporation shall be considered to have existed since 

termination and its acts, during this time, have the same validity as if 

performed before termination. 

(c) This section does not apply to any corporation whose corporate 

franchise has been forfeited under any other statute. 


IC 23-1.5-4-5 Articles of acceptance; approval by board of directors 

and members; presentation to secretary of state 

Sec. 5. (a) The board of directors or trustees of a corporation desiring 

to accept this article shall, by a resolution adopted by a majority vote of 

the board, approve articles of acceptance setting forth the following 

information: 

(1) The name of the corporation. 

27

(2) The location of its principal office and the name and address of 

its resident agent. 

(3) The date of its incorporation. 

(4) A designation of the law under which it was organized. 

(5) A declaration that it accepts all of the terms and provisions of this 

article. 

(6) A restatement of those provisions of its articles of incorporation or 

association that it desires to have continued in effect, as long as the 

provisions restated would have been authorized by this article as 

provisions of original articles of incorporation for a corporation 

organized under this article. Failure to restate such provisions in the 

articles of acceptance constitutes nonconformance to law, and the 

secretary of state shall refuse to file these articles of acceptance. 

Any provision not stated in its articles of acceptance is not effective 

after the articles are filed; however, this subdivision does not prevent 

any corporation from adopting and filing amended articles of 

acceptance that make the articles conform to this subdivision. 

Amended articles of acceptance shall be filed and recorded in the 

same manner as required for original articles of acceptance. 

(b) The resolution of the board of directors approving the articles of 

acceptance must direct that the articles be submitted to a vote of those 

members of the corporation who are entitled to vote in respect to the 

articles, at a designated meeting, which may be an annual meeting of 

members or a special meeting of those members who are entitled to 

vote. If the designated meeting is an annual meeting, notice of the 

submission of the articles of acceptance shall be included in the notice of 

the annual meeting. If it is a special meeting, it shall be called by the 

resolution designating the meeting and notice shall be given at the time 

and in the manner provided in IC 23-17-10. 

(c) The articles of acceptance approved by the board of directors shall 

be submitted to a vote of the members as provided in subsection (b). To 

be adopted, they must receive the affirmative votes of two-thirds (2/3) of 

the members entitled to vote. 

(d) Upon approval and adoption, the articles of acceptance: 

(1) shall be signed in duplicate, in the form prescribed by the 

secretary of state, by any current officer of the corporation and 

verified and affirmed subject to penalties for perjury; and 

(2) shall be presented in duplicate to the secretary of state at his 

office, accompanied by those fees prescribed by law. 



Chapter 5. Foreign Professional Corporations 

IC 23-1.5-5-1 Necessity of compliance; application of IC 23-1-50 

Sec. 1. A foreign professional corporation desiring to be admitted to 

render professional services in Indiana must: 

(1) comply with IC 23-1-49; and 

(2) comply with this article. 

IC 23-1-50 applies to the foreign professional corporation. 


IC 23-1.5-5-2 Revocation of certificate of admission 

Sec. 2. The certificate of admission of any foreign corporation admitted 

to render professional services in Indiana may be revoked at any time by 

the secretary of state: 

(1) as provided by IC 23-1-51; or 

(2) for failure to comply with this article. 


IC 23-1.5-4-6 Articles of acceptance; approval by secretary of state 

Sec. 6. Upon the presentation of the articles of acceptance, the 

secretary of state, if he finds they conform to the requirements of section 

5 of this chapter, shall endorse his approval upon both of the copies of 

the articles, and, when all fees have been paid as required by law, shall: 

(1) file one (1) copy of the articles in his office; 

(2) issue a certificate of acceptance; and 

(3) return to the corporation the remaining copy of the articles of 

acceptance, bearing the endorsement of his approval, together with 

the certificate of acceptance. 


IC 23-1.5-4-7 Certificate of acceptance; issuance 

Sec. 7. The acceptance becomes effective upon issuance of a 

certificate of acceptance by the secretary of state. The corporation is 

entitled to all rights and privileges and is subject to all penalties, liabilities, 

and restrictions provided by this article granted to or imposed upon 

corporations organized under this article. The articles of incorporation 

shall be considered to be amended to the extent, if any, that any 

provision or provisions of the articles are restated in the articles of 

acceptance. 


28


ARTICLE 4.6. SPECIAL PROVISIONS CONCERNING 

CERTAIN TRANSACTIONS 


Chapter 1. Interest Limits and Application of Other Laws 

IC 24-4.6-1-101 Money judgments 

Sec. 101. Except as otherwise provided by statute, interest on 

judgments for money whenever rendered shall be from the date of the 

return of the verdict or finding of the court until satisfaction at: 

(1) the rate agreed upon in the original contract sued upon, which 

shall not exceed an annual rate of eight percent (8%) even though a 

higher rate of interest may properly have been charged according to 

the contract prior to judgment; or 

(2) an annual rate of eight percent (8%) if there was no contract by 

the parties. 

(Formerly: Acts 1974, P.L.115, SEC.2.) As amended by Acts 1981, 


(1) at the rate agreed to by the parties or as provided in section 102 

of this chapter; and 

(2) according to the method described in subsection (b)(2). 


IC 24-4.6-1-201 Law applicable to consumer credit sales or leases 

Sec. 201. IC 24-5-2-21 through IC 24-5-2-24 apply to consumer credit 

sales, consumer leases, and assignees thereof. 

(Formerly: Acts 1974, P.L.115, SEC.2.) As amended by P.L.10-2006, 

SEC.21 and P.L.57-2006, SEC.21. 

IC 24-4.6-1-202 Applicability of IC 24-5-6 to sales at residence of 

consumer 

Sec. 202. The provisions of IC 1971, 24-5-6 concerning sales at the 

residence of a consumer shall not apply to consumer credit sales or 

consumer leases but shall apply to all other sales at the residence of a 

consumer. 

(Formerly: Acts 1974, P.L.115, SEC.2.) 

IC 24-4.6-1-102 Rate in absence of agreement 

Sec. 102. When the parties do not agree on the rate, interest on loans 

or forbearances of money, goods or things in action shall be at the rate of 

eight percent (8%) per annum until payment of judgment. 


IC 24-4.6-1-103 Date of accrual 

Sec. 103. Interest at the rate of eight percent (8%) per annum shall be 

allowed: 

(a) From the date of settlement on money due on any instrument in 

writing which does not specify a rate of interest and which is not 

covered by IC 1971, 24-4.5 or this article; 

(b) And from the date an itemized bill shall have been rendered and 

payment demanded on an account stated, account closed or for 

money had and received for the use of another and retained without 

his consent. 


IC 24-4.6-1-104 Computation of interest; methods 

Sec. 104. (a) The parties may agree upon any method of computing 

interest on a loan or a forbearance of money, goods, or things in action if 

the amount of interest on the unpaid balances of the principal does not 

exceed any limitation imposed by law upon charges incident to the 

extension of credit. 

(b) Methods of computing interest to which parties may agree under 

this section include the following: 

(1) Simple interest on the unpaid balances of the principal. 

(2) Simple interest on the outstanding balance of the principal to 

which is added past due installments of interest, the sum of which 

forms the principal upon which interest thereafter shall be computed. 

The addition to principal in this manner may occur repeatedly but not 

more frequently than daily. 

(c) Unless the parties agree otherwise, the method of computing 

interest agreed upon under this section continues to apply after the term 

of the loan or forbearance, including after the award of a judgment on the 

loan or forbearance, until all principal and interest and the amount of any 

judgment are paid. 

(d) If the parties do not agree on the method of computation, interest 

shall be computed and charged: 

29

INDANA CODE § 32-21-5 

Chapter 5. Residential Real Estate Sales Disclosure 

IC 32-21-5-1 Applicability of chapter 

Sec. 1. (a) This chapter applies only to a sale of, an exchange of, an 

installment sales contract for, or a lease with option to buy residential real 

estate that contains not more than four (4) residential dwelling units. 

(b) This chapter does not apply to the following: 

(1) Transfers ordered by a court, including transfers: 

(A) in the administration of an estate; 

(B) by foreclosure sale; 

(C) by a trustee in bankruptcy; 

(D) by eminent domain; 

(E) from a decree of specific performance; 

(F) from a decree of divorce; or 

(G) from a property settlement agreement. 

(2) Transfers by a mortgagee who has acquired the real estate at a 

sale conducted under a foreclosure decree or who has acquired the 

real estate by a deed in lieu of foreclosure. 

(3) Transfers by a fiduciary in the course of the administration of the 

decedent's estate, guardianship, conservatorship, or trust. 

(4) Transfers made from at least one (1) co-owner solely to at least 

one (1) other co-owner. 

(5) Transfers made solely to any combination of a spouse or an 

individual in the lineal line of consanguinity of at least one (1) of the 

transferors. 

(6) Transfers made because of the record owner's failure to pay any 

federal, state, or local taxes. 

(7) Transfers to or from any governmental entity. 

(8) Transfers involving the first sale of a dwelling that has not been 

inhabited. 

(9) Transfers to a living trust. 


IC 32-21-5-2 "Buyer" defined 

Sec. 2. As used in this chapter, "buyer" means a transferee in a 

transaction described in section 1 of this chapter. 


IC 32-21-5-3 "Closing" defined 

Sec. 3. As used in this chapter, "closing" means a transfer of an 

interest described in section 1 of this chapter by a deed, installment sales 

contract, or lease. 


IC 32-21-5-4 "Defect" defined 

Sec. 4. As used in connection with disclosure forms required by this 

chapter, "defect" means a condition that would have a significant adverse 

effect on the value of the property, that would significantly impair the 

health or safety of future occupants of the property, or that if not repaired, 

removed, or replaced would significantly shorten or adversely affect the 

expected normal life of the premises. 


IC 32-21-5-5 "Disclosure form" defined 

Sec. 5. As used in this chapter, "disclosure form" refers to a disclosure 

form prepared under section 8 of this chapter or a disclosure form that 

meets the requirements of section 8 of this chapter. 


IC 32-21-5-5.5 “Methamphetamine laboratory web site” defined 


IC 32-21-5-6 "Owner" defined 

Sec. 6. As used in this chapter, "owner" means the owner of residential 

real estate that is for sale, exchange, lease with an option to buy, or sale 

under an installment contract. 


IC 32-21-5-7 Disclosure form; contents 

Sec. 7. The Indiana real estate commission established by IC 25-34.1- 

2-1 shall adopt a specific disclosure form that contains the following: 

(1) Disclosure by the owner of the known condition of the following: 

(A) The foundation. 

(B) The mechanical systems. 

(C) The roof. 

(D) The structure. 

(E) The water and sewer systems. 

(F) Additions that may require improvements to the sewage 

disposal system. 

(G) Other areas that the Indiana real estate commission 

determines are appropriate. 

(2) A notice to the prospective buyer that contains substantially the 

following language: 

"The prospective buyer and the owner may wish to obtain 

professional advice or inspections of the property and provide for 

appropriate provisions in a contract between them concerning any 

advice, inspections, defects, or warranties obtained on the 

property.". 

(3) A notice to the prospective buyer that contains substantially the 

following language: 

"The representations in this form are the representations of the 

owner and are not the representations of the agent, if any. This 

information is for disclosure only and is not intended to be a part of 

any contract between the buyer and owner.". 

(4) A disclosure by the owner that an airport is located within a 

geographical distance from the property as determined by the 

Indiana real estate commission. The commission may consider the 

differences between an airport serving commercial airlines and an 

airport that does not serve commercial airlines in determining the 

distance to be disclosed. 


IC 32-21-5-8 Owner prepared disclosure form 

Sec. 8. An owner may prepare or use a disclosure form that contains 

the information required in the disclosure form under section 7 of this 

chapter and any other information the owner determines is appropriate. 


IC 32-21-5-9 Disclosure form distinguished from warranty 

Sec. 9. A disclosure form is not a warranty by the owner or the owner's 

agent, if any, and the disclosure form may not be used as a substitute for 

any inspections or warranties that the prospective buyer or owner may 

later obtain. 


IC 32-21-5-10 Disclosure form; presentation required before 

acceptance of offer 

Sec. 10. (a) An owner must complete and sign a disclosure form and 

submit the form to a prospective buyer before an offer for the sale of the 

residential real estate is accepted. 

(b) An appraiser retained to appraise the residential real estate for 

which the disclosure form has been prepared shall be given a copy of the 

30

form upon request. This subsection applies only to appraisals made for 

the buyer or an entity from which the buyer is seeking financing. 

(c) Before closing, an accepted offer is not enforceable against the 

buyer until the owner and the prospective buyer have signed the 

disclosure form. After closing, the failure of the owner to deliver a 

disclosure statement form to the buyer does not by itself invalidate a real 

estate transaction. 


IC 32-21-5-11 Owner liability for errors in form 

Sec. 11. The owner is not liable for any error, inaccuracy, or omission 

of any information required to be delivered to the prospective buyer 

under this chapter if: 

(1) the error, inaccuracy, or omission was not within the actual 

knowledge of the owner or was based on information provided by a 

public agency or by another person with a professional license or 

special knowledge who provided a written or oral report or opinion 

that the owner reasonably believed to be correct; and 

(2) the owner was not negligent in obtaining information from a third 

party and transmitting the information. 


IC 32-21-5-12 Matters arising after form delivered; requirement to 

disclose at settlement; unknown or unavailable information 

Sec. 12. (a) An owner does not violate this chapter if the owner 

subsequently discovers that the disclosure form is inaccurate as a result 

of any act, circumstance, information received, or agreement subsequent 

to the delivery of the disclosure form. However, at or before settlement, 

the owner is required to disclose any material change in the physical 

condition of the property or certify to the purchaser at settlement that the 

condition of the property is substantially the same as it was when the 

disclosure form was provided. 

(b) If at the time disclosures are required to be made under subsection 

(a) an item of information required to be disclosed is unknown or not 

available to the owner, the owner may state that the information is 

unknown or may use an approximation of the information if the 

approximation is clearly identified, is reasonable, is based on the actual 

knowledge of the owner, and is not used to circumvent the disclosure 

requirements of this chapter. 


IC 32-21-5-13 Disclosure of defect after offer accepted; buyer's right 

to nullify contract; return of deposits 

Sec. 13. (a) Notwithstanding section 12 of this chapter, if a prospective 

buyer receives a disclosure form or an amended disclosure form after an 

offer has been accepted that discloses a defect, the prospective buyer 

may after receipt of the disclosure form and within two (2) business days 

nullify the contract by delivering a written rescission to the owner or the 

owner's agent, if any. 

(b) A prospective buyer is not liable for nullifying a contract under this 

section and is entitled to a return of any deposits made in the transaction. 


IC 32-21-6-2 "Limited agent" defined 

Sec. 2. As used in this chapter, "limited agent" means an agent who, 

with the written and informed consent of all parties to a real estate 

transaction, is engaged by both the seller and buyer or both the landlord 

and tenant. 


IC 32-21-6-3 "Psychologically affected property" defined 

Sec. 3. As used in this chapter, "psychologically affected property" 

includes real estate or a dwelling that is for sale, rent, or lease and to 

which one (1) or more of the following facts or a reasonable suspicion of 

facts apply: 

(1) That an occupant of the property was afflicted with or died from a 

disease related to the human immunodeficiency virus (HIV). 

(2) That an individual died on the property. 

(3) That the property was the site of: 

(A) a felony under IC 35; 

(B) criminal gang (as defined in IC 35-45-9-1) activity; 

(C) the discharge of a firearm involving a law enforcement officer 

while engaged in the officer's official duties; or 

(D) the illegal manufacture or distribution of a controlled 

substance. 


IC 32-21-6-4 "Transferee" defined 

Sec. 4. As used in this chapter, "transferee" means a purchaser, 

tenant, lessee, prospective purchaser, prospective tenant, or prospective 

lessee of the real estate or dwelling. 


IC 32-21-6-5 Disclosure not required 

Sec. 5. An owner or agent is not required to disclose to a transferee 

any knowledge of a psychologically affected property in a real estate 

transaction. 


IC 32-21-6-6 Refusal to disclose; misrepresentation 

Sec. 6. An owner or agent is not liable for the refusal to disclose to a 

transferee: 

(1) that a dwelling or real estate is a psychologically affected 

property; or 

(2) details concerning the psychologically affected nature of the 

dwelling or real estate. 

However, an owner or agent may not intentionally misrepresent a fact 

concerning a psychologically affected property in response to a direct 

inquiry from a transferee. 


INDIANA CODE § 32-21-6 

Chapter 6. Psychologically Affected Properties 

IC 32-21-6-1 "Agent" defined 

Sec. 1. As used in this chapter, "agent" means a real estate agent or 

other person acting on behalf of the owner or transferee of real estate or 

acting as a limited agent. 


31

INDIANA CODE § 25-1 

ARTICLE 1. GENERAL PROVISIONS 


Chapter 1. Evidence of License Applicant’s Payment of Personal 

Property Taxes Required 

IC 25-1-1-1 Issuance of license; evidence of payment of personal 

property tax 

Sec. 1. It is unlawful for any board, officer, or person to issue any 

license, as defined in section 2 of this chapter, to any person who is a 

resident of this state, unless the applicant, at the time he applies for such 

license, submits, in addition to all other requirements prescribed by law, a 

receipt or other evidence showing that he has paid all his personal 

property taxes in full. "Other evidence" in the case of all licenses issued 

by the bureau of motor vehicles means a statement signed by the 

treasurer of the county in which the applicant is a resident that the 

applicant has paid all personal taxes assessed against him, including all 

delinquent personal property tax; or, if the applicant owns no personal 

property subject to taxation, a signed statement from the assessor of the 

county in which the applicant resides certifying that he has made an 

affidavit to the effect that he owes no delinquent personal property tax in 

any county in Indiana. 

(Formerly: Acts 1931, c.124, s.1; Acts 1941, c.61, s.1; Acts 1943, c.124, 

s.1; Acts 1953, c.208, s.1.) As amended by Acts 1978, P.L.2, SEC.2501. 

IC 25-1-1-2 License defined 

Sec. 2. The term "license" as used in this chapter shall be construed to 

mean and include motor vehicle registration licenses, certificates of title 

showing the ownership of any motor vehicle, except those classed as 

passenger vehicles. 

(Formerly: Acts 1931, c.124, s.2; Acts 1972, P.L.183, SEC.1.) 

IC 25-1-1-3 Repealed 




INDIANA CODE § 25-1-1.1 

Chapter 1.1. Effect of Criminal Convictions on Licensed or 

Registered Persons 

IC 25-1-1.1-1 Denial, revocation, or suspension of license or 

certificate of registration; conviction of crime 

Sec. 1. Except as provided under sections 2 through 3 of this chapter, 

a license or certificate of registration that an individual is required by law 

to hold to engage in a business, profession, or occupation may not be 

denied, revoked, or suspended because the applicant or holder has been 

convicted of an offense. The acts from which the applicant's or holder's 

conviction resulted may, however, be considered as to whether the 

applicant or holder should be entrusted to serve the public in a specific 

capacity. 

(Formerly: Acts 1973, P.L.249, SEC.1.) As amended by Acts 1978, P.L.2, 

SEC.2502; P.L.67-1990, SEC.6. 

IC 25-1-1.1-2 Suspension or revocation of license or certificate; 

conviction for drug related offense 

32 

Sec. 2. A board, a commission, or a committee may suspend or revoke 

a license or certificate issued under this title by the board, the 

commission, or the committee if the individual who holds the license or 

certificate is convicted of any of the following: 

(1) Possession of cocaine or a narcotic drug under IC 35-48-4-6. 

(2) Possession of methamphetamine under IC 35-48-4-6.1. 

(3) Possession of a controlled substance under IC 35-48-4- 7(a). 

(4) Fraudulently obtaining a controlled substance under IC 35-48-4- 

7(b). 

(5) Manufacture of paraphernalia as a Class D felony under IC 35- 

48-4-8.1(b). 

(6) Dealing in paraphernalia as a Class D felony under IC 35-48-4- 

8.5(b). 

(7) Possession of paraphernalia as a Class D felony under IC 35-48- 

4-8.3(b). 

(8) Possession of marijuana, hash oil, or hashish as a Class D felony 

under IC 35-48-4-11. 

(9) Maintaining a common nuisance under IC 35-48-4- 13. 

(10) An offense relating to registration, labeling, and prescription 

forms under IC 35-48-4-14. 

(11) Conspiracy under IC 35-41-5-2 to commit an offense listed in 

subdivisions (1) through (10). 

(12) Attempt under IC 35-41-5-1 to commit an offense listed in 


(13) An offense in any other jurisdiction in which the elements of the 

offense for which the conviction was entered are substantially similar 

to the elements of an offense described under subdivisions (1) 

through (12). 


P.L.17-2001, SEC.5; P.L.151-2006, SEC.10. 

IC 25-1-1.1-3 Suspension or revocation of license or certificate; 

conviction for additional drug related offenses 

Sec. 3. A board, a commission, or a committee shall revoke or 

suspend a license or certificate issued under this title by the board, the 

commission, or the committee if the individual who holds the license or 

certificate is convicted of any of the following: 

(1) Dealing in or manufacturing cocaine or a narcotic drug under 

IC 35-48-4-1. 

(2) Dealing in methamphetamine under IC 35-48-4-1.1. 

(3)Dealing in a schedule I, II, or III controlled substance under IC 35- 

48-4-2. 

(4) Dealing in a schedule IV controlled substance under IC 35-48-4- 

3. 

(5) Dealing in a schedule V controlled substance under IC 35- 48-4-4. 

(6) Dealing in a substance represented to be a controlled substance 

under IC 35-48-4-4.5. 

(7) Knowingly or intentionally manufacturing, advertising, distributing, 

or possessing with intent to manufacture, advertise, or distribute a 

substance represented to be a controlled substance under IC 35-48- 

4-4.6. 

(8) Dealing in a counterfeit substance under IC 35-48-4-5. 

(9) Dealing in marijuana, hash oil, or hashish under IC 35-48-4- 

10(b). 

(10) Conspiracy under IC 35-41-5-2 to commit an offense listed in 


(11) Attempt under IC 35-41-5-1 to commit an offense listed in 


(12) An offense in any other jurisdiction in which the elements of the 

offense for which the conviction was entered are substantially similar 

to the elements of an offense described under subdivisions (1) 

through (11). 

(13) A violation of any federal or state drug law or rule related to 

wholesale legend drug distributors licensed under IC 25-26-14.



INDIANA CODE § 25-1-1.2 

Chapter 1.2. Effect of Delinquency in Child Support Payments on 

Licensed or Registered Persons 

IC 25-1-1.2-1 "Applicant" defined 

Sec. 1. As used in this chapter, "applicant" means a person who 

applies for: 

(1) an unlimited license, certificate, registration, or permit; 

(2) a limited or probationary license, certificate, registration, or 

permit; 

(3) a temporary license, certificate, registration, or permit; or 

(4) an intern permit; 

issued by a board regulating a profession or an occupation. 


IC 25-1-1.2-2 "Board" defined 

Sec. 2. As used in this chapter, "board" means an entity that regulates 

occupations or professions under this title and the department of 

education established by IC 20-19-3-1. 

As added by P.L.133-1995, SEC.19. Amended by P.L. 1-2005, SEC. 

191; P.L. 246-2005, SEC. 210. 

IC 25-1-1.2-3 "Bureau" defined 

Sec. 3. As used in this chapter, "bureau" means the child support 

bureau established by IC 31-25-3-1. 


SEC.157. 

IC 25-1-1.2-4 “Delinquent" defined 

Sec. 4. As used in this chapter, "delinquent" means at least: 

(1) two thousand dollars ($2,000); or 

(2) three (3) months; 

past due on payment of court ordered child support. 


IC 25-1-1.2-5 "License" defined 

Sec. 5. As used in this chapter, "license" has the meaning set forth in 

IC 25-1-2-6. 


IC 25-1-1.2-6 "Practitioner" defined 

Sec. 6. As used in this chapter, "practitioner" means a person that 

holds: 



permit; 

(3) a temporary license, certificate, registration, or permit; or 

(4) an intern permit; 

issued by a board regulating a profession or an occupation. 


IC 25-1-1.2-7 Order for suspension or denial of license; notice to 

practitioner; contents; reinstatement 

Sec. 7. (a) Upon receiving an order of a court issued under IC 31-14- 

12-5 or IC 31-16-12-8 (or IC 31-1-11.5-13(k) or IC 31-6-6.1-16(k) before 

their repeal), the board shall: 

(1) suspend the license of the practitioner; or 

(2) deny the application of the applicant; 

33 

who is the subject of the order. 

(b) Upon receiving an order of a court issued under IC 31-14-12-5 or 

IC 31-16-12-8 (or IC 31-1-11.5-13(k) or IC 31-6-6.1-16(k) before their 

repeal), the board shall promptly mail a notice to the last known address 

of the person who is the subject of the order, stating the following: 

(1) That the practitioner's license has been suspended, beginning 

five (5) business days after the date the notice is mailed, and that 

the suspension will terminate ten (10) business days after the board 

receives an order allowing reinstatement from the court that issued 

the suspension order. 

(2) That the practitioner has the right to petition for reinstatement of 

the practitioner's license to the court that issued the order for 

suspension. 

(c) The board may not reinstate a license suspended under this section 

until the board receives an order allowing reinstatement from the court 

that issued the order for suspension. 


P.L.1-1997, SEC.109. 

IC 25-1-1.2-8 Notice of delinquency; contents; delinquency finding; 

probationary status; suspension; reinstatement 

Sec. 8. (a) The board shall, upon receiving an order from the bureau 

under IC 31-25-4-32(e), send a notice to the practitioner identified by the 

bureau that includes the following: 

(1) Specifies that the practitioner is delinquent and is subject to an 

order placing the practitioner on probationary status. 

(2) Describes the amount of child support that the practitioner is in 

arrears. 

(3) Explains that unless the practitioner contacts the bureau and: 

(A) pays the practitioner's child support arrearage in full; 

(B) establishes a payment plan with the bureau to pay the 

arrearage, which must include an income withholding order under 

IC 31-16-15-2 or IC 31-16-15-2.5; or 

(C) requests a hearing under IC 31-25-4-33; 

within twenty (20) days after the date the notice is mailed, the board 

shall place the practitioner on probationary status. 

(4) Explains that the practitioner may contest the bureau's 

determination that the practitioner is delinquent and subject to an 

order placing the practitioner on probationary status by making 

written application to the bureau within twenty (20) days after the 

date the notice is mailed. 

(5) Explains that the only basis for contesting the bureau's 

determination that the practitioner is delinquent and subject to an 

order placing the practitioner on probationary status is a mistake of 

fact. 

(6) Explains the procedures to: 

(A) pay the practitioner's child support arrearage in full; 

(B) establish a payment plan with the bureau to pay the arrearage, 

which must include an income withholding order under IC 31-16- 

15-2 or IC 31-16-15-2.5; 

(C) request a hearing under IC 31-25-4-33. 

(7) Explains that the probation will terminate ten (10) business 

days after the board receives a notice from the bureau that the 

practitioner has: 

(A) paid the practitioner's child support arrearage in full; or 

(B) established a payment plan with the bureau to pay the 

arrearage which includes an income withholding order under 

IC 31-16-15-2 or IC 31-16-15-2.5. 

(b) If the board is advised by the bureau that the practitioner either 

requested a hearing and failed to appear or appeared and was found to 

be delinquent, the board shall promptly mail a notice to the practitioner 

who is the subject of the order stating the following: 

(1) That the practitioner's license has been placed on probationary 

status, beginning five (5) business days after the date the notice is

mailed, and that the probation will terminate ten (10) business days 

after the board receives a notice from the bureau that the person 

has: 

(A) paid the person's child support arrearage in full; or 

(B) established a payment plan with the bureau to pay the 

arrearage which includes an income withholding order under 

IC 31-16-15-2 or IC 31-16-15-2.5. 

(2) That if the board is advised by the bureau that the practitioner 

whose license has been placed on probationary status has failed to: 

(A) pay the person's child support arrearage in full; or 

(B) establish a payment plan with the bureau to pay the arrearage 

which includes an income withholding order under IC 31-16-15-2 

or IC 31-16-15-2.5; 

within twenty (20) days after the date the notice is mailed, the board 

shall suspend the practitioner's license. 

(c) If the board is advised by the bureau that the practitioner whose 

license has been placed on probationary status has failed to: 

(1) pay the person's child support arrearage in full; or 

(2) establish a payment plan with the bureau to pay the arrearage 

which includes an income withholding order under IC 31-16-15-2 IC 

31-16-15-2.5; 

within twenty (20) days after the date the notice is mailed, the board shall 

suspend the practitioner's license. 

(d) The board may not reinstate a license or permit placed on probation 

or suspended under this section until the board receives a notice from 

the bureau that the person has: 

(1) paid the person's child support arrearage in full; or 

(2) established a payment plan with the bureau to pay the arrearage 

which includes an income withholding order under IC 31-16-15-2 or 

IC 31-16-15-2.5. 



IC 25-1-1.2-9 Repealed 


IC 25-1-1.2-10 Repealed 



Chapter 2. Renewal of Licenses Granted by State 

Agencies. Notice of Expiration 

IC 25-1-2-1 Declaration of intent 

Sec. 1. It is the declared intent of the general assembly by the 

enactment of this law to require those agencies which are authorized to 

issue the licenses designated in section 2.1 of this chapter, in the 

interests of efficiency and economy in the administration of government, 

to issue such designated permits, licenses, certificates of registration, 

and other evidences of compliance with statute or regulation, and 

renewals thereof, for periods of two (2) years duration rather than upon 

an annual basis, and at the time of issuance or reissuance, or at the time 

designated by law for the collection of fees therefore, to require the 

payment of such fees for a period of two (2) years rather than for one (1) 

year. 

(Formerly: Acts 1961, c.79, s.1.) As amended by P.L.1-1990, SEC.246. 



IC 25-1-2-2.1 Two year or longer period for certain licenses 

Sec. 2.1. Rather than being issued annually, the following permits, 

34 

licenses, certificates of registration, or evidences of authority granted by 

a state agency must be issued for a period of two (2) years or for the 

period specified in the article under which the permit, license, certificate 

of registration, or evidence of authority is issued if the period specified in 

the article is longer than two (2) years: 

(1) Certified public accountants, public accountants, and 

accounting practitioners. 

(2) Architects and landscape architects. 

(3) Dry cleaners. 

(4) Professional engineers. 

(5) Land surveyors. 

(6) Real estate brokers. 

(7) Real estate agents. 

(8) Security dealers' licenses issued by the securities commissioner. 

(9) Dental hygienists. 

(10) Dentists. 

(11) Veterinarians. 

(12) Physicians. 

(13) Chiropractors. 

(14) Physical therapists. 

(15) Optometrists. 

(16) Pharmacists and assistants, drugstores or pharmacies. 

(17) Motels and mobile home community licenses. 

(18) Nurses. 

(19) Podiatrists. 

(20) Occupational therapists and occupational therapy assistants. 

(21) Respiratory care practitioners. 

(22) Social workers, marriage and family therapists, and mental 

health counselors. 

(23) Real estate appraiser licenses and certificates issued by the 

real estate appraiser licensure and certification board. 

(24) Wholesale legend drug distributors. 

(25) Physician assistants. 

(26) Dietitians. 

(27) Hypnotists. 

(28) Athlete agents. 

(29) Manufactured home installers. 

(30) Home inspectors. 

(31) Massage therapists. 





P.L.54-2001, SEC.3; P.L.162-2002, SEC.1; P.L.145-2003, SEC.1; P.L. 

87-2005, SEC. 31; P.L.200-2007, SEC.2; P.L.3-2008, SEC.175. 

IC 25-1-2-3 Authorization to issue and reissue two year licenses 

Sec. 3. Effective October 1, 1961, such licensing agencies as are 

authorized to issue any of the foregoing shall issue and reissue such 

licenses and collect the fees for the same on the basis of two (2) years 

and the dates by month and day which govern the issuance or 

reissuance of licenses for one (1) year shall govern the issuance or 

reissuance of licenses for two (2) years; provided, that entire fees for a 

two (2) year period shall be payable before issuance thereof on the day 

and month designated for payment of fees for one (1) year licenses. 

(Formerly: Acts 1961, c.79, s.3.) As amended by Acts 1982, P.L.154, 

SEC.1. 

IC 25-1-2-4 Rebates and proration of fees 

Sec. 4. Rebates and proration of fees for fractions of a biennium shall 

be allowed only with respect to the second year of such license if claim 

be made therefor before the expiration of the first year for which the 

license was issued. 

(Formerly: Acts 1961, c.79, s.4.)

IC 25-1-2-5 Rules and regulations 

Sec. 5. Notice shall be given and forms prepared by such licensing 

agencies as necessary to execute the provisions of this chapter and in 

order to expedite and effectuate the conversion from one (1) year 

licensing periods to those of two (2) years, such licensing agencies may 

adopt and promulgate such rules and regulations they may deem 

necessary in the manner prescribed by law. 

(Formerly: Acts 1961, c.79, s.5.) As amended by Acts 1982, P.L.154, 

SEC.2. 

IC 25-1-2-6 Definitions; application of section; notice to licensee of 

need to renew 

Sec. 6. (a) As used in this section, "license" includes all occupational 

and professional licenses, registrations, permits, and certificates issued 

under the Indiana Code, and "licensee" includes all occupational and 

professional licensees, registrants, permittees, and certificate holders 

regulated under the Indiana Code. 

(b) This section applies to the following entities that regulate 

occupations or professions under the Indiana Code: 

(1) Indiana board of accountancy. 

(2) Indiana grain buyers and warehouse licensing agency. 

(3) Indiana auctioneer commission. 

(4) Board of registration for architects and landscape architects. 

(5) State board of barber examiners. 

(6) State board of cosmetology examiners. 

(7) Medical licensing board of Indiana. 

(8) Secretary of state. 

(9) State board of dentistry. 

(10) State board of funeral and cemetery service. 

(11) Worker's compensation board of Indiana. 

(12) Indiana state board of health facility administrators. 

(13) Committee of hearing aid dealer examiners. 

(14) Indiana state board of nursing. 

(15) Indiana optometry board. 

(16) Indiana board of pharmacy. 

(17) Indiana plumbing commission. 

(18) Board of podiatric medicine. 

(19) Private investigator and security guard licensing board. 

(20) State board of registration for professional engineers. 

(21) Board of environmental health specialists. 

(22) State psychology board. 

(23) Indiana real estate commission. 

(24) Speech-language pathology and audiology board. 

(25) Department of natural resources. 

(26) State boxing commission. 

(27) Board of chiropractic examiners. 

(28) Mining board. 

(29) Indiana board of veterinary medical examiners. 

(30) State department of health. 

(31) Indiana physical therapy committee. 

(32) Respiratory care committee. 

(33) Occupational therapy committee. 

(34) Social worker, marriage and family therapist, and mental 

health counselor board. 

(35) Real estate appraiser licensure and certification board. 

(36) State board of registration for land surveyors. 

(37) Physician assistant committee. 

(38) Indiana dietitians certification board. 

(39) Indiana hypnotist committee. 

(40) Attorney general (only for the regulation of athlete agents). 

(41) Manufactured home installer licensing board. 

(42) Home inspectors licensing board. 

(43) State board of massage therapy. 

35 

(44) Any other occupational or professional agency created 

after June 30, 1981. 

(c) Notwithstanding any other law, the entities included in subsection 

(b) shall send a notice of the upcoming expiration of a license to each 

licensee at least sixty (60) days prior to the expiration of the license. The 

notice must inform the licensee of the need to renew and the requirement 

of payment of the renewal fee. If this notice of expiration is not sent by 

the entity, the licensee is not subject to a sanction for failure to renew if, 

once notice is received from the entity, the license is renewed within 

forty-five (45) days of the receipt of the notice. 








SEC.17; P.L.147-1997, SEC.6; P.L.253-1997(ss), SEC.22; P.L.24-1999, 

SEC.2; P.L.82-2000, SEC.2; P.L.54-2001, SEC.4; P.L.162-2002, SEC.2; 


P.L.3-2008, SEC.176. 

IC 25-1-2-7 Application of IC 25-1-2-6 

Sec. 7. Section 6 of this chapter applies to the mining board (IC 22-10- 

1.5-2). 


IC 25-1-2-8 Application of chapter; fees 

Sec. 8. This chapter applies to the imposition and collection of fees 

under the following: 

IC 14-24-10 

IC 16-19-5-2 

IC 25-30-1-17 

IC 33-42-2-1. 


P.L.1-1995, SEC.69; P.L.98-2004, SEC.98. 


(Repealed by P.L. 194-2005, SEC. 87.) 


Chapter 3. Civil Immunity of Regulatory Agencies 

IC 25-1-3-1 Definitions 

Sec. 1. (a) As used in this chapter, the term "regulatory board" means 

any state board, commission, or state agency which licenses persons in 

order to regulate the practice of a particular profession or professions. 

(b) As used in this chapter, the term "board members" means 

members of a regulatory board. 

(c) As used in this chapter, the term "secretary" means the executive 

secretary or other person charged with the administration of the affairs of 

a regulatory board. 


IC 25-1-3-2 Extent of immunity from civil liability 

Sec. 2. The board members, the secretary, his staff, counsel, 

investigators and hearing officer of every regulatory board, except as 

provided in section 4 of this chapter, shall be immune from civil liability for 

damages for conduct within the scope and arising out of the performance 

of their duties. This section shall not be construed to include civil actions 

for damages not directly related to the investigative process and shall

apply only to the process for the finding of fact of the regulatory board. 


IC 25-1-3-3 Immunity from civil liability; statements in course of 

investigatory hearing or review proceedings 

Sec. 3. Any person shall be immune from civil liability for damages for 

any sworn or written statements, made without malice, and transmitted to 

the regulatory board, executive secretary, or his staff, or made in the 

course of investigatory, hearing or review proceedings. 


IC 25-1-3-4 Regulatory boards covered 

Sec. 4. The provisions of this chapter extend to every regulatory board 

of the state except the disciplinary commission of the supreme court of 

Indiana which is protected under IC 1971, 33-2-3-1. 



Chapter 4. Continuing Education 

IC 25-1-4-0.2 “Approved organization” defined 

Sec. 0.2. As used in this chapter, "approved organization" refers to the 

following: 

(1) United States Department of Education. 

(2) Council on Post-Secondary Education. 

(3) Joint Commission on Accreditation of Hospitals. 

(4) Joint Commission on Healthcare Organizations. 

(5) Federal, state, and local government agencies. 

(6) A college or other teaching institution accredited by the United 

States Department of Education or the Council on Post-Secondary 

Education. 

(7) A national organization of practitioners whose members 

practicing in Indiana are subject to regulation by a board or agency 

regulating a profession or occupation under this title. 

(8) A national, state, district, or local organization that operates as an 

affiliated entity under the approval of an organization listed in 


(9) An internship or a residency program conducted in a hospital that 

has been approved by an organization listed in subdivisions (1) 

through (7). 

(10) Any other organization or individual approved by the board. 


IC 25-1-4-0.3 "Board" defined 

Sec. 0.3. As used in section 3 of this chapter, "board" means any of the 

following: 

(1) Indiana board of accountancy (IC 25-2.1-2-1). 

(2) Board of registration for architects and landscape architects (IC 

25-4-1-2). 

(3) Indiana athletic trainers board (IC 25-5.1-2-1). 

(4) Indiana auctioneer commission (IC 25-6.1-2-1). 

(5) State board of barber examiners (IC 25-7-5-1). 

(6) State boxing commission (IC 25-9-1). 

(7) Board of chiropractic examiners (IC 25-10-1). 

(8) State board of cosmetology examiners (IC 25-8-3-1). 

(9) State board of dentistry (IC 25-14-1). 

(10) Indiana dietitians certification board (IC 25-14.5-2-1). 

(11) State board of registration for professional engineers (IC 25-31- 

1-3). 

(12) Board of environmental health specialists (IC 25-32). 

(13) State board of funeral and cemetery service (IC 25-15-9). 

36 

(14) Indiana state board of health facility administrators (IC 25-19-1). 

(15) Committee of hearing aid dealer examiners (IC 25-20-1-1.5). 

(16) Home inspectors licensing board (IC 25-20.2-3-1). 

(17) Indiana hypnotist committee (IC 25-20.5-1-7). 

(18) State board of registration for land surveyors (IC 25-21.5-2-1). 

(19) Manufactured home installer licensing board (IC 25-23.7). 

(20) Medical licensing board of Indiana (IC 25-22.5-2). 

(21) Indiana state board of nursing (IC 25-23-1). 

(22) Occupational therapy committee (IC 25-23.5). 

(23) Indiana optometry board (IC 25-24). 

(24) Indiana board of pharmacy (IC 25-26). 

(25) Indiana physical therapy committee (IC 25-27-1). 

(26) Physician assistant committee (IC 25-27.5). 

(27) Indiana plumbing commission (IC 25-28.5-1-3). 

(28) Board of podiatric medicine (IC 25-29-2-1). 

(29) Private investigator and security guard licensing board (IC 25- 

30-1-5.2). 

(30) State psychology board (IC 25-33). 

(31) Indiana real estate commission (IC 25-34.1-2). 

(32) Real estate appraiser licensure and certification board (IC 25- 

34.1-8). 

(33) Respiratory care committee (IC 25-34.5). 

(34) Social worker, marriage and family therapist, and mental health 

counselor board (IC 25-23.6). 

(35) Speech-language pathology and audiology board (IC 25-35.6- 

2). 

(36) Indiana board of veterinary medical examiners (IC 25-38.1-2). 


P.L.185-2007, SEC.2; P.L.2-2008, SEC.52. 

IC 25-1-4-0.5 “Continuing education” defined 

Sec. 0.5. As used in this chapter, "continuing education" means an 

orderly process of instruction: 

(1) that is approved by: 

(A) an approved organization or the board for a profession or 

occupation other than a real estate appraiser; or 

(B) for a real estate appraiser: 

(i) the Appraiser Qualifications Board, under the regulatory 

oversight of the Appraisal Subcommittee established under Title 

XI of the Financial Institutions Reform, Recovery and 

Enforcement Act of 1989; or 

(ii) the real estate appraiser licensure and certification board 

established under IC 25-34.1-8 for specific courses and course 

subjects, as determined by the real estate appraiser licensure 

and certification board; and 

(2) that is designed to directly enhance the practitioner's knowledge 

and skill in providing services relevant to the practitioner's profession 

or occupation. 


IC 25-1-4-0.6 "Practitioner" defined 

Sec. 0.6. As used in section 3 of this chapter, "practitioner" means an 

individual who holds: 

(1) an unlimited license, certificate, or registration; 

(2) a limited or probationary license, certificate, or registration; 

(3) a temporary license, certificate, registration, or permit; 

(4) an intern permit; or 

(5) a provisional license; 

issued by the board regulating the profession in question. 


IC 25-1-4-1 Requirement 

Sec. 1. No board or agency regulating a profession or occupation 

under this title or under IC 16 or IC 22 may require continuing education

as a condition of certification, registration, or licensure unless so 

specifically authorized or mandated by statute. 


SEC.53. 

IC 25-1-4-2 Promotion 

Sec. 2. A board or agency regulating a profession or occupation under 

this title or under IC 16 or IC 22 may cooperate with members of the 

profession or occupation it regulates to promote continuing education 

within the profession or occupation. 


SEC.54. 

IC 25-1-4-3 Sworn statements of compliance; retention of copies of 

certificates of completion; audits 

Sec. 3. (a) Notwithstanding any other law, a board that is specifically 

authorized or mandated to require continuing education as a condition to 

renew a registration, certification, or license must require a practitioner to 

comply with the following renewal requirements: 

(1) The practitioner shall provide the board with a sworn statement 

executed by the practitioner that the practitioner has fulfilled the 

continuing education requirements required by the board. 

(2) The practitioner shall retain copies of certificates of completion 

for continuing education courses for three (3) years from the end of 

the licensing period for which the continuing education applied. The 

practitioner shall provide the board with copies of the certificates of 

completion upon the board's request for a compliance audit. 

(b) Following every license renewal period, the board shall randomly 

audit for compliance more than one percent (1%) but less than ten 

percent (10%) of the practitioners required to take continuing education 

courses. 


IC 25-1-4-3.2 Distance learning methods 

Sec. 3.2. A board or agency regulating a profession or occupation 

under this title or under IC 16 or IC 22 shall require that at least one-half 

(1/2) of all continuing education requirements must be allowed by 

distance learning methods, except for doctors, nurses, chiropractors, 

optometrists and dentists. 


IC 25-1-4-4 Hardship waiver 

Sec. 4. A board, a commission, a committee, or an agency regulating a 

profession or an occupation under this title or under IC 16 or IC 22 may 

grant an applicant a waiver from all or part of the continuing education 

requirement for a renewal period if the applicant was not able to fulfill the 

requirement due to a hardship that resulted from any of the following: 

(1) Service in the armed forces of the United States during a 

substantial part of the renewal period. 

(2) An incapacitating illness or injury. 

(3) Other circumstances determined by the board or agency. 


IC 25-1-4-5 Failure to comply; license suspension; penalties; 

reinstatement requirements 

Sec. 5. (a) Notwithstanding any other law, if the board determines that 

a practitioner has not complied with this chapter or IC 25-1-8-6 at the 

time that the practitioner applies for license renewal or reinstatement or 

after an audit conducted under section 3 of this chapter, the board shall 

do the following: 

(1) Send the practitioner notice of noncompliance by certified mail. 

(2) As a condition of license renewal or reinstatement, require the 

practitioner to comply with subsection (b). 

(3) For license renewal, issue a conditional license to the practitioner 

that is effective until the practitioner complies with subsection (b). 

(b) Upon receipt of a notice of noncompliance under subsection (a), a 

practitioner shall do either of the following: 

(1) If the practitioner believes that the practitioner has complied with 

this chapter or IC 25-1-8-6, if applicable, within twenty-one (21) days 

of receipt of the notice, send written notice to the board requesting a 

review so that the practitioner may submit proof of compliance. 

(2) If the practitioner does not disagree with the board's 

determination of noncompliance, do the following: 

(A) Except as provided in subsection (d), pay to the board a civil 

penalty not to exceed one thousand dollars ($1,000) within twentyone 

(21) days of receipt of the notice. 

(B) Acquire, within six (6) months after receiving the notice, the 

number of credit hours needed to achieve full compliance. 

(C) Comply with all other provisions of this chapter. 

(c) If a practitioner fails to comply with subsection (b), the board shall 

immediately suspend or refuse to reinstate the license of the practitioner 

and send notice of the suspension or refusal to the practitioner by 

certified mail. 

(d) If the board determines that a practitioner has knowingly or 

intentionally made a false or misleading statement to the board 

concerning compliance with the continuing education requirements, in 

addition to the requirements under this section the board may impose a 

civil penalty of not more than five thousand dollars ($5,000) under 

subsection (b)(2)(A). 

(e) The board shall: 

(1) reinstate a practitioner’s license; or 

(2) renew the practitioner's license in place of the conditional license 

issued under subsection (a)(3); 

if the practitioner supplies proof of compliance with this chapter under 

subsection (b)(1) or IC 25-1-8-6, if applicable. 


SEC.17. 

IC 25-1-4-6 Failure to comply; denial of license renewal; penalties 

Sec. 6. (a) Notwithstanding any other law, if at the time a practitioner 

applies for license renewal or reinstatement or after an audit conducted 

under section 3 of this chapter, the board determines that the practitioner 

has failed to comply with this chapter or IC 25-1-8-6, if applicable, and 

the practitioner has previously received a notice of noncompliance under 

section 5(a) of this chapter during the preceding license period, the board 

shall do the following: 

(1) Provide the practitioner notice of noncompliance by certified mail. 

(2) Deny the practitioner's application for license renewal or 

reinstatement. 

(b) The board shall reinstate a license not renewed under subsection 

(a) upon occurrence of the following: 

(1) Payment by a practitioner to the board of a civil penalty 

determined by the board, but not to exceed one thousand dollars 

($1,000). 

(2) Acquisition by the practitioner of the number of credit hours 

required to be obtained by the practitioner during the relevant license 

period. 

(3) The practitioner otherwise complies with this chapter. 


SEC.18. 

IC 25-1-4-7 Credit Hours 

Sec. 7. Credit hours acquired by a practitioner under section 5(b)(2) or 

6(b)(2) of this chapter may not apply to the practitioner's credit hour 

requirement for the license period in which the credit hours are acquired. 


37

IC 25-1-4-8 Rules 

Sec. 8. The board may adopt rules under IC 4-22-2 to implement this 

chapter. 



Chapter 6. Professional Licensing Agency 

IC 25-1-6-1 Legislative intent 

Sec. 1. The centralization of staff, functions, and services 

contemplated by this chapter shall be done in such a way as to enhance 

the licensing agency's ability to: 

(1) make maximum use of data processing as a means of 

more efficient operation; 

(2) provide more services and carry out functions of superior 

quality; and 

(3) ultimately and significantly reduce the number of staff 

needed to provide these services and carry out these 

functions. 


SEC.2; P.L. 194-2005, SEC. 1. 


Sec. 2. As used in this chapter: 

"Board" means any agency, board, advisory committee, or 

group included in section 3 of this chapter. 

"Licensing agency" means the Indiana professional licensing 

agency created by IC 25-1-5-3. 


SEC.3; P.L. 206-2005, SEC. 8. 

IC 25-1-6-3 Indiana professional licensing agency; functions, 

duties, and responsibilities 

Sec. 3. (a) The licensing agency shall perform all administrative 

functions, duties, and responsibilities assigned by law or rule to the 

executive director, secretary, or other statutory administrator of the 

following: 


(2) Board of registration for architects and landscape architects 

(IC 25-4-1-2). 






(8) State board of registration for professional engineers (IC 25-31-1- 

3). 


(10) Indiana real estate commission (IC 25-34.1). 


34.1-8-1). 


30-1-5.2). 




(16) State board of massage therapy (IC 25-21.8-2-1). 

(b) Nothing in this chapter may be construed to give the licensing 

agency policy making authority, which remains with each board. 


P.L.113, SEC.10; P.L.132-1984, SEC.4; P.L.246-1985, SEC.14; P.L.257- 

1987, SEC.14; P.L.234-1989, SEC.2; P.L.186-1990, SEC.4; P.L.23- 

38 

1991, SEC.8; P.L.48-1991, SEC.15; P.L.1-1992, SEC.129; P.L.30-1993, 


SEC.3; P.L.162-2002, SEC.3; P.L.145-2003, SEC.3; P.L. 194-2005, 

SEC. 2; P.L. 206-2005, SEC. 9; P.L.185-2007, SEC.3; P.L.200-2007, 

SEC.4; P.L.3-2008, SEC.177. 

IC 25-1-6-4 Additional duties and functions; staff 

Sec. 4. (a) The licensing agency shall employ necessary staff, 

including specialists and professionals, to carry out the administrative 

duties and functions of the boards, including but not limited to: 

(1) notice of board meetings and other communication 

services; 

(2) recordkeeping of board meetings, proceedings, and 

actions; 

(3) recordkeeping of all persons or individuals licensed, 

regulated, or certified by a board; 

(4) administration of examinations; and 

(5) administration of license or certificate issuance or renewal 

(b) In addition, the licensing agency: 

(1) shall prepare a consolidated statement of the budget 

requests of all the boards in section 3 of this chapter; 

(2) may coordinate licensing or certification renewal cycles, 

examination schedules, or other routine activities to efficiently 

utilize licensing agency staff, facilities, and transportation 

resources, and to improve accessibility of board functions to 

the public; and 

(3) may consolidate, where feasible, office space, recordkeeping, 

and data processing services. 

(c) In administering the renewal of licenses or certificates under this 

chapter, the licensing agency shall issue a sixty (60) day notice of 

expiration to all holders of a license or certificate. The notice must inform 

the holder of a license or certificate of the requirements to: 

(1) renew the license or certificate; and 

(2) pay the renewal fee. 

(d) If the licensing agency fails to send notice of expiration under 

subsection (c), the holder of the license or certificate is not subject to a 

sanction for failure to renew if the holder renews the license or certificate 

not more than forty-five (45) days after the holder receives the notice 

from the licensing agency. 

(e) The licensing agency may require an applicant for a license or 

certificate renewal to submit evidence showing that the applicant: 

(1) meets the minimum requirements for licensure or 

certification; and 

(2) is not in violation of: 

(A) the law regulating the applicant's profession; or 

(B) rules adopted by the board regulating the applicant's 

profession. 

(f) The licensing agency may delay renewing a license or certificate for 

not more than ninety (90) days after the renewal date to permit the board 

to investigate information received by the licensing agency that the 

applicant for renewal may have committed an act for which the applicant 

may be disciplined. If the licensing agency delays renewing a license or 

certificate, the licensing agency shall notify the applicant that the 

applicant is being investigated. Except as provided in subsection (g), the 

board shall do one (1) of the following before the expiration of the ninety 

(90) day period: 

(1) Deny renewal of the license or certificate following a personal 

appearance by the applicant before the board. 

(2) Renew the license or certificate upon satisfaction of all other 

requirements for renewal. 

(3) Renew the license and file a complaint under IC 25-1-7. 

(4) Request the office of the attorney general to conduct an 

investigation under subsection (h) if, following a personal 

appearance by the applicant before the board, the board has good

cause to believe that the applicant engaged in activity described in 

IC 25-1-11-5. 

(5) Upon agreement of the applicant and the board and following a 

personal appearance by the applicant before the board, renew the 

license or certificate and place the applicant on probation status 

under IC 25-1-11-12. 

(g) If an applicant fails to appear before the board under subsection (f), 

the board may take action as provided in subsection (f)(1), (f)(2), or (f)(3). 

(h) If the board makes a request under subsection (f)(4), the office of 

the attorney general shall conduct an investigation. Upon completion of 

the investigation, the office of the attorney general may file a petition 

alleging that the applicant has engaged in activity described in IC 25-1- 

11-5. If the office of the attorney general files a petition, the board shall 

set the matter for a public hearing. If, after a public hearing, the board 

finds the applicant violated IC 25-1-11-5, the board may impose 

sanctions under IC 25-1-11-12. The board may delay renewing a license 

or certificate beyond ninety (90) days after the renewal date until a final 

determination is made by the board. The applicant's license or certificate 

remains valid until the final determination of the board is rendered unless 

the renewal is: 

(1) denied; or 

(2) summarily suspended under IC 25-1-11-13. 

(i) The license or certificate of the applicant for license renewal remains 

valid during the ninety (90) day period unless the license or certificate is 

denied following a personal appearance by the applicant before the 

board before the end of the ninety (90) day period. If the ninety (90) day 

period expires without action by the board, the license or certificate shall 

be automatically renewed at the end of the ninety (90) day period. 

(j) Notwithstanding any other law, the licensing agency may stagger 

license or certificate renewal cycles. 

(k) An application for a license or certificate is abandoned without an 

action by the board if the applicant does not complete the requirements 

for obtaining the license or certificate not more than one (1) year after the 

date on which the application was filed. However, the board may, for 

good cause shown, extend the validity of the application for additional 

thirty (30) day periods. An application submitted after the abandonment 

of an application is considered a new application. 


SEC.5; P.L. 194-2005, SEC. 3. 

IC 25-1-6-5 Executive director 

Sec. 5. (a) The licensing agency shall be administered by an executive 

director appointed by the governor who shall serve at the will and 

pleasure of the governor. 

(b) The executive director must be qualified by experience and training. 

(c) The term "executive director" or "secretary", or any other statutory 

term for the administrative officer of a board listed in section 3 of this 

chapter, means the executive director of the licensing agency or the 

executive director’s designee. 

(d) The executive director is the chief fiscal officer of the licensing 

agency and is responsible for hiring of all staff and for procurement of all 

services and supplies in accordance with IC 5-22. The executive director 

and the employees of the licensing agency are subject to IC 4-15-1.8 but 

are not under IC 4-15-2. The executive director may appoint no more 

than three (3) deputy directors, who must be qualified to work for the 

boards which are served by the licensing agency. 

(e) The executive director shall execute a bond payable to the state, 

with surety to consist of a surety or guaranty corporation qualified to do 

business in Indiana, in an amount fixed by the state board of accounts, 

conditioned upon the faithful performance of duties and the accounting 

for all money and property that come into the executive director's hands 

or under the executive director's control. The executive director may 

likewise cause any employee of the licensing agency to execute a bond if 

that employee receives, disburses, or in any way handles funds or 

39 

property of the licensing agency. The costs of any such bonds shall be 

paid from funds available to the licensing agency. 

(f) The executive director may present to the general assembly 

legislative recommendations regarding operations of the licensing 

agency and the boards it serves, including adoption of four (4) year 

license or certificate renewal cycles wherever feasible. 

(g) Upon the request of a board or commission, the executive director 

may execute orders, subpoenas, continuances, and other legal 

documents on behalf of the board or commission. 

(h) Upon the request of a board or commission, the executive director 

may provide advice and technical assistance on issues that may be 

presented to the board or commission. 


P.L.113, SEC.11; P.L.132-1984, SEC.6; P.L.49-1997, SEC.64; P.L. 194- 

2005, SEC. 4. 

IC 25-1-6-5.5 Appeal of license renewal denial 

Sec. 5.5. A person who has a license renewal denied by a board listed 

in section 3 of this chapter may file an appeal of the denial in accordance 

with IC 4-21.5-3. 


P.L. 194-2005, SEC. 5. 

IC 25-1-6-6 Executive director; representatives; staff placement 

Sec. 6. (a) The executive director shall designate certain employees of 

the licensing agency to represent the executive director of the licensing 

agency at board meetings, proceedings, or any other activities of a 

board. 

(b) The executive director shall assign staff to individual boards and 

shall work with the boards to ensure efficient utilization and placement of 

staff. 


SEC.7. 



IC 25-1-6-8 Department of state revenue; access to names of 

licensees and applicants; persons on tax warrant list 

Sec. 8. (a) The bureau and the boards may allow the department of 

state revenue access to the name of each person who: 

(1) is licensed under this chapter or IC 25-1-5; or 

(2) has applied for a license under this chapter or IC 25-1-5. 

(b) If the department of state revenue notifies the licensing agency that 

a person is on the most recent tax warrant list, the licensing agency may 

not issue or renew the person's license until: 

(1) the person provides to the licensing agency a statement from 

the department of revenue that the person's delinquent tax liability 

has been satisfied; or 

(2) the licensing agency receives a notice from the commissioner of 

the department of state revenue under IC 6-8.1-8-2(k). 

As added by P.L.26-1985, SEC.20. Amended by P.L.332-1989(ss), 

SEC.46; P.L. 2-2005, SEC. 63; P.L. 206-2005, SEC. 10. 



IC 25-1-6-10 Provision of social security numbers; access to 

numbers 

Sec. 10. (a) An individual who applies for a license issued by a board 

under this chapter or who holds a license issued by a board under this 

chapter shall provide the individual's Social Security number to the 

licensing agency.

(b) The licensing agency and the boards shall collect and release the 

applicant's or licensee's Social Security number as otherwise provided in 

state or federal law. 

(c) Notwithstanding IC 4-1-10-3, the licensing agency and the boards 

may allow access to the Social Security number of each person who is 

licensed under this chapter or has applied for a license under this chapter 

to: 

(1) a testing service that provides the examination for licensure to 

the licensing agency or the boards; or 

(2) an individual state regulatory board or an organization composed 

of state regulatory boards for the applicant's or licensee's profession 

for the purpose of coordinating licensure and disciplinary activities 

among the individual states. 



Chapter 7. Investigation and Prosecution of Complaints Concerning 

Regulated Occupations 


Sec. 1. As used in this chapter: 

"Board" means the appropriate agency listed in the definition of 

regulated occupation in this section. 

"Director" refers to the director of the division of consumer 

protection. 

"Division" refers to the division of consumer protection, office of 

the attorney general. 

"Licensee" means a person who is: 

(1) licensed, certified, or registered by a board listed in this 

section; and 

(2) the subject of a complaint filed with the division. 

"Person" means an individual, a partnership, a limited liability 

company, or a corporation. 

"Regulated occupation" means an occupation in which a 

person is licensed, certified, or registered by one (1) of the 

following: 



25-4-1-2). 








(10) State board of registration for professional engineers (IC 25- 

31-1-3). 

(11) Indiana state board of health facility administrators (IC 25-19- 

1). 







(18) Board of environmental health specialists (IC 25-32-1). 



2). 


(22) Indiana board of veterinary medical examiners (IC 25-38.1). 

40 

(23) Department of natural resources for purposes of licensing 

water well drillers under IC 25-39-3. 



30-1-5.2). 


(27) Social worker, marriage and family therapist, and mental 

health counselor board (IC 25-23.6). 


34.1-8). 

(29) State board of registration for land surveyors (IC 25-21.5-2- 

1). 





(34) Indiana physical therapy committee (IC 25-27). 



(37) State department of health, for out-of-state mobile health care 

facilities. 

(38) State board of massage therapy (IC 25-21.8-2-1) 

(39) Any other occupational or professional agency created after 

June 30, 1981. 



1985, SEC.29; P.L.149-1987, SEC.21; P.L.257-1987, SEC.15; P.L.242- 

1989, SEC.6; P.L.234-1989, SEC.3; P.L.238-1989, SEC.6; P.L.1-1990, 









P.L.134, SEC.16. 

IC 25-1-7-2 Duties of attorney general 

Sec. 2. The office of the attorney general, under the conditions 

specified in this chapter, may receive, investigate, and prosecute 

complaints concerning regulated occupations. 


IC 25-1-7-3 Investigation of complaints 

Sec. 3. The division is responsible for the investigation of complaints 

concerning licensees. 


IC 25-1-7-4 Complaints; requisites; standing 

Sec. 4. All complaints must be written and signed by the complainant 

and initially filed with the director. Except for employees of the attorney 

general's office acting in their official capacity, a complaint may be filed 

by any person, including members of any of the boards listed in section 1 

of this chapter. 


IC 25-1-7-5 Duties and powers of director 

Sec. 5. (a) Subsection (b)(1) does not apply to: 

(1) a complaint filed by: 

(A) a member of any of the boards listed in section 1 of this 

chapter; or 

(B) the Indiana professional licensing agency; or 

(2) a complaint filed under IC 25-1-5-4.

(b) The director has the following duties and powers: 

(1) The director shall make an initial determination as to the merit of 

each complaint. A copy of a complaint having merit shall be 

submitted to the board having jurisdiction over the licensee's 

regulated occupation that board thereby acquiring jurisdiction over 

the matter except as otherwise provided in this chapter. 

(2) The director shall through any reasonable means notify the 

licensee of the nature and ramifications of the complaint and of the 

duty of the board to attempt to resolve the complaint through 

negotiation. 

(3) The director shall report any pertinent information regarding the 

status of the complaint to the complainant. 

(4) The director may investigate any written complaint against a 

licensee. The investigation shall be limited to those areas in which 

there appears to be a violation of statutes governing the regulated 

occupation. 

(5) The director has the power to subpoena witnesses and to send 

for and compel the production of books, records, papers, and 

documents for the furtherance of any investigation under this 

chapter. The circuit or superior court located in the county where the 

subpoena is to be issued shall enforce any such subpoena by the 

director. 


SEC.2; P.L.14-2000, SEC.55; P.L. 206-2005, SEC. 11. 

IC 25-1-7-6 Statement of settlement; period of time to resolve 

Sec. 6. (a) This section does not apply to: 

(1) a complaint filed by: 

(A) a member of any of the boards listed in section 1 of this 

chapter; or 

(B) the Indiana professional licensing agency; or 

(2) a complaint filed under IC 25-1-5-4. 

(b) If, at any time before the director files the director’s 

recommendations with the attorney general, the board files with the 

director a statement signed by the licensee and the complainant that the 

complaint has been resolved, the director shall not take further action. 

For a period of thirty (30) days after the director has notified the board 

and the licensee that a complaint has been filed, the division shall not 

conduct any investigation or take any action whatsoever, unless 

requested by the board. If, during the thirty (30) days, the board requests 

an extension of the thirty (30) day time period, the director shall grant it 

for a period not exceeding an additional twenty (20) days. If at any time 

during the thirty (30) day period or an extension thereof, the board 

notifies the director of its intention not to proceed further to resolve the 

complaint, the division may proceed immediately under this chapter. For 

every purpose of this section, a board may designate a board member or 

staff member to act on behalf of or in the name of the board. 


SEC.3; P.L. 206-2005, SEC. 12. 

IC 25-1-7-7 Disciplinary sanctions; report to attorney general; 

prosecution; hearing officer 

Sec. 7. (a) If there has been no statement of settlement filed by the 

board under section 6 of this chapter, and if, after conducting an 

investigation, the director believes that the licensee should be subjected 

to disciplinary sanctions by the board of his regulated occupation, then 

he shall so report to the attorney general. Upon receiving the director's 

report, the attorney general may prosecute the matter, on behalf of the 

state of Indiana, before the board. The board may designate any person 

as a hearing officer to hear the matter. 

(b) Notwithstanding subsection (a) of this section, if the board by 

majority vote so requests, the attorney general shall prosecute the matter 

before the board, on behalf of the state of Indiana. 


41 

IC 25-1-7-8 Witnesses 

Sec. 8. At the hearing, the board or hearing officer may call witnesses 

in addition to those presented by the state or the licensee. 


IC 25-1-7-9 Disqualification of board member 

Sec. 9. A board member is disqualified from any consideration of the 

case if the board member filed the complaint or participated in 

negotiations regarding the complaint. The board member is not 

disqualified from the board's final determination solely because the board 

member was the hearing officer or determined the complaint and the 

information pertaining to the complaint was current significant 

investigative information (as defined by IC 25-23.2-1-5 (Repealed)). 


SEC.1; P.L.1-2007, SEC.166. 

IC 25-1-7-10 Confidentiality of complaints and information 

Sec. 10. (a) All complaints and information pertaining to the complaints 

shall be held in strict confidence until the attorney general files notice 

with the board of the attorney general's intent to prosecute the licensee. 

(b) A person in the employ of the office of attorney general or any of 

the boards, or any person not a party to the complaint, may not disclose 

or further a disclosure of information concerning the complaint unless the 

disclosure is required: 

(1) under law; or 

(2) for the advancement of an investigation. 


SEC.2; P.L.1-2007, SEC.167. 

IC 25-1-7-11 Administrative orders and procedures 

Sec. 11. Nothing in this chapter limits the rights of the licensee or the 

state under IC 4-21.5. 


SEC.110. 

IC 25-1-7-12 Reimbursement of attorney general 

Sec. 12. (a) If: 

(1) a fund is created by statute for the payment of an unpaid 

judgment against a licensee; and 

(2) the office of the attorney general is required by statute to provide 

services to the boards that administer the funds described in 

subdivision (1); 

the office of the attorney general is entitled to reimbursement for the 

costs incurred in providing the services described in subdivision (2). 

(b) If: 

(1) more than one (1) fund is established by statute for the 

payment of an unpaid judgment against a licensee; and 

(2) the office of the attorney general is entitled to reimbursement 

under subsection (a); 

the funds for reimbursement shall be taken in equal amounts from each 

of the funds described in subdivision (1). 


IC 25-1-7-13 Reports; contents 

Sec. 13. The office of the attorney general shall submit to each board, 

at the request of the board, a report that includes the following 

information concerning that regulated occupation: 

(1) The number of complaints filed. 

(2) The number of cases currently under investigation. 

(3) The number of cases closed. 

(4) The number of cases resolved. 

(5) The age of the complaints. 



Chapter 8. Occupational and Professional Licensure, Registration, 

and Certification Fees 

IC 25-1-8-1 "Board" defined 

Sec. 1. As used in this chapter, "board" means any of the following: 



(IC 25-4-1-2). 







(9) State board of funeral and cemetery service (IC 25-15). 


1-3). 



(13) Mining board (IC 22-10-1.5-2). 








2). 

(21) Indiana real estate commission (IC 25-34.1-2-1). 

(22) Indiana board of veterinary medical examiners (IC 25-38.1-2-1). 

(23) Department of insurance (IC 27-1). 

(24) State police department (IC 10-11-2-4), for purposes of 

certifying polygraph examiners under IC 25-30-2. 

(25) Department of natural resources for purposes of licensing water 

well drillers under IC 25-39-3. 


30-1-5.2). 

(27) Occupational therapy committee (IC 25-23.5-2-1). 


counselor board (IC 25-23.6-2-1). 


34.1-8). 










(39) Any other occupational or professional agency created after 

June 30, 1981. 








42 




P.L.200-2007, SEC.6; P.L.3-2008, SEC.179. 

IC 25-1-8-1.1 Repealed 


IC 25-1-8-2 Fees; establishment and collection 

Sec. 2. (a) Notwithstanding any other provision regarding the fees to 

be assessed by a board, a board shall establish by rule and cause to be 

collected fees for the following: 

(1) Examination of applicants for licensure, registration, or 

certification. 

(2) Issuance, renewal, or transfer of a license, registration, or 

certificate. 

(3) Restoration of an expired license, registration, or certificate 

when such action is authorized by law. 

(4) Issuance of licenses by reciprocity or endorsement for out-ofstate 

applicants. 

(5) Issuance of board or committee reciprocity or endorsements for 

practitioners licensed, certified, or registered in Indiana who apply to 

another state for a license. 

No fee shall be less than twenty-five dollars ($25) unless the fee is 

collected under a rule adopted by the board which sets a fee f or 

miscellaneous expenses incurred by the board on behalf of the 

practitioners the board regulates. 

(b) Fees established by statute shall remain in effect until replaced by a 

new fee adopted by rule under this section. 

(c) In no case shall the fees be less than are required to pay all of the 

costs, both direct and indirect, of the operation of the board. 

(d) For the payment of fees, a board shall accept cash, a draft, a 

money order, a cashier's check, and a certified or other personal check. If 

a board receives an uncertified personal check for the payment of a fee 

and if the check does not clear the bank, the board may void the license, 

registration, or certificate for which the check was received. 

(e) Unless designated by rule, a fee is not refundable. 

(f) A board shall charge a fee of not more than ten dollars ($10) for the 

issuance of a duplicate license, registration, or certificate. 



1993, SEC.13; P.L.235-1995, SEC.1; P.L.197-2007, SEC.19. 

IC 25-1-8-3 Quadrennial license or registration cycle; refunds 

Sec. 3. (a) A board, operating on a quadrennial license, registration, or 

certificate renewal cycle, shall refund one-half (1/2) of the amount of the 

license, registration, or certificate fee if the holder of the license, 

registration, or certificate surrenders it at least two (2) years before it 

expires. 

(b) This section does not apply to the holder of a license, registration, 

or certificate revoked or suspended by the board. 


IC 25-1-8-4 Quadrennial license renewal system 

Sec. 4. (a) Notwithstanding any law establishing a biennial license 

renewal system, a board operating on such a system may by rule 

establish a quadrennial license renewal system. 

(b) If a board establishes a quadrennial license renewal system, it may 

provide for a reduction in the fees for the four (4) year license. 


IC 25-1-8-5 Employment of professionals for testing; examination on 

statutes, rules, and regulations; standards of review 

Sec. 5. (a) Notwithstanding any statutory provisions regarding the 

administration of examinations, a board or committee may employ 

organizations or additional professionals to assist in the preparation, 

administration, and scoring of licensing examinations. 

(b) A board or committee may require applicants for licensure, 

certification, or registration by examination, endorsement, or reciprocity to 

pass a test on the state or federal statutes, state rules, and federal 

regulations that the board or committee determines by rule to be relevant 

to the practice of a regulated profession. 

(c) A board or committee may enter into a contract with a testing 

company or national association to set the standards of review for an 

examination by an applicant for licensure, certification, or registration. 

The standards of review may include: 

(1) setting fees for review; 

(2) requiring that an examination remain confidential; and 

(3) prohibiting the release of the examination or copies of the 

examination. 


P.L.48-1991, SEC.19. 

IC 25-1-8-6 Reinstatement of delinquent or lapsed licenses 

Sec. 6. (a) As used in this section, "board" means any of the following: 



(IC 25-4-1-2). 










1-3). 




(15) Committee of hearing aid dealer examiners (IC 25-20-1-1.5). 















30-1-5.2). 




34.1-8). 



counselor board (IC 25-23.6). 


2). 

(36) Indiana board of veterinary medical examiners (IC 25-38.1). 

(37) State board of massage therapy (IC 25-21.8-2-1). 

(b) This section does not apply to a license, certificate, or registration 

that has been revoked or suspended. 

(c) Notwithstanding any other law regarding the reinstatement of a 

delinquent or lapsed license, certificate, or registration and except as 

provided in section 8 of this chapter, the holder of a license, certificate, or 

registration that was issued by the board that is three (3) years or less 

delinquent must be reinstated upon meeting the following requirements: 

(1) Submission of the holder's completed renewal application. 

(2) Payment of the current renewal fee established by the board 

under section 2 of this chapter. 

(3) Payment of a reinstatement fee established by the Indiana 

professional licensing agency 

(4) If a law requires the holder to complete continuing education as a 

condition of renewal, the holder: 

(A) shall provide the board with a sworn statement, signed by the 

holder, that the holder has fulfilled the continuing education 

requirements required by the board; or 

(B) shall, if the holder has not complied with the continuing 

education requirements, meet any requirements imposed under IC 

25-1-4-5 and IC 25-1-4-6 

(d) Notwithstanding any other law regarding the reinstatement of a 

delinquent or lapsed license, certificate, or registration and except as 

provided in section 8 of this chapter, unless a statute specifically does 

not allow a license, certificate, or registration to be reinstated if it has 

lapsed for more than three (3) years, the holder of a license, certificate, 

or registration that was issued by the board that is more than three (3) 

years delinquent must be reinstated upon meeting the following 

requirements: 

(1) Submission of the holder's completed renewal application. 

(2) Payment of the current renewal fee established by the board 


(3) Payment of a reinstatement fee equal to the current initial 

application fee. 

(4) If a law requires the holder to complete continuing education as a 

condition of renewal, the holder: 

(A) shall provide the board with a sworn statement, signed by the 

holder, that the holder has fulfilled the continuing education 

requirements required by the board; or 

(B) shall, if the holder has not complied with the continuing 

education requirements, meet any requirements imposed under IC 

25-1-4-5 and IC 25-1-4-6 

(5) Complete such remediation and additional training as deemed 

appropriate by the board given the lapse of time involved. 

(6) Any other requirement that is provided for in statute or rule that is 

not related to fees. 

As added by P.L.269-2001, SEC.5. Amended by P.L. 206-2005, SEC. 

13; P.L.157-2006, SEC.20; P.L.185-2007, SEC.6; P.L.197-2007, 

SEC.20; P.L.3-2008, SEC.180; P.L.105-2008, SEC.2. 



IC 25-1-8-8 License reinstatement; grounds for denial 

Sec. 8. (a) As used in this section, "board" has the meaning set forth in 

section 6(a) of this chapter. 

(b) The licensing agency may delay reinstating a license, certificate, or 

registration for not more than ninety (90) days after the date the applicant 

applies for reinstatement of a license, certificate, or registration to permit 

the board to investigate information received by the licensing agency that 

43

the applicant for reinstatement may have committed an act for which the 

applicant may be disciplined. If the licensing agency delays reinstating a 

license, certificate, or registration, the licensing agency shall notify the 

applicant that the applicant is being investigated. Except as provided in 

subsection (c), the board shall do one (1) of the following before the 

expiration of the ninety (90) day period: 

(1) Deny reinstatement of the license, certificate, or registration 

following a personal appearance by the applicant before the board. 

(2) Reinstate the license, certificate, or registration upon satisfaction 

of all other requirements for reinstatement. 

(3) Reinstate the license and file a complaint under IC 25-1-7. 

(4) Request the office of the attorney general to conduct an 

investigation under subsection (d) if, following a personal 

appearance by the applicant before the board, the board has good 

cause to believe that the applicant engaged in activity described in 

IC 25-1-9-4 or IC 25-1-11-5. 

(5) Upon agreement of the applicant and the board and following a 

personal appearance by the applicant before the board, reinstate the 

license, certificate, or registration and place the applicant on 

probation status under IC 25-1-9-9 or IC 25-1-11-12. 

(c) If an applicant fails to appear before the board under subsection (b), 

the board may take action as provided in subsection (b)(1), (b)(2), or 

(b)(3). 

(d) If the board makes a request under subsection (b)(4), the office of 

the attorney general shall conduct an investigation. Upon completion of 

the investigation, the office of the attorney general may file a petition 

alleging that the applicant has engaged in activity described in IC 25-1-9- 

4 or IC 25-1-11-5. If the office of the attorney general files a petition, the 

board shall set the matter for a public hearing. If, after a public hearing, 

the board finds that the applicant violated IC 25-1-9-4 or IC 25-1-11-5, 

the board may impose sanctions under IC 25-1-9-9 or IC 25-1-11-12. The 

board may delay reinstating a license, certificate, or registration beyond 

ninety (90) days after the date the applicant files an application for 

reinstatement of a license, certificate, or registration until a final 

determination is made by the board. 

(e) The license, certificate, or registration of the applicant for license 

reinstatement remains invalid during the ninety (90) day period unless: 

(1) the license, certificate, or registration is reinstated following a 

personal appearance by the applicant before the board before the 

end of the ninety (90) day period; 

(2) the board issues a conditional license to the practitioner that is 

effective until the reinstatement is denied or the license is reinstated; 

or 

(3) the reinstatement is denied. 

If the ninety (90) day period expires without action by the board, the 

license, certificate, or registration shall be automatically reinstated at the 

end of the ninety (90) day period. 



Chapter 10. Reserved 


Chapter 11. Professional Licensing Standards of Practice 

IC 25-1-11-1 “Board” defined 

Sec. 1. As used in this chapter, "board" means any of the following: 



25-4-1-2). 

44 

(3) Indiana auctioneer commission (IC 25-6.1-2). 




(7) State board of registration of land surveyors (IC 25-21.5-2-1). 


(9) State board of registration for professional engineers (IC 25-31-1- 

3). 


(11) Indiana real estate commission (IC 25-34.1-2-1). 


34.1-8). 


30-1-5.2). 


(15) Home inspectors licensing board (IC 25-20.2-3-1) 





P.L.3-2008, SEC.181. 

IC 25-1-11-2 “Practitioner” defined 

Sec. 2. As used in this chapter, "practitioner" means a person that 

holds: 



permit; 



(5) an inactive license; 

issued by the board regulating a profession. 


IC 25-1-11-3 “License” defined 

Sec. 3. As used in this chapter, "license" includes a license, certificate, 

registration, or permit. 


IC 25-1-11-4 “Person” defined 

Sec. 4. As used in this chapter, "person" means an individual, a 

partnership, a corporation, or a limited liability company. 


IC 25-1-11-5 Practitioner compliance with professional standards; 

findings; meriting disciplinary sanctions 

Sec. 5. (a) A practitioner shall comply with the standards established 

by the board regulating a profession. A practitioner is subject to the 

exercise of the disciplinary sanctions under section 12 of this chapter if, 

after a hearing, the board finds that: 

(1) a practitioner has: 

(A) engaged in or knowingly cooperated in fraud or material 

deception in order to obtain a license to practice, including 

cheating on a licensing examination; 

(B) engaged in fraud or material deception in the course of 

professional services or activities; 

(C) advertised services or goods in a false or misleading manner; 

or 

(D) been convicted of a crime or assessed a civil penalty involving 

fraudulent billing practices. 

(2) a practitioner has been convicted of a crime that: 

(A) has a direct bearing on the practitioner's ability to continue to 


(B) is harmful t o the public.

(3) a practitioner has knowingly violated a state statute or rule or 

federal statute or regulation regulating the profession for which the 

practitioner is licensed; 

(4) a practitioner has continued to practice although the practitioner 

has become unfit to practice due to: 

(A) professional incompetence, including undertaking professional 

activities that the practitioner is not qualified by training or 

experience to undertake; 

(B) failure to keep abreast of current professional theory or 

practice; 

(C) physical or mental disability; or 

(D) addiction to, abuse of, or severe dependency on alcohol or 

other drugs that endanger the public by impairing a practitioner's 

ability to practice safely; 

(5) a practitioner has engaged in a course of lewd or immoral 

conduct in connection with the delivery of services to the public; 

(6) a practitioner has allowed the practitioner's name or a license 

issued under this chapter to be used in connection with an individual 

or business who renders services beyond the scope of that 

individual's or business's training, experience, or competence; 

(7) a practitioner has had disciplinary action taken against the 

practitioner or the practitioner's license to practice in any state or 

jurisdiction on grounds similar to those under this chapter; 

(8) a practitioner has assisted another person in committing an 

act that would constitute a ground for disciplinary sanction under this 

chapter; 

(9) a practitioner has allowed a license issued by a board to be: 

(A) used by another person; or 

(B) displayed to the public when the license has expired, is 

inactive, or has been revoked or suspended; or 

(10) a practitioner has failed to comply with an order imposing a 

sanction under section 12 of this chapter. 

(b) If an applicant or a practitioner has engaged in or knowingly 

cooperated in fraud or material deception to obtain a license to practice, 

including cheating on the licensing examination, the board may rescind 

the license if it has been granted, void the examination or other 

fraudulent or deceptive material, and prohibit the applicant from 

reapplying for the license for a length of time established by the board. 

An applicant who is aggrieved by a decision of the board under this 

section is entitled to hearing and appeal rights under the Indiana 

administrative rules and procedures act (IC 4-21.5). 

(c) A certified copy of the record of disciplinary action is conclusive 

evidence of the other jurisdiction's disciplinary action under subsection 

(a)(7). 


P.L.113-1999, SEC.1; P.L.197-2007, SEC.24. 

IC 25-1-11-6 Architect or landscape architect; grounds for 

disciplinary sanctions 

Sec. 6. A practitioner registered as an architect or a landscape 

architect is subject to the disciplinary sanctions under section 12 of this 

chapter if, after a hearing, the board finds that the practitioner has: 

(1) permitted the practitioner's seal to be affixed to plans, 

specifications, or drawings that were not prepared by the practitioner 

or under the practitioner's personal supervision by the practitioner's 

regularly employed subordinates; or 

(2) used the title "engineer" or advertised to practice engineering and 

is not registered under IC 25-31-1. 


IC 25-1-11-7 Auctioneers; grounds for disciplinary sanctions 

Sec. 7. A practitioner licensed to practice auctioneering is subject to 

the disciplinary sanctions under section 12 of this chapter if, after a 

hearing, the board finds that the practitioner has failed to: 

45 

(1) account and to make payment under IC 25-6.1-6-2; or 

(2) keep the funds of others separate from the practitioner's own 

private accounts. 


IC 25-1-11-8 Barbers; grounds for disciplinary sanctions 

Sec. 8. A practitioner registered as a barber is subject to the 

disciplinary sanctions under section 12 of this chapter if, after a hearing, 

the board finds that the practitioner has continued to practice barbering 

while the practitioner has an infectious, a contagious, or a communicable 

disease that has been epidemiologically demonstrated to be transmitted 

through casual contact during the scope of practice of barbering. 


IC 25-1-11-9 Engineers or land surveyors; grounds for disciplinary 

sanctions 

Sec. 9. A practitioner registered as an engineer or a land surveyor is 

subject to the disciplinary sanctions under section 12 of this chapter if, 

after a hearing, the board finds that the practitioner: 

(1) has permitted the practitioner's seal to be affixed to plans, 

specifications, or drawings not prepared by the practitioner or under 

the practitioner's personal supervision by the practitioner's regularly 

employed subordinates; 

(2) has used the title "architect" or advertised to practice architecture 

and is not registered under IC 25-4-1. 


IC 25-1-11-9.5 Repealed 

(Repealed by P.L. 194-2005, SEC. 87.) 

IC 25-1-11-10 Physical and mental examination of practitioner 

Sec. 10. The board may order a practitioner to submit to a reasonable 

physical or mental examination, at the practitioner’s expense, if the 

practitioner's physical or mental capacity to practice safely and 

competently is at issue in a disciplinary proceeding. 


Amended by P.L. 194-2005, SEC. 7. 

IC 25-1-11-11 Refusal of physical or mental examination; summary 

suspension 

Sec. 11. Failure to comply with a board order to submit to a physical or 

mental examination makes a practitioner liable to summary suspension 



IC 25-1-11-12 Sanctions for violations 

Sec. 12. (a) The board may impose any of the following sanctions, 

singly or in combination, if the board finds that a practitioner is subject to 

disciplinary sanctions under sections 5 through 9 of this chapter: 

(1) Permanently revoke a practitioner's license. 

(2) Suspend a practitioner's license. 

(3) Censure a practitioner. 

(4) Issue a letter of reprimand. 

(5) Place a practitioner on probation status and require the 

practitioner to: 

(A) report regularly to the board upon the matters that are the 

basis of probation; 

(B) limit practice to those areas prescribed by the board; 

(C) continue or renew professional education approved by the 

board until a satisfactory degree of skill has been attained in those 

areas that are the basis of the probation; or 

(D) perform or refrain from performing any acts, including 

community restitution or service without compensation, that the

oard considers appropriate to the public interest or to the 

rehabilitation or treatment of the practitioner. 

(6) Assess a civil penalty against the practitioner for not more than 

one thousand dollars ($1,000) for each violation listed in sections 5 

through 9 of this chapter except for a finding of 

incompetency due to a physical or mental disability. 

(b) When imposing a civil penalty under subsection (a)(6), the board 

shall consider a practitioner's ability to pay the amount assessed. If the 

practitioner fails to pay the civil penalty within the time specified by the 

board, the board may suspend the practitioner's license without 

additional proceedings. However, a suspension may not be imposed if 

the sole basis for the suspension is the practitioner's inability to pay a 

civil penalty. 

(c) The board may withdraw or modify the probation under subsection 

(a)(5) if the board finds after a hearing that the deficiency that required 

disciplinary action has been remedied or that changed circumstances 

warrant a modification of the order. 


IC 25-1-11-13 Summary suspension of practitioners; real estate 

appraisers; notification by consumer protection division 

Sec. 13. (a) The board may summarily suspend a practitioner's license 

for ninety (90) days before a final adjudication or during the appeals 

process if the board finds that a practitioner represents a clear and 

immediate danger to the public's health, safety, or property if the 

practitioner is allowed to continue to practice. The summary suspension 

may be renewed upon a hearing before the board, and each renewal 

may be for not more than ninety (90) days. 

(b) The board may summarily suspend the license of a real estate 

appraiser for ninety (90) days before a final adjudication or during the 

appeals process if the board finds that the licensed real estate appraiser 

has engaged in material and intentional misrepresentations or omissions 

in the preparation of at least three (3) written appraisal reports that were 

submitted by a person to obtain a loan. The summary suspension may 

be renewed after a hearing before the board. Each renewal of a 

summary suspension may be for not more than ninety (90) days. 

(c) Before the board may summarily suspend a license under this 

section, the consumer protection division of the office of the attorney 

general office shall make a reasonable attempt to notify a practitioner of: 

(1) a hearing by the board to suspend the practitioner's license: and 

(2) information regarding the allegation against the practitioner. 

The consumer protection division of the office of the attorney general 

shall also notify the practitioner that the practitioner may provide a written 

or an oral statement to the board on the practitioner's behalf before the 

board issues an order for summary suspension. A reasonable attempt to 

notify the practitioner is made if the consumer protection division of the 

office of the attorney general attempts to notify the practitioner by 

telephone or facsimile at the last telephone number or facsimile number 

of the practitioner on file with the board. 



IC 25-1-11-14 Reinstatement of suspended license 

Sec. 14. The board may reinstate a license that has been suspended 

under this chapter if, after a hearing, the board is satisfied that the 

applicant is able to practice with reasonable skill, safety, and competency 

to the public. As a condition of reinstatement, the board may impose 

disciplinary or corrective measures authorized under this chapter. 


IC 25-1-11-15 Reinstatement of revoked license 

Sec. 15. The board may not reinstate a license that has been revoked 

under this chapter. An individual whose license has been revoked under 

46 

this chapter may not apply for a new license until seven (7) years after 

the date of revocation. 


IC 25-1-11-16 Consistency of sanctions 

Sec. 16. The board shall seek to achieve consistency in the application 

of sanctions authorized in this chapter. Significant departures from prior 

decisions involving similar conduct must be explained in the board's 

findings or orders. 


IC 25-1-11-17 Surrender of practitioner license 

Sec. 17. A practitioner may petition the board to accept the surrender 

of the practitioner's license instead of having a hearing before the board. 

The practitioner may not surrender the practitioner's license without the 

written approval of the board, and the board may impose any conditions 

appropriate to the surrender or reinstatement of a surrendered license. 


IC 25-1-11-18 Costs; practitioners subjected to sanctions 

Sec. 18. A practitioner who has been subjected to disciplinary 

sanctions may be required by a board to pay the costs of the proceeding. 

The practitioner's ability to pay shall be considered when costs are 

assessed. If the practitioner fails to pay the costs, a suspension may not 

be imposed solely upon the practitioner's inability to pay the amount 

assessed. These costs are limited to costs for the following: 

(1) Court reporters. 

(2) Transcripts. 

(3) Certification of documents. 

(4) Photo duplication. 

(5) Witness attendance and mileage fees. 

(6) Postage. 

(7) Expert witnesses. 

(8) Depositions. 

(9) Notarizations. 

(10) Administrative law judges 

As added by P.L.214-1993, SEC.1. Amended by P.L. 194-2005, SEC. 8. 

IC 25-1-11-19 Refusal of licensure or granting of probationary 

license 

Sec. 19. (a) The board may refuse to issue a license or may issue a 

probationary license to an applicant for licensure if: 

(1) the applicant has: 

(A) been disciplined by a licensing entity of another state or 

jurisdiction; or 

(B) committed an act that would have subjected the applicant to 

the disciplinary process if the applicant had been licensed in 

Indiana when the act occurred; and 

(2) the violation for which the applicant was or could have been 

disciplined has a bearing on the applicant's ability to competently 

perform or practice the profession in Indiana. 

(b) The board may: 

(1) refuse to issue a license; or 

(2) issue a probationary license; 

to an applicant for licensure if the applicant practiced without a license in 

violation of the law. 

(c) Whenever the board issues a probationary license, the board may 

require a licensee to do any of the following: 

(1) Report regularly to the board upon the matters that are the 

basis of the discipline of the other state or jurisdiction. 

(2) Limit practice to the areas prescribed by the board. 

(3) Continue or renew professional education requirements. 

(4) Engage in community restitution or service without 

compensation for the number of hours specified by the board.

(5) Perform or refrain from performing an act that the board 

considers appropriate to the public interest or to the rehabilitation or 

treatment of the applicant. 

(d) The board shall remove any limitations placed on a probationary 

license under this section if the board finds after a public hearing that the 

deficiency that required disciplinary action has been remedied. 


IC 25-1-11-20 Applicant appearance before board 

Sec. 20. The board may require an applicant for licensure to appear 

before the board before issuing a license. 

As added by P.L. 194-2005, SEC. 10. 

IC 25-1-11-21 Adoption of rules; spouses of active duty military 

personnel 

Sec. 21. The board may adopt rules under IC 4-22-2, including 

emergency rules under IC 4-22-2-37.1, to establish procedures to 

expedite the issuance or renewal of a: 

(1) license; 

(2) certificate; 

(3) registration; or 

(4) permit; 

of a person whose spouse serves on active duty (as defined in IC 25-1- 

12-2) and is assigned to a duty station in Indiana. 


INIDIANA CODE § 25-1-12 

Chapter 12. Renewal of Licenses Held by Individuals 

in Military Service 

IC 25-1-12-1 Applicability of chapter 

Sec. 1. This chapter applies to an individual who: 

(1) holds a license, certificate, registration, or permit under this 

title, IC 16, or IC 22; and 

(2) is called to active duty. 


IC 25-1-12-2 "Active duty" defined 

Sec. 2. As used in this chapter, "active duty" means full-time service in 

the: 

(1) armed forces of the United States; or 

(2) national guard; 

for a period that exceeds thirty (30) consecutive days in a calendar year. 


IC 25-1-12-3 "Armed forces of the United States" defined 

Sec. 3. As used in this chapter, "armed forces of the United States" 

means the active or reserve components of: 

(1) the army; 

(2) the navy; 

(3) the air force; 

(4) the coast guard; 

(5) the marine corps; or 

(6) the merchant marine. 


IC 25-1-12-4 "National guard" defined 

Sec. 4. As used in this chapter, "national guard" means: 

(1) the Indiana army national guard; or 

(2) the Indiana air national guard. 


IC 25-1-12-5 "Practitioner" defined 

Sec. 5. As used in this chapter, "practitioner" means an individual who 

holds: 

(1) an unlimited license, certificate, or registration; 

(2) a limited or probationary license, certificate, or registration; 



(5) a provisional license; 

issued under this title, IC 16, or IC 22. 


IC 25-1-12-6 Extension to renew license or complete continuing 

education; requirements for extension; additional extensions 

Sec. 6. (a) Notwithstanding any other law, a practitioner who is called 

to active duty out-of-state and meets the requirements of subsection (b) 

is entitled to an extension of time described in subsection (c) to: 

(1) renew; and 

(2) complete the continuing education required by; 

the practitioner's license, certificate, registration, or permit. 

(b) The practitioner must meet the following requirements to receive 

the extension of time provided under subsection (a): 

(1) On the date the practitioner enters active duty, the practitioner's 

license, certificate, registration, or permit may not be revoked, 

suspended, lapsed, or be the subject of a complaint under IC 25-1-7. 

(2) The practitioner's license, certificate, registration, or permit must 

expire while the practitioner is out-of-state on active duty and the 

practitioner must not have received the notice of expiration before 

the date the practitioner entered active duty. 

(3) The practitioner shall provide proof of out-of-state active duty by 

providing a copy of the practitioner's: 

(A) discharge; or 

(B) government movement orders; 

to the agency, board, commission, or committee issuing the 

practitioner's license, certificate, registration, or permit at the time the 

practitioner renews the practitioner's license, certificate, registration, 

or permit under this chapter. 

(c) The extension of time provided under subsection (a) is equal to one 

hundred eighty (180) days after the date of the practitioner's discharge or 

release from active duty. 

(d) The agency, board, commission, or committee that issued the 

practitioner's license, certificate, registration, or permit may extend the 

period provided in subsection (c) if the agency or board determines that 

an illness, an injury, or a disability related to the practitioner's active duty 

prevents the practitioner from renewing or completing the continuing 

education required for the practitioner's license, certificate, registration, or 

permit. However, the agency, board, commission, or committee may not 

extend the period for longer than three hundred sixty-five (365) days after 

the date of the practitioner's discharge or release from active duty. 


IC 25-1-12-7 Waiver of late fees 

Sec. 7. Any late fees that may be assessed against a practitioner 

in connection with a renewal under this chapter are waived. 


IC 25-1-12-8 Construction with federal law 

Sec. 8. This chapter may not be construed as a restriction or limitation 

on any of the rights, benefits, and protections granted to a member of: 

(1) the armed forces of the United States; or 

(2) the national guard; 

under federal law. 


47


Chapter 14. Meetings 

IC 25-1-14-1 Applicability 

Sec. 1. This section applies to a meeting of a board, committee, or 

commission listed in IC 25-1-5-3 or IC 25-1-6-3. 


IC 25-1-14-2 Participation by member not physically present at 

meeting 

Sec. 2. (a) A member of a board, committee, or commission may 

participate in a meeting of the board, committee, or commission: 

(1) except as provided in subsections (b) and (c), at which at least a 

quorum is physically present at the place where the meeting is 

conducted; and 

(2) by using a means of communication that permits: 

(A) all other members participating in the meeting; and 

(B) all members of the public physically present at the place where 

the meeting is conducted; 

to simultaneously communicate with each other during the meeting. 

(b) A member of a board, committee, or commission may participate in 

an emergency meeting of the board, committee, or commission to 

consider disciplinary sanctions under IC 25-1-9-10 or IC 25-1-11-13 by 

using a means of communication that permits: 

(1) all other members participating in the meeting; and 

(2) all members of the public physically present at the place where 



(c) A member of the state boxing commission may participate in 

meetings of the commission to consider the final approval of a permit for 

a particular boxing or sparring match or exhibition under IC 25-9-1-6(b) 

by using a means of communication that permits: 

(1) all other members participating in the meeting; and 

(2) all members of the public physically present at the place where 



(d) A member who participates in a meeting under subsection (b) or 

(c): 

(1) is considered to be present at the meeting; 

(2) shall be counted for purposes of establishing a quorum; and 

(3) may vote at the meeting. 


Non-Code Provision under Public Law 206-2005 

P.L. 206-2005, SECTION 16 

(a) The rules adopted by the health professions bureau before July 1, 

2005, and in effect on June 30, 2005, shall be treated after June 30, 

2005, as the rules of the Indiana professional licensing agency. 

(b) On July 1, 2005, the Indiana professional licensing agency 

becomes the owner of all of the property of the health professions 

bureau. An appropriation made to the health professions bureau shall be 

treated after June 30, 2005, as an appropriation to the Indiana 

professional licensing agency. 

(c) Any reference in a law, a rule, a license, a registration, a 

certification, or an agreement to the health professions bureau shall be 

treated after June 30, 2005, as a reference to the Indiana professional 

licensing agency. 

IC 25-1-14-3 Member considered present 

Sec. 3. A member who participates in a meeting under section 2 of this 

chapter: 

(1) is considered to be present at the meeting; 

(2) shall be counted for purposes of establishing a quorum; and 

(3) may vote at the meeting. 


IC 25-1-14-4 Meeting memoranda requirements 

Sec. 4. The memoranda of the meeting prepared under IC 5-14-1.5-4 

must state the name of: 

(1) each member who was physically present at the place where the 

meeting was conducted; 

(2) each member who participated in the meeting by using a means 

of communication described in section 2 of this chapter; and 

(3) each member who was absent. 


48

TITLE 876 INDIANA REAL ESTATE COMMISSION 

ARTICLE 1. GENERAL PROVISIONS 

Rule 1. Definitions; Licensing; Miscellaneous Provisions 

876 IAC 1-1-1 Authority; purpose 

Authority: IC 25-34.1-2-5 

Affected: IC 25-34.1 

Sec. 1. The fundamental and primary purpose of the real estate 

commission is to safeguard the public interest through encouraging and 

requiring high standards of knowledge; through encouraging ethical 

practices; through disciplining of licensees who engage in dishonest, 

fraudulent, or criminal activities in the conduct of real estate transactions; 

and through causing the prosecution of any person who violates IC 25- 

34.1 and the rules of the commission. 

(Indiana Real Estate Commission; Rule 2; filed Sep 28, 1977, 4:30 p.m.: 

Rules and Regs. 1978, p. 794; filed Dec 9, 1988, 1:25 p.m.: 12 IR 925, 

eff Jan 8, 1989; errata filed Dec 21, 1988, 3:45 p.m.: 12 IR 1209; 

readopted filed Jun 29, 2001, 9:56 a.m.: 24 IR 3824; readopted filed Jul 

19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 1-1-2 Effective date (Repealed) 

Sec. 2. (Repealed by Indiana Real Estate Commission; filed Dec 11, 

1986, 10:40 pm: 10 IR 881) 

876 IAC 1-1-3 Definitions 

Authority: IC 25-34.1-2-5; IC 25-34.1-2-5.1 

Affected: IC 25-34.1-3-2; IC 25-34.1-5 

Sec. 3. (a) The definitions in this section apply throughout this title. 

(b) “Person” means an individual, partnership, or corporation. 

(c) “Commission” means the Indiana real estate commission. 

(d) “Real estate” means any right, title, or interest in real property. 

(e) “License” means a right to perform, for compensation, any of the 

acts provided in IC 25-34.1-3-2, as evidenced by a valid pocket card 

issued by the Indiana real estate commission. 

(f) “Licensee” means one who holds a valid salesperson or broker 

license issued by the commission. 

(g) “Course approval” means approval of a broker or a salesperson 

course granted under IC 25-34.1-5 and 876 IAC 2, which is not expired, 

suspended, or revoked. 

(h) “Licensing agency” means the Indiana professional licensing 

agency. 

(i) “Principal broker” means the individual broker, including the broker 

designated as representative of a corporation or partnership whom the 

commission shall hold responsible for the actions of licensees who are 

assigned to the principal broker. 

(j) “Listing principal broker” means a principal broker who has a written 

contract with an owner, allowing him to sell, buy, trade, exchange, 

option, lease, rent, manage, list, or appraise real estate. 

(k) “Selling principal broker” means a principal broker who is acting on 

behalf of the buyer and who provides an accepted offer to purchase to 

the seller. 

(l) “Managing broker” means a broker who manages a branch office. 

(m) “Branch office” means a real estate broker’s office other than his 

principal place of business. 

(n) “Broker” means any person, partnership, or corporation, who holds 

a valid broker’s license issued by the commission. A person who, for 

consideration: 

(1) sells; 

(2) buys; 

(3) trades; 

(4) exchanges; 

49 

(5) options; 

(6) leases; 

(7) rents; 

(8) manages; 

(9) lists; 

(10) refers; or 

(11) appraises; 

real estate or negotiates or offers to perform any of those acts. 

(o) “Salesperson” means any person holding a valid salesperson’s 

license issued by the commission. An individual, other than a broker, 

who, for consideration and in association with and under the auspices of 

a principal broker: 

(1) sells; 

(2) buys; 

(3) trades; 

(4) exchanges; 

(5) options; 

(6) leases; 

(7) rents; 

(8) manages; or 

(9) lists; 

real estate or negotiates or offers to perform any of those acts. 

(p) “Broker-salesperson” means an individual who meets all the legal 

requirements of a broker but elects to operate in association with and 

under the auspices of a principal broker to whom his license is assigned. 

The broker-salesperson is subject to all rules and regulations applying to 

salespersons in association with a principal broker. 

(q) “He” shall also mean she. 

(r) “Owner/seller” means that person or persons of record in titled to 

having an interest in the property or their duly authorized representative. 

(s) “Referral” means the act of recommending or referring a sales lead 

that develops a client or customer. 

(t) “Referral service” means a company or part of a company or 

franchise system established for the purpose of recommending or 

referring client or customer leads to other brokers. 


Rules and Regs. 1978, p. 794; filed Mar 13, 1980, 2:30 p.m.: 3 IR 646; 

filed Dec 11, 1986, 10:40 a.m.: 10 IR 874; filed Dec 9, 1988, 1:25 p.m.: 

12 IR 925, eff Jan 8, 1989; errata filed Dec 21, 1988, 3:45 p.m.: 12 IR 

1209; errata filed May 15, 1989, 2:20 p.m.: 12 IR 1907; filed Jun 14, 

1995, 11:00 a.m.: 18 IR 2785; readopted filed Jun 29, 2001, 9:56 a.m.: 

24 IR 3824; filed Aug 15, 2001, 9:50 a.m.: 25 IR 101; readopted filed Jul 

19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 1-1-4 Licensing requirements (Repealed) 

Sec. 4. (Repealed by Indiana Real Estate Commission; filed Mar 13, 

1980, 2:50 pm: 3 IR 649) 

876 IAC 1-1-5 Approval of courses of study; application; criteria 

(Repealed) 


1988, 1:25 p.m.: 12 IR 936, eff Jan 8, 1989; errata filed Dec 21, 1988, 

3:45 p.m.: 12 IR 1209. 

876 IAC 1-1-6 Examinations (Repealed) 


1980, 2:50 pm: 3 IR 649) 

876 IAC 1-1-6.5 Examinations; passing score (Repealed) 

Sec. 6.5. (Repealed by Indiana Real Estate Commission; filed Dec 9, 


3:45 p.m.: 12 IR 1209)

876 IAC 1-1-7 Application for examination; fee; instructors 

(Repealed) 



3:45 p.m.: 12 IR 1209) 

876 IAC 1-1-7.5 Extension of application deadline for subsequent 

application (Repealed) 

Sec. 7.5. (Repealed by Indiana Real Estate Commission; filed Dec 30, 

1981, 3:25 pm: 5 IR 399) 

876 IAC 1-1-8 Name included on list of qualified applicants 

(Repealed) 


1980, 2:50 pm: 3 IR 649) 

876 IAC 1-1-9 Payment of fees and submission of documents after 

passing (Repealed) 


1980, 2:50 pm: 3 IR 649) 

876 IAC 1-1-10 Application of salesperson for broker's license 

(Repealed) 


1980, 2:50 pm: 3 IR 649) 

876 IAC 1-1-11 Application for corporation or partnership license 


Affected: IC 25-34.1-3-3.1 

Sec. 11. Applicants for licensure as a corporation, or partnership must 

have a sponsoring or responsible individual duly licensed as a real estate 

broker within the partnership or corporation. All licensees associated with 

the brokerage firm shall be supervised on site by said responsible broker. 

All employees, agents, and officers of said corporation who intend to or 

do engage in the sale of real estate or perform duties of real estate 

salespersons or brokers must possess an active broker's or 

salesperson's license. All corporations must provide a copy of the 

Certificate of Incorporation with the application for licensure. 

(Indiana Real Estate Commission; Rule 12; filed Sep 28, 1977, 4:30 pm: 

Rules and Regs. 1978, p. 798; filed Sep 12, 1978, 3:46 pm: 1 IR 718; 

filed Dec 11, 1986, 10:40 am: 10 IR 877; readopted filed Jun 29, 2001, 

9:56 a.m.: 24 IR 3824; readopted filed Jul 19, 2007, 12:57 p.m.: 

20070808-IR-876070067RFA) 

876 IAC 1-1-12 Partnership license (Repealed) 


1986, 10:40 am: 10 IR 881) 

876 IAC 1-1-13 Expiration of license; reinstatement (Repealed) 


1980, 2:50 pm: 3 IR 649) 

876 IAC 1-1-14 Reinstatement of inactive license (Repealed) 


1980, 2:50 pm: 3 IR 649) 

876 IAC 1-1-15 Schedule of fees (Repealed) 


1980, 2:50 pm: 3 IR 649) 

876 IAC 1-1-16 Insufficiency of fee payment; opportunity to make 

proper payment (Repealed) 

50 


1980, 2:50 pm: 3 IR 649) 

876 IAC 1-1-17 Evidence of current licensure 


Affected: IC 25-34.1-3-3.1 

Sec. 17. Every real estate office shall maintain evidence of current 

licensure for all licensees associated with said office. Principal broker 

shall provide upon request of the commission or its investigators 

evidence of current licensure and a complete list of all licensees 

associated with said broker. 


Rules and Regs. 1978, p. 799; filed Dec 11, 1986, 10:40 am: 10 IR 877; 


19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 1-1-18 Supervision of office by licensed broker; branch 

offices; notice by principal broker 


Affected: IC 25-34.1-3-3.1; IC 25-34.1-3-4.1 

Sec. 18. Every real estate office or real estate branch office whether 

operated as a corporation, partnership, or sole proprietorship, shall be 

directed, supervised, and managed by a licensed real estate broker. The 

office or branch office shall constitute the managing broker's principal 

and sole place of real estate business. Said managing broker may be 

the principal broker in cases where there is only one office. The principal 

broker must submit to the commission a Branch Office Registration 

Form prior to the opening of any branch office. Said principal broker 

shall notify the commission when any licensee associated with said 

principal broker transfers from one branch office to another branch office 

within the same association. 


Rules and Regs. 1978, p. 799; filed Mar 13, 1980, 2:30 pm: 3 IR 647; 

filed Dec 11, 1986, 10:40 am: 10 IR 877; readopted filed Jun 29, 2001, 


20070808-IR-876070067RFA) 

876 IAC 1-1-19 Termination of association with principal broker; 

duties of parties 

Authority: IC 25-1-8-2; IC 25-34.1-2-5 

Affected: IC 25-34.1-3-3.1; IC 25-34.1-3-4.1 

Sec. 19. Any licensee, upon termination of his or her association with 

a principal broker, shall turn over to the principal broker any and all 

listings obtained during his association unless otherwise stipulated by a 

written contract. The listings shall remain the property of the principal 

broker whether originally given to the licensee by the principal broker or 

copied from the records of the broker. The principal broker of a 

terminated salesperson is responsible for submitting to the commission 

within five (5) business days of the termination, a notification form 

provided by the commission and signed by the terminating broker and 

attesting to the termination. In the event the terminated licensee is 

transferring to a new principal broker, it shall be the responsibility of the 

licensee to provide the commission with a transfer application signed by 

the licensee and the new principal broker and pay a ten dollar ($10) 

transfer fee. The licensee is responsible for submitting to the 

commission the transfer application at the time of this association with 

another principal broker. The broker-salesperson’s or salesperson’s 

license will remain in the commission’s unassigned file of licensees who 

are currently not associated with a principal broker until a transfer 

application is timely received. A licensee who terminates his association 

with a principal broker must immediately notify the commission of his or 

her change of address. 


Rules and Regs. 1978, p. 799; filed Jan 16, 1979, 11:55 a.m.: 2 IR 315;

filed Mar 13, 1980, 2:40 p.m.: 3 IR 648; filed Dec 11, 1986, 10:40 a.m.: 

10 IR 877; readopted filed Jun 29, 2001, 9:56 a.m.: 24 IR 3824; filed Oct 

23, 2003, 4:00 p.m.: 27 IR 877; readopted filed Jul 19, 2007, 12:57 p.m.: 

20070808-IR-876070067RFA) 

876 IAC 1-1-20 Splitting commissions 


Affected: IC 25-34.1-3-4.1 

Sec. 20. A listing principal broker may offer a portion of his 

commission as an inducement to selling principal brokers to sell a 

particular property. Such commission must be paid to the selling 

principal broker and in no case shall it be paid directly to a licensee 

associated with the selling principal broker. 




19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 1-1-21 Associating with unlicensed person; penalty 


Affected: IC 25-34.1-6-1.1 

Sec. 21. Any principal broker found guilty of associating with any 

person and allowing said person to perform any of the acts set forth in 

the definition of a licensee, whether an initial applicant or a transfer, 

before the said person is properly licensed, shall be, after notice and 

hearing, subject to suspension or revocation of his license. 




19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 1-1-22 Listing agreements; prohibition 


Affected: IC 25-34.1-2-5 

Sec. 22. All listing agreements or any authority to sell shall show a 

definite date of expiration and shall be in writing, made in duplicate, one 

copy to go to the owner at the time of signing, and the original to be 

retained in the office of the principal broker. No listing agreements shall 

be accepted by a principal broker or by an associated broker or 

salesperson on the principal broker's behalf which provides for a “net” 

return to the seller, unless said listing agreement provides for a maximum 

commission to be paid by the seller to the principal broker. 


Rules and Regs. 1978, p. 800; readopted filed Jun 29, 2001, 9:56 a.m.: 

24 IR 3824; readopted filed Jul 19, 2007, 12:57 p.m.: 20070808-IR- 

876070067RFA) 

876 IAC 1-1-23 Written offers to purchase; disposition of money 

received 



Sec. 23. (a) Any and all written offers to purchase or authorization to 

purchase shall be communicated to the seller for his or her formal 

acceptance or rejection immediately upon receipt of the offer, and the 

offers or authorizations shall be made in quadruplicate, one (1) copy to 

the prospective purchasers at the time of signing, one (1) copy for the 

principal broker’s files, one (1) copy to the sellers, and one (1) copy to 

be returned to the purchasers after acceptance or rejection. The listing 

principal broker shall, on or before the next two (2) banking days after 

acceptance of the offer to purchase by the seller, do one (1) of the 

following: 

(1) Deposit all money received in connection with a transaction in 

his or her escrow/trust account. 

51 

(2) Delegate the responsibility to the selling principal broker to 

deposit the money in the selling broker’s escrow/trust account. 

In any event, the commission shall hold the listing principal broker 

responsible for the money. In the event the earnest money deposit is 

other than cash, this fact shall be communicated to the seller before his 

or her acceptance of the offer to purchase, and the fact shall be shown 

in the earnest money receipt. All money shall be retained in the 

escrow/trust account so designated until disbursement thereof is 

properly authorized. Provided the beneficiary agrees in writing, the 

listing or selling principal broker holding the earnest money may 

voluntarily transfer any interest earned on the broker’s escrow/trust 

account to a fund established for the sole purpose of providing 

affordable housing opportunities in Indiana that meets the requirements 

of Internal Revenue Service Code 501C3. The listing or selling principal 

brokers holding any earnest money are not required to make payment to 

the purchasers or sellers when a real estate transaction is not 

consummated unless the parties enter into a mutual release of the funds 

or a court issues an order for payment, except as permitted in 

subsection (b). 

(b) Upon being notified that one (1) or more parties to an offer to 

purchase intend not to perform, the listing or selling principal broker, 

holding the earnest money, may release the earnest money deposit as 

provided in the offer to purchase or, if no provision is made in the offer 

to purchase, the selling or listing principal, holding the earnest money, 

may initiate the release process. The release process shall require the 

selling or listing principal broker to notify all parties at their last known 

address by certified mail that the earnest money deposit shall be 

distributed to the parties specified in the letter unless: 

(1) all parties enter into a mutual release; or 

(2) one (1) or more of the parties initiate litigation; 

within sixty (60) days of the mailing date of the certified letter. If neither 

the buyer nor the seller initiates litigation or enters into a written release 

within sixty (60) days of the mailing date of the certified letter, the broker 

may release the earnest money deposit to the party identified in the 

certified letter. 


Rules and Regs. 1978, p. 800; filed Dec 11, 1986, 10:40 a.m.: 10 IR 878; 

readopted filed Jun 29, 2001, 9:56 a.m.: 24 IR 3824; filed Aug 15, 2001, 

9:50 a.m.: 25 IR 102; filed Oct 28, 2002, 12:01 p.m.: 26 IR 789; filed Jan 

27, 2006, 10:45 a.m.: 29 IR 1931; readopted filed Jul 19, 2007, 12:57 

p.m.: 20070808-IR-876070067RFA) 

876 IAC 1-1-24 Closing statements 



Sec. 24. Every listing and selling principal broker shall deliver to their 

client in every real estate transaction wherein he or she acts as real 

estate broker, at the time such transaction is consummated, a complete 

detailed closing statement showing all of the receipts and disbursements 

handled by such principal broker. The listing and selling principal broker 

shall retain true copies of such statements in his or her files for at least 

five (5) years. The listing and selling principal broker or his or her 

licensed associate acting on his or her behalf, shall attend all closings. 


Rules and Regs. 1978, p. 801; filed Jan 16, 1979, 11:55 a.m.: 2 IR 315; 

filed Dec 11, 1986, 10:40 a.m.: 10 IR 878; readopted filed Jun 29, 2001, 

9:56 a.m.: 24 IR 3824; filed Aug 15, 2001, 9:50 a.m.: 25 IR 102; 

readopted filed Jul 19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 1-1-25 Investigation of escrow or trust accounts 



Sec. 25. A principal broker shall provide a detailed summary of his 

escrow/trust account upon request by the Indiana Real Estate

Commission or the Office of the Attorney General for investigative 

purposes. A principal broker or firm which holds an active Indiana real 

estate license and engages in activities constituting acts as prescribed 

in the Indiana license laws involving monies being collected in the 

performance of such activities, shall establish an escrow/trust account 

with an Indiana financial institution as set forth in the Commission Rules 

and Regulations and the Real Estate License Laws of the state of 

Indiana. 




19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 1-1-26 Advertising requirements; name of principal broker; 

prohibitions 


Affected: IC 25-34.1-3-3.1; IC 25-34.1-3-4.1 

Sec. 26. Any display, classified advertising, signs, Internet advertising, 

or business cards, which carries [sic., carry] a licensee’s name must 

contain the name of the principal broker or firm with whom the licensee 

is associated, and, except for business cards, said principal broker or 

firm’s name must be in letters larger than those used in advertising the 

licensee’s name. All advertising shall be under the direct supervision 

and in the name of the principal broker or firm; a salesperson’s name 

may not be a part of the firm name. Any advertising by a principal broker 

must reveal the surname of said broker as it appears on the broker’s 

license issued by the commission. Any television or radio advertising 

that carries the name of any licensee associated with a principal broker 

must carry the name of the principal broker or firm, as licensed by the 

commission. A licensee shall not advertise in a manner indicating that 

the property is being offered by a private party not engaged in the real 

estate business and shall use no advertising where only a post office 

box number, telephone number, or street address appears. No licensee 

shall place a sign on any property, advertise or offer any property for 

sale, lease, or rent without the written consent of the seller or the seller’s 

authorized agent. 


Rules and Regs. 1978, p. 801; filed Mar 13, 1980, 2:30 p.m.: 3 IR 648; 

filed Dec 11, 1986, 10:40 a.m.: 10 IR 879; readopted filed Jun 29, 2001, 

9:56 a.m.: 24 IR 3824; filed Aug 15, 2001, 9:50 a.m.: 25 IR 102; 


876 IAC 1-1-27 Operation of business under different name 

(Repealed) 


1980, 2:50 pm: 3 IR 649) 

876 IAC 1-1-28 Death of broker; effect (Repealed) 


1980, 2:50 pm: 3 IR 649) 

876 IAC 1-1-29 Duplicate licenses 



Sec. 29. A duplicate real estate license may be issued to any active 

licensee only after a sworn affidavit has been submitted to the 

Commission attesting that the original real estate license was either 

mutilated, lost, or destroyed. 


Rules and Regs. 1978, p. 802; filed Mar 13, 1980, 2:45 pm: 3 IR 649; 


19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

52 

876 IAC 1-1-30 Change of address; failure to notify commission; 

effect (Repealed) 


1980, 2:50 pm: 3 IR 649) 

876 IAC 1-1-30.1 Residential address of licensees 


Affected: IC 25-34.1-3-4.1; IC 25-34.1-3-6 

Sec. 30.1. In addition to complying with IC 25-34.1-3-6, each licensee 

shall immediately notify the commission of any change in the licensee’s 

residential address. 

(Indiana Real Estate Commission; 876 IAC 1-1-30.1; filed May 27, 2003, 


20070808-IR-876070067RFA) 

876 IAC 1-1-31 Complaints (Repealed) 

Sec. 31. (Repealed by Indiana Real Estate Commission; filed Apr 12, 

1983, 10:55 am: 6 IR 1091) 

876 IAC 1-1-32 Administrative Adjudication Act followed in 

handling complaints (Repealed) 


1980, 2:50 pm: 3 IR 649) 

876 IAC 1-1-33 Conviction of crime; effect; denial of license 



Sec. 33. Upon conviction of a licensee in any court of competent 

jurisdiction of any crime involving dishonesty or false statement, 

obtaining money under false pretenses, conspiracy to defraud, or any 

other like offense in this state or any other state, the Real Estate 

Commission, after notice and hearing, shall determine if the acts from 

which such conviction resulted have a direct bearing on whether the 

licensee should be entrusted to serve the public in the capacity of a real 

estate broker or salesperson. Any application for licensing as a broker or 

salesperson, however, shall not be denied solely on the basis of such 

conviction. 




19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 1-1-34 Licensing of nonresidents; association with Indiana 

broker (Repealed) 


1980, 2:50 pm: 3 IR 649) 

876 IAC 1-1-35 Reciprocal agreements (Repealed) 


1980, 2:50 pm: 3 IR 649) 

876 IAC 1-1-36 Restriction on licensee acquiring interest in 

property 



Sec. 36. A licensee shall not directly or indirectly buy, offer to buy, 

sell, offer to sell, for himself property listed with said licensee or the 

broker with whom he is associated, nor shall the licensee acquire any 

interest therein without first making his true position clearly known to the 

listing owner(s). 




19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA)

876 IAC 1-1-37 Disclosure of interest by licensee 



Sec. 37. A licensee shall not directly or indirectly buy, offer to buy, 

sell, offer to sell or receive compensation for property in which he owns 

an interest, unless he shall disclose in writing his interest to all parties to 

the transaction and the fact that he holds a valid real estate license. 




19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 1-1-38 Prohibition where exclusive contract exists 

(Repealed) 


1986, 10:40 am: 10 IR 881) 

876 IAC 1-1-39 Referral service participation; written agreement 


Affected: IC 25-34.1-3-4.1 

Sec. 39. A principal broker may participate in a referral service, or a 

franchise which provides a referral service, provided said participating 

broker possesses a written agreement with his client. Said broker shall 

also have a written agreement with the cooperating broker(s) as to the 

fees to be paid. 




19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 1-1-40 Incompetent practice 


Affected: IC 22-9; IC 25-34.1 

Sec. 40. Incompetent practice of real estate includes the following: 

(1) Failing to account for and remit any funds or documents 

belonging to others that come into the licensee's possession. 

(2) Accepting or offering any inducement or rebate for the purpose 

of obtaining a listing or inducing a sale, where full disclosure in 

writing has not been given to all parties to the transaction at the 

time of the offer or acceptance. 

(3) Receiving, accepting, or giving an undisclosed direct profit on 

expenditures made in conjunction with a real estate transaction. 

(4) Acting in dual capacity of licensee and undisclosed client in any 

transaction. 

(5) Guaranteeing, authorizing, or permitting any person to 

guarantee future profits that may result from the resale of real 

property. 

(6) Listing or offering real property for sale, exchange, option, rent, 

or lease without the written consent of, or on any terms other than 

those authorized by, the owner or the owner's authorized agent. 

(7) Inducing any party to a listing contract or a contract of sale to 

breach such contract for the purpose of substituting a new contract 

with another person. 

(8) Accepting employment or compensation that is contingent upon 

the issuance of an appraisal report on real estate at a 

predetermined value. 

(9) Issuing an appraisal report on real property in which the licensee 

fails to disclose his interest in that property in writing to all parties. 

(10) Soliciting and/or negotiating a listing contract, a sale, 

exchange, or lease of real property directly with an owner or lessor 

if the licensee knows that the owner has a written contract in 

connection with the property that guarantees an exclusive agency to 

another licensee unless the owner initiates the action in writing prior 

to expiration of the listing. 

(11) As a licensee representing, or attempting to represent, a 

principal broker other than the principal broker with whom the 

licensee is associated. 

(12) Paying a commission to or otherwise compensating a person 

who is not licensed for performing the services that, by law, require 

a license. 

(13) Requesting a license by a principal broker if that principal 

broker does not intend to be associated with that licensee. 

(14) Committing any act of fraud or misrepresentation while 

engaged in acts that, by law, require a license. 

(15) Otherwise violating IC 25-34.1 or this title. 

(16) Having been convicted of a felony or misdemeanor if the acts 

on which that conviction are based have a direct bearing on 

whether or not the person should be entrusted to serve the public 

as a licensee. 

(17) Having been finally determined to have engaged in an unlawful 

discriminatory practice under the Indiana Civil Rights Act, IC 22-9. 

(18) A broker, knowingly allowing any of its employees or 

representatives to utilize the premises of a real estate school for 

recruiting purposes in violation of 876 IAC 2-5-1. 

(Indiana Real Estate Commission; Rule 40; filed Dec 13, 1982, 9:00 a.m.: 

6 IR 122; filed Mar 15, 1984, 3:00 p.m.: 7 IR 1252; filed Dec 11, 1986, 

10:40 a.m.: 10 IR 880; filed Dec 9, 1988, 1:25 p.m.: 12 IR 926, eff Jan 8, 

1989; errata filed Dec 21, 1988, 3:45 p.m.: 12 IR 1209; errata filed May 

15, 1989, 2:20 p.m.: 12 IR 1907; filed Jun 14, 1995, 11:00 a.m.: 18 IR 

2786; readopted filed Jun 29, 2001, 9:56 a.m.: 24 IR 3824; readopted 

filed Jul 19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 1-1-41 Participation of licensees with securities brokers; 

sale of securities involving real estate 



Sec. 41. Notwithstanding any rule contained within this Title 876 to the 

contrary, a broker may participate or associate with a person registered 

to act as a broker-dealer, agent or investment advisor under the Indiana 

and federal securities laws in the sale of, or offer to sell, real estate 

where such real estate is a necessary element of a “security”, as that 

term is defined by the Securities Act of 1933 and the Securities 

Exchange Act of 1934. Any fee for services received by a registered 

securities broker-dealer, agent or investment advisor in connection with 

the above-described activities shall not be construed to constitute the 

receipt or payment of a commission from a broker in contravention of 

876 IAC 1-1-40(12). 

(Indiana Real Estate Commission; 876 IAC 1-1-41; filed Mar 5, 1985, 

8:23 am: 8 IR 805; filed Dec 11, 1986, 10:40 am: 10 IR 881; readopted 

filed Jun 29, 2001, 9:56 a.m.: 24 IR 3824; readopted filed Jul 19, 2007, 

12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 1-1-42 Unlicensed assistants; functions; responsibility of 

licensee 



Sec. 42. Licensees may not allow an unlicensed assistant to perform 

any act that would require licensure under IC 25-34.1-3-2, including the 

following functions: 

(1) Prepare promotional materials or advertisements without the 

review and approval of the supervising licensee. 

(2) Show real property. 

(3) Answer questions about listings other than those concerning list 

price, address, or geographic directions. 

53

(4) Discuss or explain a contract, listing, lease, agreement, or other 

real estate document with any broker or salesperson outside the 

licensee's firm or with any potential client or customer. 

(5) Conduct open houses. 

(6) Conduct telemarketing or telephone canvassing to schedule 

appointments in order to seek listings. 

(7) Negotiate or agree to any commission, commission split, 

management fee, or referral fee on behalf of a licensee. 

(Indiana Real Estate Commission; 876 IAC 1-1-42; filed Jun 14, 1995, 

11:00 a.m.: 18 IR 2783; readopted filed Jun 29, 2001, 9:56 a.m.: 24 IR 

3824; readopted filed Jul 19, 2007, 12:57 p.m.: 20070808-IR- 

876070067RFA) 

876 IAC 1-1-43 Fee appraisals conducted by licensed brokers 

Authority: IC 25-34.1-2-5.1 


Sec. 43. Any broker who appraises real estate in Indiana must comply 

with the Uniform Standards of Professional Appraisal Practice as 

adopted in 876 IAC 3-6-2 and 876 IAC 3-6-3. 

(Indiana Real Estate Commission; 876 IAC 1-1-43; filed Dec 24, 1997, 

11:00 a.m.: 21 IR 1757, eff Jan 1, 1999; readopted filed Jun 29, 2001, 


20070808-IR-876070067RFA) 

Rule 2. Out-of-State Developments (Repealed) 

(Repealed by Indiana Real Estate Commission; filed Mar 13, 1980, 

2:50 pm: 3 IR 649) 

Rule 3. Condominiums and Time Sharing Plans (Repealed) 

(Repealed by Indiana Real Estate Commission; filed Mar 13, 1980, 

2:50 pm: 3 IR 649) 

Rule 4. Residential Real Estate Sales Disclosure 

876 IAC 1-4-1 Residential real estate sales disclosure 

Authority: IC 32-21-5-7 

Affected: IC 32-21-5-7 

Sec. 1. (a) This rule establishes the seller’s residential real estate 

sales disclosure form provided for in IC 32-21-5-7. 

(b) The form appears in section 2 of this rule. 

(Indiana Real Estate Commission; 876 IAC 1-4-1; filed Jun 1, 1994, 5:00 

p.m.: 17 IR 2352; readopted filed Jun 29, 2001, 9:56 a.m.: 24 IR 3824; 

filed Aug 6, 2003, 12:00 p.m.: 27 IR 186) 

876 IAC 1-4-2 Residential sales disclosure; form 

Authority: IC 32-21-5-7 

Affected: IC 32-21-5 

Sec. 2. The following is the seller’s residential real estate sales 

disclosure form: 

(on next page) 

54

SELLER’S RESIDENTIAL REAL ESTATE SALES DISCLOSURE 

State Form 46234 (R/1293) 

Date (month, day, year) 

Seller states that the information contained in this Disclosure is correct to the best of Seller’s CURRENT ACTUAL KNOWLEDGE as of the above date. The prospective buyer and the owner may wish to 

obtain professional advice or inspections of the property and provide for appropriate provisions in a contract between them concerning any advice, inspections, defects, or warranties obtained on the 

property. The representations in this form are the representations of the owner and are not the representations of the agent, if any. This information is for disclosure only and is not intended to be a part of 

any contract between the buyer and the owner. Indiana law (IC 32-21-5) generally requires sellers of 1–4 unit residential property to complete this form regarding the known physical condition of the 

property. An owner must complete and sign the disclosure form and submit the form to a prospective buyer before an offer is accepted for the sale of the real estate. 

Property address (number and street, city, state, ZIP code) 

1. The following are in the conditions indicated: 

A. APPLIANCES 

Built-in Vacuum System 

Clothes Dryer 

Clothes Washer 

Dishwasher 

Disposal 

Freezer 

Gas Grill 

Hood 

Microwave Oven 

Oven 

Range 

Refrigerator 

Room Air Conditioner(s) 

Trash Compactor 

TV Antenna/Dish 

Other: 

B. ELECTRICAL SYSTEM 

Air Purifier 

Burglar Alarm 

Ceiling Fan(s) 

Garage Door Opener Controls 

Inside Telephone Wiring and 

Blocks/Jacks 

Intercom 

Light Fixtures 

Sauna 

Smoke/Fire Alarm(s) 

Switches and Outlets 

Vent Fan(s) 

60/100/200 Amp Service (Circle 

one) 

None/Not 

Included 

None/Not 

Included 

Defective 

Defective 

Not 

Defective 

Not 

Defective 

Do Not 

Know 

Do Not 

Know 

C. WATER & SEWER SYSTEM 

Cistern 

Septic Field/Bed 

Hot Tub 

Plumbing 

Aerator System 

Sump Pump 

Irrigation Systems 

Water Heater/Electric 

Water Heater/Gas 

Water Heater/Solar 

Water Purifier 

Water Softener 

Well 

Septic and Holding Tank/Septic Mound 

Geothermal and Heat Pump 

Other Sewer System (Explain) 

None/Not 

Included 

Defective 

Are the improvements connected to a public water system? 

Are the improvements connected to a public sewer system? 

Are there any additions that may require improvements to the sewage disposal 

system? 

If yes, have the improvements been completed on the sewage disposal 

system? 

Are the improvements connected to a private/community water system? 

Are the improvements connected to a private/community sewer system? 

None/Not 

D. HEATING & COOLING SYSTEM 

Included Defective 

Attic Fan 

Central Air Conditioning 

Hot Water Heat 

Furnace Heat/Gas 

Furnace Heat/Electric 

Solar House-Heating 

Woodburning Stove 

Fireplace 

Fireplace Insert 

Air Cleaner 

Humidifier 

Propane Tank 

Other Heating Source 

Not 

Defective 

Yes 

No 

Not 

Defective 

Do Not 

Know 

Do Not 

Know 

Do Not 

Know 

NOTE: “Defect” means a condition that would have a significant adverse effect on the value of the property that would significantly impair the health or safety of future occupants of the property or that, if 

not repaired, removed, or replaced, would significantly shorten or adversely affect the expected normal life of the premises. 

The information contained in this Disclosure has been furnished by the Seller, who certifies to the truth thereof, based on the Seller’s CURRENT ACTUAL KNOWLEDGE. A disclosure form is not a 

warranty by the owner or the owner’s agent, if any, and the disclosure form may not be used as a substitute for any inspections or warranties that the prospective buyer or owner may later obtain. At or 

before settlement, the owner is required to disclose any material change in the physical condition of the property or certify to the purchaser at settlement that the condition of the property is substantially 

the same as it was when the disclosure form was provided. Seller and Purchaser hereby acknowledge receipt of this Disclosure by signing below: 

Signature of Seller: Date: Signature of Buyer: Date: 


The Seller hereby certifies that the condition of the property is substantially the same as it was when the Seller’s Disclosure form was originally provided to the Buyer. 


55

Property Address (number and street, city, state, ZIP code) 

2. ROOF YES NO 

Age, if known: ________ Years 

Does the roof leak? 

Is there present damage to the roof? 

Is there more than one roof on the house? 

If so, how many layers? __________ 

DO NOT 

KNOW 4. OTHER DISCLOSURES YES NO 

Do improvements have aluminum wiring? 

Are there any foundation problems with the improvements? 

Are there any encroachments? 

Are there any violations of zoning, building codes, or restrictive 

covenants? 

Is the present use a nonconforming use? Explain: 

DO NOT 

KNOW 

3. HAZARDOUS CONDITIONS YES NO 

Have there been or are there any hazardous conditions on 

the property, such as methane gas, lead paint, radon gas in 

house or well, radioactive material, landfill, mineshaft, 

expansive soil, toxic materials, mold, other biological 

contaminants, asbestos insulation, or PCB’s? 

Explain: 

DO NOT 

KNOW 

E. ADDITIONAL COMMENTS AND/OR EXPLANATIONS: (Use additional pages if necessary). 

Is the access to your property via a private road? 

Is the access to your property via a public road? 

Is access to your property via an easement? 

Have you received any notices by any governmental or quasigovernmental 

agencies affecting this property? 

Are there any structural problems with the building? 

Have any substantial additions or alterations been made without 

a required building permit? 

Are there moisture and/or water problems in the basement, crawl 

space area, or any other area? 

Is there any damage due to wind, flood, termites, or rodents? 

Have any improvements been treated for wood destroying 

insects? 

Are the furnace/woodstove/chimney/flue all in working order? 

Is the property in a flood plain? 

Do you currently pay flood insurance? 

Does the property contain underground storage tank(s)? 

Is the homeowner a licensed real estate salesperson or broker? 

Is there any threatened or existing litigation regarding the 

property? 

Is the property subject to covenants, conditions, and/or 

restrictions of a homeowner’s association? 

Is the property located within one (1) mile of an airport? 

The information contained in this Disclosure has been furnished by the Seller, who certifies to the truth thereof, based on the Seller’s CURRENT ACTUAL KNOWLEDGE. A disclosure form is not a 

warranty by the owner or the owner’s agent, if any, and the disclosure form may not be used as a substitute for any inspections or warranties that the prospective buyer or owner may later obtain. At or 

before settlement, the owner is required to disclose any material change in the physical condition of the property or certify to the purchaser at settlement that the condition of the property is substantially 

the same as it was when the disclosure form was provided. Seller and Purchaser hereby acknowledge receipt of this Disclosure by signing below: 



The seller hereby certifies that the condition of the property is substantially the same as it was when the Seller’s Disclosure form was originally provided to the Buyer. 

Signature of Seller: Date: Signature of Seller: Date: 

56

(Indiana Real Estate Commission; 876 IAC 1-4-2; filed Jun 1, 1994, 5:00 

p.m.: 17 IR 2352; filed Jun 14, 1995, 11:00 a.m.: 18 IR 2787; readopted 

filed Jun 29, 2001, 9:56 a.m.: 24 IR 3824; filed Oct 28, 2002, 12:01 p.m.: 

26 IR 789; filed Aug 6, 2003, 12:00 p.m.: 27 IR 186, eff Jan 1, 2004; filed 

Jan 27, 2006, 10:30 a.m.: 29 IR 1932, eff Jan 1, 2006 [IC 4-22-2-36 

suspends the effectiveness of a rule document for 30 days after filing 

with the Secretary of State. LSA Document #05-101(F) was filed Jan 27, 

2006.]) 

ARTICLE 2. REAL ESTATE COURSES AND LICENSING 

REQUIREMENTS FOR BROKERS AND SALESPERSONS 

Rule 1. Definitions; General Provisions 

876 IAC 2-1-1 Scope 


Affected: IC 25-34.1-5 

Sec. 1. (a) This article establishes requirements for the education and 

examination of applicants for licensure as salespersons and brokers and 

establishes requirements for salesperson and broker courses pursuant to 

IC 25-34.1-5. 

(b) The definitions in this rule apply throughout this article. 

(Indiana Real Estate Commission; 876 IAC 2-1-1; filed Dec 9, 1988, 1:25 

p.m.: 12 IR 927, eff Jan 8, 1989; errata filed Dec 21, 1988, 3:45 p.m.: 12 

IR 1209; readopted filed Jun 29, 2001, 9:56 a.m.: 24 IR 3824; readopted 


876 IAC 2-1-2 “Course session” defined 



Sec. 2. “Course session” means a particular broker course or 

salesperson course conducted by a real estate school. 





876 IAC 2-1-3 “Real estate school” defined 



Sec. 3. “Real estate school” means any person that has, or is seeking 

to have, broker course or salesperson course approval from the 

commission pursuant to IC 25-34.1-5 and this article. 





876 IAC 2-1-4 “School” defined 



Sec. 4. “School” means real estate school. 





876 IAC 2-1-5 “School director” defined 



Sec. 5. “School director” means the individual responsible for real 

estate school administrative matters such as program development, 

scheduling of classes, advertising, maintaining facilities and equipment, 

recordkeeping, and general supervision of the instructional program. 





876 IAC 2-1-6 Violations of statute and rules 


Affected: IC 4-21.5-3; IC 4-21.5-4; IC 25-34.1-5 

Sec. 6. (a) Failure of a real estate school to comply with the provisions 

of IC 25-34.1-5 and this article, shall subject it to denial of course 

approval or revocation or suspension of course approval as appropriate. 

(b) If a real estate school fails to meet the requirements for course 

approval renewal established in IC 25-34.1-5-7 and 876 IAC 2-2-9, the 

renewal shall be denied. 

(c) Under subsections (a) through (b), real estate schools shall be 

responsible for the actions of their employees and other agents. 

(d) Notices of denials of course approval or renewals and 

administrative review of such denials are governed by IC 4-21.5-3-4 and 

IC 4-21.5-3-7. 

(e) Institution of proceedings to revoke or suspend course approval is 

governed by IC 4-21.5-3-8. Emergency suspensions may be issued, 

where appropriate, under IC 4-21.5-4. 





876 IAC 2-1-7 Revocation, suspension, or denial of renewal of 

course approval; completion of courses 



Sec. 7. In the event it suspends, revokes, or denies renewal of course 

approval, the commission may, at its discretion, allow any course already 

in progress to be completed. 



IR 1209; filed Jul 25, 1991, 3:30 p.m.: 14 IR 2255; readopted filed Jun 


p.m.: 20070808-IR-876070067RFA) 

876 IAC 2-1-7.5 Payments of bond proceeds 



Sec. 7.5. (a) If the commission does not allow completion of a course 

under section 7 of this rule or if a course cannot be completed by the 

school for any other reason, each student enrolled in the course, who 

has a valid legal cause of action against the school, would be entitled to 

reimbursement for the enrollment fee and the cost of any required text or 

material if not included in the enrollment fee (provided the student 

presents proof of payment in connection with the uncompleted course) 

from the school's bond proceeds if said money cannot be recovered from 

the school. 

(b) Because the commission is obligee under the bonds of schools, 

payments from the proceeds of the bond shall be distributed to qualifying 

students by direction of the commission. 

(Indiana Real Estate Commission; 876 IAC 2-1-7.5; filed Jul 25, 1991, 

3:30 p.m.: 14 IR 2256; readopted filed Jun 29, 2001, 9:56 a.m.: 24 IR 


876070067RFA) 

57

876 IAC 2-1-8 Application for course approval; content 



Sec. 8. (a) Any real estate school seeking approval of a broker or 

salesperson course shall make written application for approval and shall 

submit such documents, statements, and forms as required by IC 25- 

34.1-5-2 and this article, and as may be reasonably necessary to 

establish whether the school complies with the requirements of IC 25- 

34.1-5 and this article. 

(b) The application shall state the name and address of the school's 

owner. 

(c) The application shall list all instructors who will be teaching the 

course and include evidence that they comply with the qualifications 

established in 876 IAC 2-3. 





Rule 2. Real Estate Schools; General Requirements 

876 IAC 2-2-1 Facilities 



Sec. 1. (a) Pursuant to IC 25-34.1-5-4(b), real estate courses shall not 

be conducted in a facility which is also used as a broker or salesperson 

office. As used in this subsection [section], “facility” shall mean any space 

which is used by a real estate broker or salesperson in the broker or 

salesperson's day to day operation. 

(b) Real estate schools shall use classroom facilities and shall be 

conducive to classroom environment. 

(c) There shall be at all times adequate space, seating, equipment, and 

instructional material to accommodate the number of students enrolled. 

(d) The premises, equipment, and facilities of the school shall comply 

with all local, city, county, and state regulations, such as fire, building, 

and sanitation codes. 

(e) Real estate schools shall prohibit the serving or obtaining of 

alcoholic beverages in the classroom and any other area that the student 

would have access to during the time class is in session, including 

breaks, such as the restroom and hallways. 

(f) Subsection (e) shall not be interpreted to prohibit the use of facilities 

(such as hotels, motels, and convention centers) where alcoholic 

beverages are sold in separate rooms. 





876 IAC 2-2-2 Course location and times; notice to commission 



Sec. 2. A list of course locations (which have been approved by the 

commission under IC 25-34.1-5-8 and section 12 of this rule) and 

meeting times must be submitted to the commission prior to 

commencement of each course session. 



IR 1209; readopted filed Jun 29, 2001, 9:56 a.m.: 24 IR 3824 ; readopted 


876 IAC 2-2-3 Bonding 



Sec. 3. If a real estate school offers both a broker course and a 

salesperson course, it shall submit a bond meeting the requirements of 

IC 25-34.1-5, for each course. 





876 IAC 2-2-4 School directors 



Sec. 4. (a) Each school shall designate one (1) individual as its school 

director. 

(b) A real estate school is prohibited from hiring, or retaining in its 

employ, a school director who: 

(1) has had his or her real estate license revoked or suspended by 

any jurisdiction; 

(2) has obtained or used, or attempted to obtain or use, in any 

manner, Indiana real estate licensing examination questions to be 

used on future examinations, unless authorized by law; 

(3) has been convicted of a crime which has a direct bearing on the 

individual's ability to competently be a school director including, but 

not necessarily limited to, violations of real estate laws and abuse of 

fiduciary responsibilities; 

(4) has falsely certified hours of attendance or grades for any 

student; 

(5) has violated 876 IAC 2-5-1 concerning recruiting during the 

educational process; or 

(6) unless authorized by law, has refused to appear and/or testify 

under oath at any hearing held by the commission. 

(c) The school director must satisfy one (1) of the following qualification 

standards: 

(1) Hold a bachelor's degree in education, real estate, or business. 

(2) Have at least two (2) years experience within the past ten (10) 

years as an instructor or school administrator. 

(d) School directors employed before January 1, 1989, are exempt 

from the requirements of subsection (c). 



IR 1209; errata filed May 15, 1989, 2:20 p.m.: 12 IR 1907; readopted filed 

Jun 29, 2001, 9:56 a.m.: 24 IR 3824; readopted filed Jul 19, 2007, 12:57 

p.m.: 20070808-IR-876070067RFA) 

876 IAC 2-2-5 Course approval; school directors 



Sec. 5. (a) The school director shall be identified in an application for 

course approval. 

(b) The school director for a school which has applied for course 

approval shall be required to meet with the commission or its designee 

prior to approval of the course. 





876 IAC 2-2-6 Unavailability of school director 



Sec. 6. If a school director: 

(1) dies; 

(2) becomes incapacitated; or 

(3) leaves the employ of the school; 

58

all course sessions then in session may be completed. However, further 

course sessions may not be commenced until there is a new school 

director (who has been approved by the commission under IC 25-34.1-5- 

8 and section 12 of this rule). 





876 IAC 2-2-7 Student fees; cancellation of course sessions 



Sec. 7. (a) Students shall not be charged any fees beyond the course 

fee. An approved course shall not charge a fee to students for seminars 

or other courses offered in preparation for the state licensing 

examination. This applies to students who are currently enrolled in a 

course or have completed a course within the past thirty (30) days. 

(b) The cost of textbooks, supplemental texts, and required materials 

shall be included in the course fee. However, colleges or universities of 

learning (institutions offering two (2) or four (4) year courses of study 

culminating in the issuance of an associate's or bachelor's degree) 

offering the salesperson or broker course for undergraduate or graduate 

credit may follow their normal institutional procedures and charge 

separately for tuition and books and required materials. Disclosure of the 

full cost of the course (including tuition and books and required materials) 

must be made to the student before enrollment. 

(c) Each approved course shall establish a refund policy which is 

included in all printed material related to the offering of the course. The 

refund policy shall be available for review and acceptance by the student 

at the time of enrollment. 

(d) If a course session is cancelled, the school must notify all 

individuals who have enrolled in it at least three (3) days in advance of 

the first scheduled class. 





p.m.: 20070808-IR-876070067RFA) 

876 IAC 2-2-8 Course records 



Sec. 8. As specified in IC 25-34.1-5-4(a)(7), each school offering 

approved courses must maintain records of students who successfully 

complete and pass the course of study for a minimum of five (5) years. 

The records must include attendance records, examination score 

records, and duplicate copies of completion certificates or the ability to 

reproduce duplicate completion certificates. 





876 IAC 2-2-9 Course renewal 



Sec. 9. The approval of courses expires on December 31 of each 

calendar year. To obtain renewal of course approval, the school must 

submit to the commission by November 30 of the current year: 

(1) a letter requesting renewal; 

(2) a bond that is in the amount of twenty percent (20%) of the 

preceding year's gross tuition but not less than ten thousand dollars 

($10,000) or more than fifty thousand dollars ($50,000); and 

(3) an annual report. 

59 





876 IAC 2-2-10 Annual report 



Sec. 10. (a) The annual report shall include the following: 

(1) A notarized report attesting to income received from course 

tuitions submitted on a form provided by the commission which must 

be signed by the school director. 

(2) A written list of the current textbooks and other resource and 

study materials utilized in the course. 

(3) A list of all approved course locations. 

(4) A list of all instructors teaching the course and a certification that 

the instructors meet the qualifications established in 876 IAC 2-3. 

(b) As part of its annual report to the commission, a school may be 

required to provide specific information, answer questions, and/or appear 

before the commission or its designee for the purpose of determining 

compliance with IC 25-34.1-5 and this article. 


1:25 p.m.: 12 IR 930, eff Jan 8, 1989; errata filed Dec 21, 1988, 3:45 

p.m.: 12 IR 1209; filed Dec 1, 1989, 5:00 p.m.: 13 IR 635; readopted filed 


p.m.: 20070808-IR-876070067RFA) 

876 IAC 2-2-11 Review and investigation of real estate schools 



Sec. 11. (a) In addition to its review and/or investigation of a school for 

annual renewal of its course(s) approval, the commission or its designee 

may, at any time, review and/or investigate any matter concerning an 

approved course, or applicant for course approval to determine 

compliance with IC 25-34.1-5 and this article. 

(b) The method of review shall be determined by the commission in 

each case and will generally consist of the following: 

(1) Consideration of information available from federal, state, and/or 

local agencies, private organizations or agencies, or interested 

persons. 

(2) Conferences with the school director and other representatives of 

the school involved, or with former students of the school. 

(c) The commission may require a background check on school 

personnel, including a criminal history check. 





876 IAC 2-2-12 Significant changes in courses 



Sec. 12. (a) The following shall be deemed significant changes under 

IC 25-34.1-5-8: 

(1) Any change in the ownership of a real estate school including 

changes in the ownership of the stock of a corporation. 

(2) Any change in the location, including classroom location, of an 

approved real estate course. 

(3) A new school director. 

(4) Any new instructor. 

(b) Significant proposed changes shall be submitted in writing for 

commission approval and shall include such information which may be 

necessary to establish whether the proposed change will be in 

compliance with IC 25-34.1-5 and this article.





Rule 3. Instructors 

876 IAC 2-3-1 Instructors; compliance with rule required 



Sec. 1. (a) All instructors employed by real estate schools must meet 

the requirements of this rule. 

(b) The commission does not license instructors or directly approve 

them although it does evaluate them in approving courses and significant 

changes in courses. 

(c) In the process of evaluating courses for original approval and 

significant changes relating to instructors, the commission or its designee 

may conduct a personal interview with proposed instructors. 





876 IAC 2-3-2 Instructors; examinations 



Sec. 2. (a) Each instructor shall be: 

(1) a licensed Indiana real estate broker or have passed the real 

estate broker examination; and 

(2) have passed an instructor assessment program examination as 

specified by the commission with a score of seventy-five percent 

(75%) or higher. 

(b) The real estate school shall keep records establishing that its 

instructors comply with this section. 





876 IAC 2-3-3 Instructors; qualifications 



Sec. 3. (a) Each instructor shall possess at least one (1) of the 

following minimum requirements: 

(1) Has a bachelor's degree with a major or minor in real estate from 

an accredited college or university. 

(2) Has a bachelor's degree from an accredited college or university 

and has a minimum of two (2) years experience in real estate. 

(3) Has an Indiana real estate broker license and has a minimum of 

five (5) years experience as a real estate broker in real estate 

practice as defined in 876 IAC 1-1-3(n) and (p). 

(4) Has a juris doctor or equivalent from an accredited law school 

and has a minimum of two (2) years experience in the subject matter 

to be taught in the course. 

(5) Has two (2) years experience as a qualified instructor or 

professor in the business, finance, or economics department of an 

accredited college or university. 

(b) An individual who: 

(1) was an instructor in an approved salesperson or broker course 

before January 1, 1989; and 

(2) does not meet the requirements of subsection (a); 

may continue to be an instructor with the same school or another school 

after December 31, 1989. 





876 IAC 2-3-4 Instructors; prohibitions 



Sec. 4. A real estate school is prohibited from hiring, or retaining in its 

employ, an instructor who: 

(1) has had his or her real estate license revoked or suspended by 

any jurisdiction; 

(2) has obtained or used, or attempted to obtain or use, in any 

manner, Indiana real estate licensing examination questions to be 

used on future examinations, unless authorized by law; 


individual's ability to competently instruct including, but not 

necessarily limited to, violations of real estate laws and abuse of 

fiduciary responsibilities; 

(4) has falsely certified hours of attendance or grades for any 

student; 

(5) has violated 876 IAC 2-5-1 concerning recruiting during the 

educational process; or 

(6) unless allowed by law, has refused to appear and/or testify under 

oath at any hearing held by the commission. 





Rule 4. Conduct of Courses 

876 IAC 2-4-1 Broker and salesperson courses; separate instruction 



Sec. 1. Schools offering both approved broker and salesperson 

courses must teach each course separately from the other. Joint 

instruction of both courses in any form is not permitted. 





876 IAC 2-4-2 Broker courses; hours of classroom instruction 



Sec. 2. (a) A broker course shall consist of at least fifty-four (54) hours 

of classroom instruction. 

(b) Each broker course shall be conducted on at least nine (9) different 

days with a maximum of six (6) hours of instruction per day. 

(c) The examinations required under section 6(b) of this rule may count 

toward the hours required by subsection (a). 





p.m.: 20070808-IR-876070067RFA) 

876 IAC 2-4-3 Salesperson course; hours of classroom instruction 



Sec. 3. (a) A salesperson course shall consist of at least fifty-four (54) 

hours of classroom instruction. 

60

(b) Each salesperson course shall be conducted on at least nine (9) 

different days with a maximum of six (6) hours of instruction per day. 

(c) The time spent taking the examinations required under section 6(a) 

of this rule may count toward the hours required by subsection (a). 





p.m.: 20070808-IR-876070067RFA) 

876 IAC 2-4-4 Breaks 



Sec. 4. (a) In both broker and salesperson courses, there shall be at 

least a five (5) minute break after two (2) hours of instruction. 

(b) In broker courses, there shall be at least a one (1) hour break after 

three (3) hours of instruction. 





876 IAC 2-4-5 Attendance 



Sec. 5. (a) A student in a broker or salesperson course session who is 

not in attendance for at least seventy-five percent (75%) of the required 

hours shall not be permitted to complete the course. 

(b) Each instructor shall maintain accurate attendance records and 

report to the school director when any student has exceeded the 

maximum number of absences. 

(c) A student may not receive attendance credit for attending more 

than one (1) class meeting of a class other than a class in the course 

session to which the student is assigned. The one (1) class must cover 

the same material as the class missed, the make up class must be 

completed during the regular class session, and must be sponsored by 

the school in which the student is enrolled. 

(d) All attendance shall be in the same course session and may not be 

cumulative. 





876 IAC 2-4-6 Examinations 



Sec. 6. (a) Each salesperson course shall be required to have three (3) 

written examinations with each examination consisting of one hundred 

(100) questions. A total of two hundred twenty-five (225) points from the 

three (3) examinations is required to pass the salesperson course. 

(b) Each broker course shall be required to have two (2) written 

examinations with each examination consisting of one hundred (100) 

questions. A total of one hundred fifty (150) points from the two (2) 

examinations is required to pass the broker course. 

(c) Dates of all examinations must be announced to the students at 

least one (1) day in advance, and examinations shall be evenly spaced 

throughout the course. 

(d) All examinations must be administered in the scheduled class 

session under the supervision of the course instructor. Take home 

examinations may not be credited toward the required passing score in 

the course. 

(e) The total score to pass a course can be based only on scores 

earned on the required in-class examinations. Class recitations and 

61 

quizzes cannot be used to supplement or take the place of examination 

grades. 

(f) Total security shall be provided for all examinations prior to, during, 

and after administration. Questions may not be distributed to students or 

discussed in class in advance. Students shall be prohibited from copying 

an examination after it has been administered. 

(g) An examination booklet and all answer sheets shall be retained by 

the sponsoring school for at least one (1) year. Examinations may be 

made available to students only for personal review in a supervised 

situation after the examinations have been graded and scores recorded. 

(h) Examinations administered in the broker and salesperson courses 

shall not be taken from the school premises under any circumstances. 

(i) Administration of make up examinations shall be at the discretion of 

the course instructor. If make up examinations are permitted, and the 

student is taking the examination prior to other students in the class, the 

same examination that will be used for the class shall be administered. If 

the student will be taking a make up examination after other students in 

the class, a different examination shall be used; however, the 

examination must cover the same subject content. 

(j) Each real estate school shall establish a written policy against 

cheating in its approved courses. 





876 IAC 2-4-7 Course evaluations 



Sec. 7. (a) Schools are required to survey their students at the end of 

each course session and/or after the students have taken the state 

licensing examination. 

(b) The survey should include information regarding the quality of 

instruction, appropriateness of materials, and other information which will 

properly evaluate the course. 

(c) Evaluations must be made available for inspection by the 

commission upon request. 





Rule 5. Real Estate Schools; Miscellaneous Prohibitions 

876 IAC 2-5-1 Recruiting; prohibitions 



Sec. 1. (a) No licensee, or representative of a licensee, partnership, or 

corporation, and no school or representative of a school, or instructor 

shall engage in recruiting within the classroom and any other area that 

the student would have access to during the time class is in session, 

including breaks, such as the restroom and hallway. Recruiting is defined 

as any solicitation of a licensee or prospective licensee for employment 

or association by any licensed individual, partnership, or corporation, or 

the promotion of such an entity to induce employment or association. 

(b) The distribution of any material or the wearing of any apparel which 

would identify a broker constitutes a violation of subsection (a). 

(c) Responding to an inquiry from a student does not constitute a 

violation of subsection (a). 

(d) If any individual violates subsection (a), schools and instructors 

shall be required to order violators to stop recruiting and report the 

activity to the commission for possible action against the violator. 


p.m.: 12 IR 933, eff Jan 8, 1989; errata filed Dec 21, 1988, 3:45 p.m.: 12



876 IAC 2-5-2 Requirements concerning recruiting 



Sec. 2. (a) The school shall distribute the following statement in writing, 

to each student at the beginning session of the course: 

“No recruiting for employment or association opportunities for any real 

estate broker is allowed in this class. You may report any effort to recruit 

to (name of school director) at (telephone number and/or office address) 

or the Indiana real estate commission at (317) 232-2980". 

(b) Before beginning any duties on behalf of the school, all employees, 

including instructors, shall be required to sign a nonrecruiting agreement, 

on a form obtained from the commission, agreeing not to violate section 

1 of this rule. The nonrecruitment agreement shall be retained by the 

school, and available to the commission upon request. 





876 IAC 2-5-3 Student lists 



Sec. 3. Unless required by law, no school may provide any name or list 

of names of any potential licensee(s) or student(s) whether potential or 

enrolled in any real estate school to anyone other than the commission, 

without the individual's written consent. 





876 IAC 2-5-4 Advertising 



Sec. 4. (a) No school conducting an approved course of study shall 

advertise or make any reference in its advertising, promotional material, 

brochures, and/or registration forms that it is endorsed, recommended, or 

accredited by, or affiliated with, the commission or any other person, 

organization, university, or college. 

(b) A school may indicate that a course of study has been approved by 

the commission, but may not indicate that any review course or 

supplemental course of instruction has the approval of the commission or 

any other person, organization, university, or college. 

(c) To the extent a school is endorsed, recommended, approved, or 

accredited by, or affiliated with, another person, organization, university, 

or college, the restrictions of subsections (a) through (b) shall not apply. 





p.m.: 20070808-IR-876070067RFA) 

876 IAC 2-5-5 Advertising; requirements 



Sec. 5. (a) Schools are prohibited from engaging in false or misleading 

advertising. 

(b) If a school's advertisement contains representations concerning the 

number or percentage of its students who pass the commission's broker 

or salesperson examination, the school shall retain information including 

the raw data and the calculation substantiating the accuracy of the 

representations and make it available to the commission upon request. 

(c) The method of calculation of passing percentage under subsection 

(b) shall be as follows: 

(1) Advertisement must state the period for which passing 

percentages are reported. 

(2) Percentages must be based on first-time candidates taking the 

state licensing examinations for the period reported. 





876 IAC 2-5-6 Real estate schools; prohibitions 



Sec. 6. Real estate schools are prohibited from the following: 

(1) Giving materially inaccurate or misleading information in an 

application for course approval or annual report. 

(2) Deliberately falsifying or misrepresenting any information 

supplied to the commission or public. 

(3) Possessing, claiming to possess, revealing, or distributing any 

questions used in the commission's broker or salesperson 

examinations. 

(4) Having substantially failed to comply with the provisions of any 

contract or agreement entered into with a student. 

(5) Failing to allow the commission or its designee to inspect the 

school or its records or failing to make available such information as 

required by IC 25-34.1-5 and this article. 

(6) Having been convicted, or one (1) of its owners having been 

convicted, of a crime which has a direct bearing on the school's 

ability to conduct a real estate course including, but not necessarily 

limited to, violation of real estate laws and abuse of fiduciary 

responsibilities. 

(7) Violating IC 25-34.1 or this title. 

(8) Failing to notify the commission within thirty (30) days of the 

termination of its relationship with an instructor for cause. 

(9) Paying or receiving a rebate or referral fee to any broker to recruit 

students. 





p.m.: 20070808-IR-876070067RFA) 

876 IAC 2-5-7 Real estate schools; performance standard 



Sec. 7. (a) For any approved course, a school shall not have a 

percentage of its students in any year who pass the broker or 

salesperson course in their first attempt at a rate of less than fifty percent 

(50%) of the performance record of all first-time examinees. 

(b) The method of calculation of a passing percentage under 

subsection (a), shall be the percentage of first-time candidates taking the 

state licensing examination for the year reported. 

(c) If a school is in violation of subsection (a), it shall be given notice of 

the discovered violation and shall have six (6) months to come into 

compliance with subsection (a), before any action is taken under IC 25- 

34.1-5-9. 





62

Rule 6. Fundamentals of Real Estate Salesperson Course; General 

876 IAC 2-6-1 Course description 



Sec. 1. The salesperson course consists of instruction in basic real 

estate principles and practices, including real estate law, financing, 

brokerage, closing, valuation, management, taxation, and mathematics. 

Also included is instruction in construction, land use, property insurance, 

and the Indiana real estate license statute, and the rules of the Indiana 

real estate commission [this title]. 




876 IAC 2-6-2 Course objective 



Sec. 2. The primary objectives of the salesperson course are: 

(1) to provide students with the basic knowledge and skills 

necessary to act as a real estate salesperson; and 

(2) to prepare students for the real estate salesperson license 

examination. 




876 IAC 2-6-3 Syllabus 



Sec. 3. The course syllabus in 876 IAC 2-7 through 876 IAC 2-8 is 

established by the Indiana real estate commission to establish minimum 

content level for the salesperson course. 




876 IAC 2-6-4 Textbooks and other instructional materials 



Sec. 4. The required instructional materials and approved textbooks for 

the salesperson course are found in 876 IAC 2-9-1. 


p.m.: 13 IR 636; errata, 13 IR 1862; filed Jun 30, 1999, 2:41 p.m.: 22 IR 

3418; readopted filed Jun 29, 2001, 9:56 a.m.: 24 IR 3824; readopted 


876 IAC 2-6-5 Instructors 



Sec. 5. Although instructors who meet the requirements of 876 IAC 2-3 

may teach all subject areas included in this course, it should be noted 

that very few instructors actually possess the desired level of 

competency in each and every subject area. For this reason, schools are 

encouraged to utilize guest lecturers with specialized knowledge and 

skills in specific areas in addition to the primary instructor. 




876 IAC 2-6-6 Order of subject area presentation 



63 

Sec. 6. The order in which subject areas are presented in 876 IAC 2-1 

and 876 IAC 2-8 is the recommended order. Instructors may make 

reasonable adjustments in the order of presentation, but should retain a 

logical order of presentation in any event. 




876 IAC 2-6-7 Major subject area emphasis 



Sec. 7. Subject area emphasis by major subject area are the topics 

listed in 876 IAC 2-7-1 in the form of a specific number of classroom 

hours to be devoted to each major subject area. Instructors may make 

reasonable adjustments in subject area emphasis to suit their class 

schedules and individual preference; however, instructors are cautioned 

against undue overemphasis or underemphasis of topics. 




876 IAC 2-6-8 Competency and instructional levels 



Sec. 8. (a) Each major topic established in 876 IAC 2-8-1 through 876 

IAC 2-8-15 has been assigned a “competency and instructional level” in 

order to assist the instructor in determining the appropriate relative 

emphasis and instructional methods for such topics. In some instances 

where subtopic should be afforded significantly greater or lesser 

emphasis than that indicated by the level assigned to the major topic 

under which it is listed, such subtopic has been assigned a different level 

which applies to that subtopic only. 

(b) Competency and instructional levels have been assigned based on 

the relative importance of the topic and the degree of knowledge or skill 

needed by real estate salespersons with regard to the topic. Instructors 

are REQUIRED to comply with the assigned competency and 

instructional levels (and special notes to instructors) when teaching this 

course. 

(c) As used in this section, “competency” refers to the knowledge/ability 

level expected of students with regard to a particular topic, while the term 

“instruction” refers to the depth of instruction and the instructional 

methods which should be utilized. 

(d) Shown below are the four (4) competency and instructional levels 

used in 876 IAC 2-8 and the meaning of each. Level 1 is the lowest level 

and Level 4 is the highest. 

Level 1 

Competency: Student should have a general familiarity with topic. 

Instruction: 

Instructor should discuss topic generally; do not 

cover in depth. 

Level 2 

Competency: Student should have a good basic knowledge and 

understanding of topic. 

Instruction: 

Instructor should cover topic in some moderate 

depth, using examples (as appropriate) to reinforce 

ideas, principles, and practices. Coverage should be 

sufficient to assure that students have a firm grasp of 

the basic facts, principles, and practices associated 

with the topic. 

Level 3 

Competency: Student should have a good working knowledge of 

topic. Student should not only have a good 

understanding of the basic facts, principles, and 

practices associated with the topic, but also should 

be able to apply his/her knowledge to common fact

situations which will likely be encountered in real 

estate practice. 

Instruction: Instructor should cover topic in depth, using 

examples (as appropriate) to reinforce ideas, 

principles, and practices and requiring students to 

complete practical work assignments (as appropriate) 

to demonstrate both their understanding of the topic 

and their ability to apply their knowledge to common 

fact situations which will be encountered in real 

estate practice. 

Level 4 

Competency: Student should have a thorough and complete 

working knowledge of topic. Student should not only 

have a thorough, in-depth understanding of the facts, 

principles, and practices associated with the topic, 

but should also be able to apply his/her knowledge to 

a wide variety of fact situations which may be 

Instruction: 

encountered in real estate practice. 

Instructor should cover in depth, using examples (as 

appropriate) to reinforce ideas, principles, and 

practices and requiring students to complete 

extensive practical work assignments (as 

appropriate) to demonstrate both their understanding 

of the topic and their ability to apply their knowledge 

to a wide variety of fact situations which may be 





876 IAC 2-6-9 Mathematics instruction 



Sec. 9. 876 IAC 2-7 through 876 IAC 2-8 establish instruction on 

mathematical functions relating to real estate practice to be provided 

under the various subject areas involving such mathematical functions 

rather than as a separate subject area. Consideration was given to the 

amount of mathematics involved in each subject area when establishing 

the number of classroom hours for subject areas. This integrated 

approach is required because it helps assure that students understand 

how various mathematical functions relate to the various areas of real 

estate practice. Instruction in basic mathematics concepts such as 

decimals, fractions, percentages, multiplication, division, etc., is not 

included in 876 IAC 2-7 through 876 IAC 2-8. If such basic mathematics 

instruction is to be included in any real estate course, additional time 

above the minimum required for such course must be provided for such 

instruction. 




876 IAC 2-6-10 Syllabus copies 



Sec. 10. (a) Copies of this rule and 876 IAC 2-7 through 876 IAC 2-9 

will be provided free of charge by the Indiana real estate commission to 

approved schools and instructors. School officials and instructors are 

asked however, to limit requests for copies to that number which is 

actually needed for use by schools and instructors. Schools and 

instructors may be asked to justify any request for an unusually large 

number of copies. 

(b) The Indiana real estate commission will not provide copies of this 

rule and 876 IAC 2-7 through 876 IAC 2-9 for student use, although 

schools and instructors may reproduce all or part of this rule and 876 IAC 

64 

2-7 through 876 IAC 2-9 for student use at their own expense, and may 

charge students for the cost of reproduction. 




876070067RFA) 

Rule 7. Real Estate Salesperson Course; Major Subject Area 

Emphasis 

876 IAC 2-7-1 Major subject area; number of course hours 



Sec. 1. The fundamentals of the real estate salesperson course are as 

follows: 

FUNDAMENTALS OF REAL ESTATE SALESPERSON 

PRELICENSING COURSE MAJOR SUBJECT AREA EMPHASIS 

Number of 

Subject Area 

Course Hours 

Basic real estate concepts and course overview 4.0 

Property ownership and interests 3.0 

Transfer of title to real property 2.0 

Land use controls 1.0 

Real estate brokerage and law of agency 3.0 

Fair housing 1.0 

Real estate contracts 6.0 

Landlord and tenant (including leases) 1.0 

Real estate financing 10.0 

Closing real estate transactions 5.0 

Basic house construction 1.0 

Property valuation 7.0 

Real estate management 1.0 

Property insurance 1.0 

Federal income taxation of home ownership 1.0 

License law, commission rules, and trust account 

guidelines 7.0 

Total course hours 54.0 




Rule 8. Real Estate Salesperson Course; Outline 

876 IAC 2-8-1 Basic real estate concepts 



Sec. 1. (a) The competency and instructional level for subdivisions (1) 

through (4) is Level 1. The following are general characteristics of real 

estate: 

(1) Terminology. 

(2) Classes of property. (Cover in greater depth under section 2 of 

this rule.) 

(3) The following characteristics of land: 

(A) Immobility. 

(B) Permanence. 

(C) Uniqueness. 

(4) The following characteristics of land: 

(A) Scarcity. 

(B) Permanence of investment. 

(C) Location. 

(b) The competency and instructional level for subdivisions (1) through 

(4) is Level 1. The following are general concepts of land use and 

investment: 

(1) The highest and best use concept.

(2) Public and private land use restrictions. (Cover in greater depth 

under section 4 of this rule.) 

(3) Real estate investment objectives. 

(4) The real estate market. 




876 IAC 2-8-2 Property ownership and interest 




through (4) is Level 2. The competency and instructional level for 

subdivision (5) is Level 3. The following are concepts of property: 

(1) The “bundle of rights” concept. 

(2) Real property. 

(3) Personal property. 

(4) Lands, minerals, fruits of the soil. 

(5) The following fixtures: 

(A) Definition. 

(B) Criteria for determining if item is a fixture. (Students should be 

able to apply these criteria to common fact situations.) 

(C) Trade and agricultural fixtures. 

(D) Effect of Uniform Commercial Code concerning security 

interests in fixtures. 

(b) The competency and instructional level for subdivisions (1), 

(2)(A)(ii)(AA), and (2)(B) is Level 2. The competency and instructional 

level for subdivisions (2)(A)(i)(BB) and (2)(A)(ii)(BB) is Level 1. The 

following are concepts of estates in real property: 

(1) Definition of “estate”. 

(2) The following types of estates (characteristics of each): 

(A) Freehold estates as follows: 

(i) The following estates of inheritance: 

(AA) Fee simple. 

(BB) Determinable, base, or qualified fee. 

(CC) Estate for life of another. 

(ii) Estates not of inheritance (life estates). 

(AA) Estate for tenant's own life (conventional life estate). 

(BB) Marital life estates. 

(B) Nonfreehold (leasehold) estates. (Mention only; cover in 

greater depth under section 8 of this rule.) 

(c) The competency and instructional level for subdivisions (1) and 

(2)(B) through (2)(D) is Level 2. The competency and instructional level 

for subdivision (2)(A) is Level 1. The following are concepts of ownership 

of real property: 

(1) Severalty (sole) ownership. 

(2) The following concurrent (joint) ownership (characteristics of 

each method): 

(A) Joint tenancy. 

(B) Tenancy in common. 

(C) Tenancy by entirety. 

(D) The following hybrid forms of ownership: 

(i) Condominium ownership (characteristics, creation, and 

consumer protection). 

(ii) Cooperative ownership. 

(iii) Townhouse ownership. 

(iv) Time share ownership. 

(v) Planned unit development (PUD). 

(d) The competency and instructional level for subdivisions (1)(A), 

(1)(C), and (2) through (5) is Level 2. The competency and instructional 

level for subdivision (1)(B) is Level 1. The following are concepts of 

encumbrances to real property: 

(1) The following liens: 

(A) The following specific liens: 

65 

(i) Mortgages (deeds of trust). (Mention only; cover in depth 

under section 9 of this rule.) 

(ii) Real estate tax and assessment liens. 

(iii) Mechanics' liens (statutory liens). 

(B) The following general liens: 

(i) Judgment liens. 

(ii) Personal property tax liens. 

(iii) State tax liens. 

(iv) Federal tax liens. 

(C) Lien priority. 

(2) Restrictive covenants. (Mention only; cover in depth under 

section 4 of this rule.) 

(3) Lis pendens (notice of pending litigation). 

(4) The following easements and licenses: 

(A) The following classifications of easements: 

(i) Appurtenant easements. 

(ii) Easements in gross. 

(B) The following creations of easements (types by method of 

creation): 

(i) Express. 

(ii) Implied. 

(iii) Arising by operation of law. 

(C) Termination of easements. 

(D) Party wall (cross easements). 

(5) Encroachments. 

(e) The competency and instructional level for subdivisions (1) through 

(3) is Level 2. The following are concepts of appurtenances: 

(1) Easements and land restrictive covenants. (Mention only.) 

(2) Riparian rights. 

(3) Air and subsurface rights. 

(f) The competency and instructional level for subdivisions (1) through 

(2) is Level 3. The following are concepts of property taxation: 

(1) The following topics concerning property tax: 

(A) Tax rate and calculations. 

(B) Property subject to taxation. 

(C) Listing property for taxation. 

(D) Appraisal and assessment. 

(E) Timetable for listing and tax collection. 

(F) Property tax liens. 

(G) Special priority of tax liens. 

(H) Exemptions. 

(I) Records. 

(J) Payment. 

(2) The following special assessments: 

(A) By counties. 

(B) By cities and towns. 

(C) Special assessment liens. 


p.m.: 13 IR 638; errata, 13 IR 1188; readopted filed Jun 29, 2001, 9:56 

a.m.: 24 IR 3824; readopted filed Jul 19, 2007, 12:57 p.m.: 20070808-IR- 

876070067RFA) 

876 IAC 2-8-3 Transfer of title to real property 




through (4) is Level 1. The following are concepts of methods of 

transferring title: 

(1) By descent (interstate succession). 

(2) By will. 

(3) By voluntary alienation (deed). (Cover in greater depth under 

subsection (b).) 

(4) By involuntary alienation as follows: 

(A) Lien foreclosure sale.

(B) Adverse possession. 

(C) Escheat. 

(D) Eminent domain (condemnation). 


(2) is Level 2. The competency and instructional level for subdivision 

(2)(B) is Level 1. The following are concepts of deeds: 

(1) Essential elements of a valid deed. 

(2) The following types of deeds (purpose and characteristics of 

each): 

(A) The following types most commonly used in Indiana (Use 

sample deed form for illustration.): 

(i) General warranty deed. 

(ii) Special warranty deed. 

(iii) Quit claim deed. 

(B) Special purpose deeds. 

(c) The competency and instructional level for subdivisions (1) through 

(3) and subdivision (5) is Level 1. The competency and instructional level 

for subdivision (4) is Level 2. The following are concepts of title 

assurance: 

(1) Title examination procedures. (If possible, take students on tour 

of courthouse to view records.) 

(2) Title insurance including the following: 

(A) Purpose. 

(B) The following types of policies: 

(i) Owner's policies. 

(ii) Mortgagee's (lender's) policy. 

(C) Policy coverage. 

(D) Cost and procurement. 

(3) Abstract of title. 

(4) Title recordation including the following: 

(A) Purpose. 

(B) Documents required to be recorded. 

(C) Recording contracts. 

(D) Requirements for recordation. 

(E) Procedures. 

(5) Covenants of title in deeds. 

(d) The competency and instructional level for subdivisions (1) through 

(2) is Level 2. The following are concepts of property description: 

(1) Adequacy of description. 

(2) The following methods of describing real estate: 

(A) Metes and bounds. 

(B) Government (rectangular) survey system. 

(C) Reference to recorded plan (lot and block). 

(D) Informal reference, e.g., street and address. 

(E) Reference to publicly recorded documents. 




876 IAC 2-8-4 Land use controls 



Sec. 4. (a) The competency and instructional level for the historical 

development of land use controls is Level 1. 

(b) The competency and instructional level for land use control 

importance to real estate agents is Level 1. 

(c) The competency and instructional level for subdivision (1) is Level 

2. The competency and instructional level for subdivisions (2) through (7) 

is Level 1. The following are concepts of land use controls: 

(1) The following zoning classifications (Use actual local zoning 

ordinances, zoning maps, classification charts and tables of 

permitted uses; students should know how to determine the zoning 

classification and permitted uses for property subject to a zoning 

ordinance.): 

66 

(A) Basis for governmental zoning authority. 

(B) Purpose of zoning regulations. 

(C) Zoning districts. 

(D) Zoning ordinances. 

(E) The following zoning concepts and terms: 

(i) Nonconforming use. 

(ii) Illegal use. 

(iii) Zoning amendments. 

(iv) Variance. 

(v) Special use permit (or special exception). 

(vi) Overlay districts. 

(vii) Historic preservation zoning. 

(viii) Aesthetic zoning. 

(ix) Spot zoning. 

(2) Urban and regional planning. 

(3) Subdivision regulations. 

(4) Building codes. 

(5) Highway access controls. 

(6) Federal regulation of interstate sales of subdivided land. 

(7) Environmental protection legislation (and regulation). 


(3) is Level 2. (Restrictive covenants) (Use typical set of subdivision 

covenants for illustration.) The following are concepts of privately 

imposed land use controls: 

(1) Purpose. 

(2) Typical matters addressed. 

(3) Enforcement. 

(e) The competency and instructional level for “government ownership” 

is Level 1. 




876 IAC 2-8-5 Real estate brokerage; law of agency 



Sec. 5. (a) The competency and instructional level for general agency 

concepts and definitions for real estate brokerage and law of agency is 

Level 2. 


(3) is Level 2. The following are concepts of the classification of agency 

relationships: 

(1) Universal. 

(2) General. 

(3) Special. 


(2) is Level 3. The following are concepts of employment and authority of 

the real estate agent: 

(1) Brokerage contracts (as source of authority). (Cover listing 

contracts and property management contracts in detail where 

subsequently addressed.) 

(2) Extent (scope) of agent's authority. 


(4) is Level 3. The following are general concepts of agency and 

subagency situations: 

(1) Listing with independent broker, e.g., a single broker working 

alone. 

(2) Listing with brokerage firm. 

(3) Multiple listing service (or cooperating broker). 

(4) Buyer-broker relationship. 


(3) is Level 3. The following are duties and liabilities of agents: 

(1) Agent's duties to principal including the following:

(A) Loyalty and obedience. (Note potential problems involved with 

“self-dealing” and “conflict of interest” situations.) 

(B) Skill, care, and diligence. 

(C) Disclosure (and nondisclosure) of information. 

(D) Accounting. 

(E) Competency in the particular activity. 

(F) Fiduciary responsibilities. 

(G) “Prudent Man” rule. 

(2) Agent's duties to third persons (buyers and tenants) including the 

following: 

(A) Difference between “client” and “customer” in real estate 

practice. 

(B) General duty of “honesty and fairness”. 

(C) The following prohibited conduct: 

(i) Willful misrepresentation. 

(ii) Negligent misrepresentation. 

(iii) Willful omission. 

(iv) Negligent omission. 

(v) Misrepresentation. 

(vi) Fraud. 

(3) The following liabilities and consequences of agent's breach of 

duties: 

(A) Disciplinary action by real estate commission against agent. 

(B) Civil liability of agent. 

(C) Criminal liability of agent. 

(D) Civil liability of principal (for agent's misconduct). 


(3) is Level 3. The following are duties and liabilities of principals: 

(1) The following principal's duties to agent: 

(A) Good faith. 

(B) Compensation. 

(2) Principal's duties to third persons. (Note doctrine of caveat 

emptor and limitations to such doctrine established by consumer 

protection laws and judicial decisions.) 

(3) The following are liabilities and consequences of principal's 

breach of duties: 

(A) Criminal liability in some cases. 

(B) Civil liability. 




876 IAC 2-8-6 Fair housing 




through (3) is Level 2. The following are concepts of the Fair Housing Act 

of 1968 (Title VIII of 1968 Civil Rights Act): 

(1) Discrimination in the sale or rental of housing based on race, 

color, religion, sex, or national origin as follows: 

(A) Blockbusting (or “panic peddling”). 

(B) Steering. 

(C) Discriminatory advertising. 

(D) Refusing to sell, rent, or negotiate based on race, etc. 

(E) Discrimination in terms, conditions, or privileges. 

(F) Discrimination in the financing of housing (“redlining” and 

related practices). 

(G) Discrimination in provision of brokerage services. 

(2) Exemptions. 

(3) The following enforcement and penalties: 

(A) By administrative procedure through the Office of Equal 

Opportunity (OEO) of the Department of Housing and Urban 

Development (HUD). 

(B) By private lawsuit in federal court. 

67 

(C) Procedures for initiating a complaint. 




876 IAC 2-8-7 Real estate contracts 




through (6) and (10) is Level 2. The competency and instructional level 

for subdivisions (7) through (9) is Level 1. The following are concepts of 

basic contract law: 

(1) The following basic contract terms and classifications: 

(A) Definition of a contract. 

(B) Express/implied. 

(C) Bilateral/unilateral. 

(D) Executed/executory. 

(E) Valid (enforceable)/void (unenforceable) /voidable. 

(2) The following essential elements of a contract: 

(A) The following requirements for mutual assent (offer and 

acceptance): 

(i) The offer. 

(ii) Acceptance. 

(iii) Counteroffers. 

(iv) Termination of offers. 

(B) Consideration. 

(C) Capacity of the parties. 

(D) Lawful objective. 

(3) The following requirements for reality of consent: 

(A) Mistake. 

(B) Fraud and misrepresentation. 

(C) Duress. 

(D) Undue influence. 

(4) Contract law and auction sales as follows: 

(A) Basic procedures. 

(B) “With reserve” versus “without reserve”. 

(5) Statute of frauds (applied to real estate contracts) as follows: 

(A) Contracts to sell or convey any interest in real property. 

(B) Leases of real property exceeding three (3) years in duration. 

(6) The following discharge of contracts: 

(A) Agreement of the parties. 

(B) Full performance. 

(C) Impossibility of performance. 

(D) Operation of law. 

(7) Assignment of contracts. 

(8) General rules for interpretation of contracts. 

(9) The following contract remedies: 

(A) Money damages. 

(B) Specific performance. 

(C) Recision. 

(10) Other considerations as follows: 

(A) The following authority to sign: 

(i) Competency. 

(ii) Age. 

(iii) Power of attorney. 

(iv) Need for signature of all parties. 

(B) Notary public. 

(C) Changing a contract. 

(D) “Time is of the essence”. 

(E) Abbreviations in contracts. 

(F) Blanks in contracts. 

(G) Who may write contracts. 


(6) and (8) is Level 3. The competency and instructional level for

subdivision (7) is Level 2. The following are concepts of listing contracts 

and practices: 

(1) Definition and purpose of listing contracts. 

(2) Broker's entitlement to a commission as follows: 

(A) The following requisites for establishing claim to a commission: 

(i) Broker must be licensed. 

(ii) Broker must have a valid employment (listing) contract. 

(B) Ready, willing, and able buyer rule. 

(C) Procuring cause of sale rule. 

(3) The following basic types of listing contracts (characteristics of 

each): 

(A) Open. 

(B) Exclusive agency. 

(C) Exclusive right to sell. 

(D) Protection agreement. 

(4) Multiple listing service arrangements. (Use sample pages from 

local MLS book for illustration of how the MLS lists properties.) 

(5) The following listing contract provisions (Introduce listing 

agreement used on state examination.): 

(A) Property description. 

(B) Listing price and terms of sale. 

(C) Broker's duties. 

(D) Brokerage fee (including computations) as follows: 

(i) Percentage of sale price (commission). 

(ii) Flat fee. 

(iii) Net listing. 

(iv) Splitting the fee. 

(E) Duration of listing. 

(F) “Override” (or “extender”) clause. 

(6) Property data sheet as follows: 

(A) Purpose and use. 

(B) Listing agent's responsibilities. 

(C) Determining square footage. 

(D) Seller's disclosure of defects. 

(7) Termination of listing contracts. 

(8) Practice preparation of listing contracts and property data sheets. 

(Students should be afforded supervised practice in completing 

listing contracts and property data sheets. Note the consequences of 

inadequate or improper preparation of listing contracts and property 

data sheets.) 


3. The competency and instructional level for subdivision (2) is Level 1. 

The competency and instructional level for subdivision (3) is Level 2. The 

following are concepts of sales contracts and practices: 

(1) The offer to purchase. (Student should be afforded supervised 

practice in completing an offer to purchase as used on the state 

examination, including special provisions and modifications by 

counteroffer, for a variety of fact situations.) 

(A) The following major contract provisions: 

(i) Description of the property (including personal property to be 

included in the sale). 

(ii) Sale price and payment terms. 

(iii) Earnest money, and possible forfeiture thereof as follows: 

(AA) Forms of earnest money and disclosure thereof. 

(BB) Post dated checks. 

(CC) Importance of explaining to buyer and seller the handling 

of an earnest money deposit. 

(iv) Type of conveyance and quality of title. 

(v) Closing and possession dates. 

(vi) Closing expenses and prorations. 

(vii) Condition of utilities. 

(viii) Condition of property in general. 

(ix) Risk of loss. 

(x) Wood destroying insects. 

68 

(xi) Contingency provisions as follows: 

(AA) Buyer financing. 

(BB) Sale of buyer's present home. 

(xii) Signature and dates. 

(B) Offer, acceptance, and delivery (review of legal requirements 

as applied to this type of contract) as follows: 

(i) Handling by telephone. 

(ii) Handling by mail. 

(iii) Withdrawal of offer. 

(C) Submitting the following offers to seller: 

(i) Other competitive offer. 

(ii) Conditional “back up” offer. 

(D) Handling contract modification. 

(E) Furnishing copies of offers and contracts to buyer and seller. 

(F) Specific performance. 

(G) Disclosure by agent that he represents the buyer, the seller, or 

both. 

(2) Installment land contracts (Use sample for illustration.) as follows: 

(A) Definition and purpose. 

(B) Typical provisions. 

(C) Advantages and disadvantages (from viewpoint of both buyer 

and seller). 

(D) Preparation. 

(E) Default and foreclosure. 

(F) Voluntary information. 

(G) Recording. 

(3) The following options to purchase real estate (Use sample form 

for illustration.): 


(B) Rights of parties. 

(C) Requirements of options. 

(D) Right of first refusal. (Distinguish from “option”.) 




876 IAC 2-8-8 Landlord and tenant 




through (2) is Level 2. The following are concepts of landlord and tenant 

relationship: 

(1) Definitions: landlord (lessor), tenant (lessee), lease. 

(2) Privity of estate and privity of contract concepts. 


(8) is Level 2. The following are concepts of the Residential Rental 

Agreements Act: 

(1) Obligations of landlord and tenant are mutually dependent. 

(2) Landlord's statutory duties. 

(3) Relationship of the law of negligence. 

(4) Tenant's statutory duties. 

(5) Retaliatory eviction doctrine. 

(6) Tenant prohibited from unilaterally withholding rent. 

(7) Residential eviction remedies. 

(8) Constitutional rights of tenants in public housing. 


(4) is Level 2. The following are concepts of nonfreehold estates 

(characteristics of each): 

(1) Estates for years. 

(2) Estates from period to period (periodic tenancies). 

(3) Estates at will. 

(4) Estates at sufferance. 


(2) and (4) through (6) is Level 2. The competency and instructional level

for subdivision (3) is Level 3. The following are general concepts of 

leases: 

(1) The following types of leases (uses and characteristics of each): 

(A) Fixed rental (flat); gross. 

(B) Percentage. 

(C) Net. 

(D) Graduated. 

(E) Index. 

(F) Reappraisal. 

(G) Ground. 

(H) Mineral. 

(2) Lease forms and preparation. 

(3) The following lease provisions: 

(A) Essential provisions (basically the same as for any contract). 

(B) Other common provisions (relating to matters listed as follows 

and similar matters): 

(i) Tenant's use of premises. 

(ii) Fixtures. 

(iii) Repairs (nonresidential property). 

(iv) Assignments and subleases. 

(v) Renewal. 

(vi) Option to purchase/right of first refusal. 

(vii) Landlord's right to enter during lease term. 

(viii) Termination. 

(C) Landlord's implied covenant of quiet enjoyment. 

(4) Application of leases. 

(5) Recordation of leases. 

(6) Effect of lease upon sale of property. 




876 IAC 2-8-9 Real estate financing 



Sec. 9. (a) The competency and instructional level for subdivisions (1), 

(2)(A) through (2)(B), (2)(E), and (3) through (5) is Level 2. The 

competency and instructional level for subdivisions (2)(C) through (2)(D) 

is Level 3. The following are concepts of mortgages: 

(1) The following are basic mortgage terms and concepts: 

(A) Definitions: mortgage, mortgagor/mortgagee; trustee, 

beneficiary, grantor. 

(B) Right (equity) of redemption. 

(C) Foreclosure and statutory redemption period. 

(2) The mortgage note provisions as follows: 

(A) Essential elements of a valid note. 

(B) Special note provisions as follows: 

(i) Acceleration clause. 

(ii) Prepayment penalty clause. 

(iii) Due-on-sale clause. 

(C) Principal and interest (debt service) provisions as follows: 

(i) Definitions. 

(ii) Basic computations of simple interest. 

(iii) Determining monthly principal and interest payment. 

(iv) Usury laws. 

(D) Payment (amortization) plans as follows: 

(i) Fixed rate. 

(ii) Adjustable (or variable) interest rate plans. 

(iii) Graduated payment plans. 

(iv) Buydown loan. 

(v) Term loan. 

(vi) Balloon payment plans. 

(vii) Shared appreciation plans. 

(E) Negotiability of note. 

69 

(3) The mortgage instrument provisions as follows (Use sample form 


(A) Essential elements. 

(B) Parties to mortgages. 

(4) The following rights of mortgage lenders: 

(A) Right to foreclosure provisions as follows: 

(i) Foreclosure methods as follows: 

(AA) Judicial. 

(BB) Power of sale (nonjudicial). 

(CC) Strict. 

(ii) Deficiency judgment. 

(B) Right to transfer (assign) the mortgage. 

(5) The following rights of borrowers: 

(A) Right to possession. 

(B) Right (equity) of redemption. 


(3) is Level 3. The following are concepts of sales of mortgaged property: 

(1) Cash sale. 

(2) Assumption of existing mortgage. (Release of liability and 

restoration of benefits on VA mortgage.) 

(3) Purchase subject to existing mortgage. 

(c) The competency and instructional level for subdivisions (1)(A) 

through (1)(B) is Level 3. The competency and instructional level for 

subdivisions (1)(C) through (1)(E) is Level 2. The competency and 

instructional level for subdivision (2) is Level 1. The following are 

concepts of types of mortgages: 

(1) The following major types (by lending source): 

(A) Conventional mortgage loans including the following: 

(i) Definition and availability. 

(ii) Insured versus noninsured. 

(iii) General characteristics and interest rates. 

(B) FHA mortgage loans including the following: 

(i) Historical and present role of the FHA. 

(ii) Definition and availability. 

(iii) General characteristics (including maximum loan amount). 

(iv) FHA loan programs including the following: 

(AA) Section 203(b), home mortgages. 

(BB) Section 234(c), condominium mortgages. 

(CC) Sections 245(a) through (b), graduated payment 

mortgages. 

(v) Interest rates. 

(vi) Advantages/disadvantages. 

(C) VA mortgage loans including the following: 

(i) Historical and current role of the VA. 

(ii) Eligibility requirements. 

(iii) Amount of guarantee or entitlement. 

(iv) Characteristics (including interest rates, discount points, and 

maximum loan amount). 

(v) Advantages/disadvantages. 

(D) FmHA mortgage loans including the following: 

(i) Historical and current role of FmHA. 

(ii) Eligibility requirements. 

(iii) Characteristics (including interest rates). 

(E) Purchase money mortgages (from buyer to seller). 

(2) Other types as follows (by loan characteristics) (Cover basic 

definitions, characteristics, and uses.): 

(A) Construction. 

(B) Open end. 

(C) Blanket. 

(D) Package. 

(E) Reverse authority. 

(F) Wraparound. 


(2) is Level 2. The following are concepts of mortgage priorities:

(1) Effect and importance of recordation. 

(2) Subordination of mortgages. 


(2) is Level 1. The following are concepts of major sources of real estate 

financing (the primary mortgage market) (Explain the role of each in 

providing real estate financing.): 

(1) The following direct sources (primary mortgage market): 

(A) Savings and loan associations. 

(B) Commercial banks. 

(C) Mutual savings bank. 

(D) Mortgage companies (mortgage bankers). 

(E) Mortgage brokers. 

(F) Individuals. 

(G) Miscellaneous (government agencies, credit unions, and 

employers). 

(H) Indiana housing authority. 

(2) Indirect sources. 


(4) is Level 1. The competency and instructional level for subdivision (5) 

is Level 3. The following are concepts of the secondary mortgage market 

(Explain how the secondary market functions and the role of its major 

participants.): 

(1) Federal National Mortgage Association (FNMA). 

(2) Government National Mortgage Association (GNMA). 

(3) Federal Home Loan Mortgage Corporation (FHLMC). 

(4) Private mortgage insurers. 

(5) Discount points and yield (including computations). 

(g) The competency and instructional level for subdivisions (1), (2)(A)(i) 

through (2)(A)(iv), and (2)(B) through (2)(D) is Level 2. The competency 

and instructional level for subdivisions (2)(A)(v) and (3) is Level 3. The 

following are concepts of residential lending practices and procedures: 

(1) Loan application procedures. (Use sample form for illustration.) 

(2) Loan underwriting practices as follows: 

(A) Borrower analysis (“qualifying a buyer/borrower”) including the 

following: 

(i) Credit characteristics. 

(ii) Adequacy of assets to close the transaction. 

(iii) Stability of income. 

(iv) Types of acceptable income. 

(v) Adequacy of income. (Student should be afforded practice in 

applying the expense/income ratios for conventional and FHA 

loans and the residual income standards for VA loans to 

hypothetical fact situations.) 

(B) Property analysis including the following: 

(i) Appraisal. 

(ii) Title opinion and title insurance. 

(C) Loan analysis including the following: 

(i) Yield (interest rate and discount points). 

(ii) Loan term. 

(iii) Loan-to-value ratio. 

(iv) Mortgage insurance. 

(D) Loan commitment and closing. 

(3) Prequalification of buyer by real estate agent. (Student should be 

afforded practice in prequalifying hypothetical prospective buyers.) 

(h) The competency and instructional level for subdivisions (1) through 

(2) is Level 1. The following are concepts of financing legislation 

(federal): 

(1) Truth-in-Lending Act and the Truth-in-Lending Simplification and 

Reform Act (TILSRA), as implemented by Regulation Z of the 

Federal Reserve Board including the following: 

(A) Basic purpose and applicability. 

(B) Disclosure of credit information. 

(C) Applicability to “arrangers of credit”. 

70 

(D) Disclosures of credit terms in advertising the sale of real 

estate. 

(2) The Equal Credit Opportunity Act (ECOA) implemented by 

Regulation B of the Federal Reserve Board including the following: 

(A) Basic purpose. 

(B) Basic provisions and requirements. 




876 IAC 2-8-10 Closing real estate sales transactions 




through (3) is Level 3. (The prevalent closing method used in Indiana. 

Remainder of section on “closing” is based on this method.) The 

following are concepts of the closing meeting: 

(1) Parties present or represented. 

(2) Location where meeting is conducted. 

(3) Parties responsible for closing. 


(10) is Level 3. The following are concepts of the preliminaries to closing: 

(1) Property survey (usually the buyer's responsibility). 

(2) Wood-destroying insect (termite) inspection (usually the seller's 

responsibility). 

(3) Title examination (including personal property lien search and 

mechanic's lien inquiry) (buyer's responsibility). 

(4) Abstract of title or title insurance (variations of responsibility). 

(5) Property inspection by buyer. 

(6) Clearing of title defects by seller. 

(7) Homeowner's or hazard insurance (buyer's responsibility). 

(8) Sewage disposal percolation test (usually the seller's 

responsibility if such a test is required). 

(9) Drafting and review of documents as follows: 

(A) Deed (and any other required documents relating to title) 

(seller's responsibility). 

(B) Note and mortgage (buyer's responsibility). 

(C) Bill of sale for personal property (if required) (seller's 


(D) Closing statement(s) (closing attorney/broker responsibility). 

(10) Post-closing title search (buyer's responsibility). 

(c) The competency and instructional level for concepts of items 

required at closing is Level 3. (Cover the items that must be provided at 

closing by the buyer and seller, either personally or through their 

attorney(s).) 


(2) is Level 3. The following are concepts of prorations at closing: 

(1) Methods of calculating prorations as follows: 

(A) Three hundred sixty (360) day year/thirty (30) day month 

method. 

(B) Three hundred sixty-five (365) day year method. 

(C) Actual days in the month method (combines clauses (A) 

through (B)). 

(D) Proration tables, programmed calculators, etc. 

(E) Choice of methods (usually determined by local custom and/or 

agreement of parties). 

(2) Items commonly prorated at closing as follows: 

(A) Real estate taxes for current year. 

(B) Homeowner's and/or hazard insurance premiums on assigned 

policy. 

(C) Rents on leased premises. 

(D) Interest on assumed mortgage. 


(5) is Level 3. The following are concepts of the closing statement:

(1) Purpose and preparation. 

(2) Broker's responsibility for closing statements. 

(3) Closing statement format (HUD-1 form and others). 

(4) Closing statement entries as follows (Students are expected to 

have a good working knowledge of how to record various closing 

statement entries that may be required in various situations in 

accordance with standard practices.): 

(A) Explanation of “debit/credit” system. 

(B) Double entry items as follows: 

(i) Prorations. 

(ii) Other nonprorated items. 

(C) Single entry items as follows: 

(i) Debits (charges) to seller. 

(ii) Credits to seller. 

(iii) Debits (charges) to buyer. 

(iv) Credits to buyer. 

(D) Balance due seller. 

(E) Balance owed buyer. 

(5) Handling funds at closing. 


(2) is Level 2. The following are concepts of the Real Estate Settlement 

Procedures Act of 1974 (RESPA): 

(1) Purpose and applicability. 

(2) Basic provisions as follows: 

(A) Requires lender to provide prospective borrowers with a copy 

of the HUD booklet “Settlement Costs and You” and “good faith 

estimates” of loan closing costs within three (3) business days of 

the date a loan application is filed. 

(B) Lender must use HUD-1 form for all “federally related” 

mortgage loans. 

(C) Upon demand by borrower, lender must permit borrower to 

examine the closing statement at least one (1) day prior to closing. 

(D) Prohibits lenders from paying “kickbacks” for referrals. 

(E) Regulates reserve (impound or escrow) accounts for payment 

of property taxes and insurance premiums. 

(F) Other financing considerations including the following: 

(i) Use of gift letters, pledged accounts, etc. 

(ii) Second mortgages. 




876070067RFA) 

876 IAC 2-8-11 Basic house construction 




through (2) is Level 1. (The purpose of this section is to provide the 

student with an elementary knowledge of basic house construction 

principles, techniques, and terminology which will assist the student in 

listing, showing, and selling such properties. Study is limited to wood 

frame (including brick veneer) type of construction because of its 

predominant use in Indiana. Extensive use of handout material is 

recommended due to limited class time.) The following are concepts of 

architectural types and styles: 

(1) The following basic types: 

(A) One (1) story (ranch). 

(B) One and one-half (1 1/2) story. 

(C) Two (2) story. 

(D) Split-level. 

(2) The following styles: 

(A) Traditional including the following: 

(i) Colonial. 

(ii) English tudor. 

71 

(iii) Victorian. 

(iv) French provincial. 

(B) Contemporary. 


(6) is Level 1. The following are concepts of foundations: 

(1) Basic components. 

(2) The following major types: 

(A) Concrete slabs including the following: 

(i) Monolithic. 

(ii) Floating. 

(B) Basement. 

(C) Crawl space. 

(3) Materials. 

(4) The following termite protection: 

(A) Chemical treatment of ground near foundation, walls, and 

piers. 

(B) Pressure-treated wood. 

(5) Ventilation. 

(6) Waterproofing. 


(3) is Level 1. The following are concepts of framing: 

(1) Floors, major components. 

(2) Walls including the following: 

(A) Basic components. 

(B) Basic types as follows: 

(i) Platform (most common type). 

(ii) Balloon. 

(iii) Post and beam. 

(3) Roof and ceiling framing: major roof types (designs) as follows: 

(A) Gable. 

(B) Hip. 

(C) Shed. 

(D) Flat. 

(E) Mansard. 

(F) Gambrel. 


(2) is Level 1. The following are concepts of exterior walls: 

(1) Sheathing. 

(2) Siding. 


(2) is Level 1. The following are concepts of windows and exterior doors: 

(1) Windows including the following: 

(A) The following types: 

(i) Sliding windows: double hung and horizontal sliding. 

(ii) Swinging windows: casement, jalousie, hopper, and awning. 

(iii) Fixed windows: picture, bay, and bow. 

(B) Major components. 

(2) The following door types: 

(A) Flush. 

(B) Panel. 

(C) Sliding. 

(D) Glass. 

(E) French. 


(3) is Level 1. The following are concepts of roofing: 

(1) Roof sheathing (decking). 

(2) Roofing material. 

(3) Eaves. 

(g) The competency and instructional level for subdivisions (1) through 

(4) is Level 1. The following are concepts of insulation: 

(1) Insulation materials. 

(2) Required insulation under Indiana and/or local residential building 

codes including the following: 

(A) Walls.

(B) Ceilings. 

(C) Floors. (Note electrical utilities recommend higher R values.) 

(3) Weatherstripping. 

(4) Moisture control (vapor barriers and attic ventilation). 

(h) The competency and instructional level for interior finish for walls, 

ceilings, and floors is Level 1. 

(i) The competency and instructional level for subdivisions (1) through 

(3) is Level 1. The following are concepts of heating and air conditioning 

systems: 

(1) Heating systems including the following: 

(A) Power sources: sun, gas, oil, electricity, coal, wood, etc. 

(B) Methods of heating: solar, warm air, hot water, steam, electric 

wire. 

(C) Types of heating systems as follows: 

(i) Gravity warm air. 

(ii) Forced warm air. 

(iii) Electric baseboard. 

(iv) Space heating systems. (Include wood stoves, kerosene 

heaters, electric heaters, fireplaces, etc.) 

(v) Solar heating systems as follows: 

(AA) Active. 

(BB) Passive. 

(CC) Components. 

(DD) Terminology. 

(2) Air conditioning systems including the following: 

(A) Central forced air (may be powered by electricity, gas, or oil). 

(B) Room air conditioners. 

(3) Combination systems, the heat pump. 

(j) The competency and instructional level for subdivisions (1) through 

(3) is Level 1. The following are concepts of government regulations: 

(1) Indiana uniform residential building code. 

(2) HUD minimum standards. 

(3) Contractor licensing. 


5:00 p.m.: 13 IR 647; errata filed Jun 2, 1998, 11:33 a.m.: 21 IR 3939; 


19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 2-8-12 Real property valuation; appraisal 




through (5) is Level 2. The following are basic appraisal concepts: 

(1) Definition of “appraisal” including the following: 

(A) Who can perform. 

(B) Liability. 

(2) Valuation versus evaluation including the following: 

(A) Valuation, market value estimates. 

(B) Evaluation as follows: 

(i) Economic feasibility study. 

(ii) Land utilization study. 

(3) Concepts of value including the following: 

(A) Value in use. 

(B) Value in exchange. 

(C) “Value” versus “cost” and “price”. 

(D) Definition of “market value”. 

(4) Forces and factors influencing property value including the 

following: 

(A) Social ideas and standards. 

(B) Economic forces. 

(C) Government activities. 

(D) Physical or environmental forces. 

(5) Basic economic principles of value including the following: 

(A) Supply and demand. 

72 

(B) Anticipation. 

(C) Substitution. 

(D) Conformity. 

(E) Contribution. 

(F) Competition. 

(G) Change. 

(H) Highest and best use. 

(b) The competency and instructional level for subdivision (1) is Level 


is Level 2. The competency and instructional level for subdivision (4) is 

Level 1. The following are concepts of approaches to value (appraisal 

methods): 

(1) Market data approach (also called direct sales comparison 

approach) (Students should be afforded practice in the use of this 

approach for estimating the value of residential properties.) including 

the following: 

(A) Definition and general use; terminology. 

(B) The following procedures: 

(i) Selection of recently sold comparable properties 

(“comparables”). 

(ii) Collection and analysis of sales and property data. 

(iii) Adjustment of the sale prices of comparables to reflect 

differences between them and the subject property. 

(iv) Correlation of the adjusted sale prices of comparables to 

derive estimate of value for subject property. 

(2) Cost approach including the following: 

(A) Definition and general use; terminology. 

(B) Estimate of land (lot) value (determined by using market data 

approach). 

(C) Estimating building costs as follows: 

(i) Reproduction cost versus replacement cost. 

(ii) Estimating reproduction or replacement cost using the 

square foot (comparative) method (simplest and most widely 

used method by appraisers). 

(iii) Depreciation as follows: 

(AA) Definition and basic concepts (such as “effective age” 

and “economic life”). 

(BB) The following depreciation methods: 

(aa) Age/life (straight-line) method. 

(bb) Market abstraction method. 

(cc) The following breakdown method: 

(1) Physical deterioration (curable and incurable). 

(2) Functional obsolescence (curable and incurable). 

(3) Economic obsolescence (curable and incurable). 

(D) Formulating the opinion of value (estimated 

reproduction/replacement cost less (-) estimated depreciation plus 

(+) estimated value of land equals (=) indication of value). 

(3) Income approach including the following: 

(A) Definition and general use. 

(B) Capitalization of income method as follows: 

(i) Estimate gross potential income based on “market rent”. 

(ii) Derive net operating income estimate by deducting projected 

vacancy and collection losses and operating expenses from 

gross income projection. 

(iii) Derive capitalization rate by either: 

(AA) market abstraction (same concept as used with market 

data approach and GRM method; most commonly used 

method); or 

(BB) other methods such as “band of investment method”, 

“build-up method”, or “mortgage equity method”. 

(These are beyond the scope of this course. Mention only, do 

not cover.) 

(iv) Derive estimate of property value (value equals net 

operating income divided by capitalization rate).

(C) Gross rent multiplier (GRM) method as follows: 

(i) Obtain sale price and gross income (rent) data on recently 

sold similar (comparable) properties. (Also record property and 

other sales data for comparative purposes.) 

(ii) Derive GRM for each comparable (sales price divided by 

gross income equals GRM). 

(iii) Correlate data to determine appropriate GRM. 

(iv) Derive estimate of subject property's value (GRM multiplied 

by gross income of subject equals indicated value of subject). 

(4) The following reconciliation of the three (3) approaches to value: 

(A) Assign appropriate “weight” to value indicated by each 

approach according to the reliability of each approach for the 

particular subject property. 

(B) Derive final conclusion (estimate) of value. 




876070067RFA) 

876 IAC 2-8-13 Real estate management 




through (2) is Level 2. The following are concepts of real estate 

management: 

(1) Purpose of real property management. 

(2) Types of properties requiring management as follows: 

(A) Residential. 

(B) Commercial. 

(C) Industrial. 


(3) is Level 2. The following are concepts of the owner/property manager 

relationship: 

(1) Authority of property manager (agent) including the following: 

(A) Established by property management contract. 

(B) Property manager is normally a special agent. 

(2) Duties of property manager (in general, a property manager owes 

the same duties to his principal and to third persons as those 

covered under “real estate brokerage and the law of agency”). 

(3) Property management fee (including calculations). 


(8) is Level 2. The following are concepts of the principal functions of 

property managers: 

(1) Establishing a rental schedule. 

(2) Preparing a proposed operating budget. 

(3) Marketing (advertising) and renting the property. 

(4) Collecting and accounting for rents and security deposits 

including the following: 

(A) Establishing policies. 

(B) Statutory requirements. 

(5) Instituting legal actions (to recover rents or to evict tenants). 

(6) Maintaining and protecting the property (including supervision of 

maintenance personnel, paying property insurance, establishing and 

enforcing rules for tenants, and providing tenant services). 

(7) Performing landlord's duties under leases. 

(8) Maintaining records and reporting to owner (including periodic 

income and expense reports). 




876070067RFA) 

876 IAC 2-8-14 Property insurance 


73 



through (4) is Level 1. The following are basic property insurance 

concepts and terminology: 

(1) Insurer and insured. 

(2) Property (fire and other hazard) insurance. 

(3) Liability insurance. 

(4) Package insurance policy. 


(2) is Level 1. The following are concepts of the standardized 

homeowner's insurance policies: 

(1) Standardized forms including the following: 

(A) HO-1 (basic form). 

(B) HO-2 (broad form). 

(C) HO-3 (all risk form ─ the most widely used form). 

(D) HO-4 (tenant's policy ─ for personal property). 

(E) HO-5 (comprehensive all risk form ─ provides broad coverage 

of both real and personal property). 

(F) HO-6 (condominium owner's policy). 

(2) Contents of HO-2 (or HO-3) form (Use standard policy form for 

illustration.) including the following: 

(A) Agreement to insure (and related provisions). 

(B) Declaration page including the following: 

(i) Period of coverage. 

(ii) Property description and “rating”. 

(iii) Coverage, including liability limits, deductibles (if any), and 

premiums. 

(iv) Endorsements (if any). 

(v) Name of mortgagee, signature of authorized agent, and other 

similar matters. 

(C) Standardized policy provisions (all details of the policy, 

including perils insured against, property covered, conditions, 

exclusions, and endorsements). 

(D) Definitions as follows: 

(i) Conditions. 

(ii) Exclusions. 

(iii) Endorsements. 


(4) is Level 1. The following are concepts of selected legal issues: 

(1) Insurable interests. 

(2) Coinsurance (including computations). 

(3) Unoccupied building exclusions. 

(4) Interpretation of policies. 




876070067RFA) 

876 IAC 2-8-15 Federal income taxation of homeownership 




through (2) is Level 3. The following are concepts of deductions from 

income for homeowners: 

(1) Real property taxes. 

(2) Mortgage interest (limited deductions). 


(5) is Level 3. (Students should be afforded practice in performing the 

various computations associated with taxation of gain on the sale of 

personal residence.) The following are concepts of the sale of personal 

residence: 

(1) Basis and adjusted basis. 

(2) Determination of gain or loss. 

(3) Nature of gain or loss.

(4) Deferral of taxation on gain (“rollover” provisions). 

(5) Exclusion of gain by taxpayer over age fifty-five (55). 




876070067RFA) 

876 IAC 2-8-16 Real estate license law, commission rules and 

regulations; escrow account guidelines 



Sec. 16. In-depth knowledge of the Indiana Real Estate License Laws 

and Rules and Regulations booklet is required. Competency and 

instructional level is Level 3. 




876070067RFA) 

876 IAC 2-8-17 Real estate mathematics 



Sec. 17. (a) The competency and instructional level for real estate 

mathematics is Level 1 or Level 2. This section is included only for the 

purpose of listing in one (1) place the types of applied real estate 

mathematics calculations which students should master in this course. 

As a practical matter, it will be necessary to cover most of these various 

mathematics calculations at various points during the course. It is not 

feasible to cover all real estate mathematics required in the course as a 

separate subject area, although instructors may wish to have a “review” 

on real estate mathematics near the end of the course. 

(b) It should be noted that the mathematics listed below is applied real 

estate mathematics. This course outline does not provide for instruction 

in basic mathematics such as addition, subtraction, multiplication, 

division, decimals, fractions, or percentages. It is presumed that entering 

students possess these elementary mathematical skills. Should it be 

necessary to provide students with remedial instruction in basic 

mathematics, schools must include additional time for such instruction 

over and above the minimum time required for this course. 

(c) Instructors will note that competency and instructional levels are not 

assigned to topics in this section. Since all the topics (types of 

mathematics calculations) listed should be “mastered” by students, it is 

considered obvious that a working knowledge of these topics is required. 

Students are still expected to have a working knowledge of the 

mathematics associated with such topics. 

(d) Types of applied real estate mathematics calculations include the 

following concepts of brokerage commissions: 

(1) On sales. 

(2) On rentals. 

(3) Commission splits. 

(e) Estimating net to seller after brokerage fee and other closing 

expenses are paid (when setting listing price or considering an offer). 

(f) Concepts of profit/loss on sale of real estate (including 

percentages); equity (including percentages). 

(g) The following are concepts of area calculations: 

(1) Conversion of acreage to square footage and vice versa. 

(2) Calculations of square footage of variously shaped buildings and 

parcels of land with straight-line sides, including irregularly shaped 

parcels and buildings (involves application of formulas for calculating 

the area of squares, rectangles, trapezoids, and right triangles). 

(3) Cost and price per square foot, acre, front. 

(h) The following are concepts of financial calculations: 

(1) Simple interest (how to compute monthly interest and amount of 

interest paid over life of a fixed-rate loan). 

74 

(2) Monthly P and I payment (how to compute monthly P and I 

payment using “factors”, given the loan amount, interest rate, term, 

and factor). 

(3) Debt service and mortgage debt reduction (how to compute 

principal balance after one (1) monthly payment, given previous 

principal balance, monthly P and I payment and interest rate, without 

using amortization tables). 

(4) Loan origination fees and discount points. 

(5) Loan value (applying loan-to-value rations). 

(6) Yields (on mortgage loans involving discount points using “rule of 

thumb”). 

(7) Qualifying a buyer using given maximum expense/income ratios 

and other relevant data, determining: 

(A) the maximum PITI payment buyer can qualify for; 

(B) the maximum loan amount buyer can qualify for; 

(C) the minimum income required for buyer to qualify for a loan of 

“X” amount; 

(D) the maximum expenses buyer can have to qualify for a loan of 

“X” amount; or 

(E) whether or not buyer is qualified for a particular loan. 

Also computing “housing expenses” and “long-term debts” (recurring 

obligations) using given data. 

(i) Prorations at closing. (See section on “Closing Real Estate 

Transactions” for proration methods and items requiring proration.) 

(j) Preparation of closing statements. (Note: Although the salesperson 

license examination does not require candidates to work an entire closing 

statement (for both seller and buyer), students in this course should 

nevertheless be taught closing statement preparation. Salesperson 

license examination candidates may be required to work closing 

statement “mini” problems where, based on summarized data, they are 

asked to calculate the “net proceeds due to seller” or the “balance due 

from buyer”.) 

(k) A concept of appraisal math includes the following calculations 

involved with market data approach: 

(1) Adjustments to sale prices of comparables. 

(2) Calculating estimate of value. 

(l) The following are concepts of income tax calculations related to 

home ownership: 

(1) Calculating “deductions”. 

(2) Calculating “adjusted basis”. 

(3) Calculations related to the determination of “gain/loss realized”. 

(4) Calculations related to the “deferral of gain” in various situations 

and to the “exclusion of gain” by taxpayers over age fifty-five (55). 




19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

Rule 9. Real Estate Salesperson Course; Required Instructional 

Materials 

876 IAC 2-9-1 Required instructional materials 



Sec. 1. (a) The Indiana real estate license law booklet, which is 

available without charge from the Indiana real estate commission, is 

required instructional material for the real estate salesperson course. 

(b) Schools may also use such other textbooks and materials for 

instructional purposes that are appropriate and useful in teaching the 

salesperson curriculum provided for in 876 IAC 2-6 through 876 IAC 2-8. 


p.m.: 13 IR 652; filed Jul 25, 1991, 3:30 p.m.: 14 IR 2257; filed Jun 30, 

1999, 2:41 p.m.: 22 IR 3418; readopted filed Jun 29, 2001, 9:56 a.m.: 24

IR 3824; readopted filed Jul 19, 2007, 12:57 p.m.: 20070808-IR- 

876070067RFA) 

876 IAC 2-9-2 Approved textbooks (Repealed) 

Sec. 2. (Repealed by Indiana Real Estate Commission; filed Jul 25, 

1991, 3:30 p.m.: 14 IR 2257) 

876 IAC 2-9-3 Resource and supplemental course materials 

(Repealed) 


1991, 3:30 p.m.: 14 IR 2257) 

Rule 10. Fundamentals of Real Estate Broker Course; General 

876 IAC 2-10-1 Course description 



Sec. 1. (a) The real estate broker course consists of advanced level 

instruction in real property ownership and interests, transfer of title to real 

property, land use control, real estate brokerage and the law of agency, 

real estate contracts, landlord and tenant law, closing real estate 

transactions, federal income taxation of real estate, the Indiana real 

estate license statute, rules of the Indiana real estate commission, and 

basic securities law aspects of real estate transactions; major aspects of 

financing real estate transactions, including sources of mortgage funds, 

the secondary mortgage market, financing instruments, types of 

mortgage laws, underwriting mortgage loans, consumer legislation 

concerning real estate sales transactions, finance mathematics; and 

aspects of real estate brokerage operations, including records and 

bookkeeping and financial operations. 

(b) Students should be made aware that in addition to the content of 

the broker course, they are also responsible for material covered in the 

salesperson course as it represents basic knowledge necessary to 

proficient performance as a real estate broker. 




876070067RFA) 

876 IAC 2-10-2 Course objectives 



Sec. 2. The primary objectives of this course are: 

(1) to provide students with the knowledge of real estate law 

necessary to act as real estate brokers; and 

(2) to prepare students for the real estate license examination. 




876070067RFA) 

876 IAC 2-10-3 Syllabus 



Sec. 3. The course syllabus in 876 IAC 2-11 through 876 IAC 2-14 is 

established by the Indiana real estate commission to establish minimum 

content level for the broker course. 




876070067RFA) 

876 IAC 2-10-4 Textbooks and other instructional materials 


75 


Sec. 4. The required instructional materials and approved textbooks for 

the broker course are found in 876 IAC 2-15-1. 



filed Jun 30, 1999, 2:41 p.m.: 22 IR 3418; readopted filed Jun 29, 2001, 


20070808-IR-876070067RFA) 

876 IAC 2-10-5 Instructors 



Sec. 5. Instructors who meet the requirements of 876 IAC 2-3 may 

teach all subject areas included in this course. It should be noted that 

very few instructors actually possess the desired level of competency in 

each and every subject area. For this reason, schools are encouraged to 

utilize guest lecturers with specialized knowledge and skills in specific 

areas in addition to the primary instructor. 




876070067RFA) 

876 IAC 2-10-6 Order of subject area presentation 



Sec. 6. The order in which subject areas are presented in 876 IAC 2- 

11-1 and 876 IAC 2-12 is the recommended order. Instructors may make 

reasonable adjustments in the order of presentation, but should retain a 

logical order of presentation in any event. 




876070067RFA) 

876 IAC 2-10-7 Major subject area emphasis 



Sec. 7. Subject area emphasis by major subject area has been 

provided in 876 IAC 2-11 in the form of a specific number of classroom 

hours to be devoted to each major subject area. Instructors may make 

reasonable adjustments in subject area emphasis to suit their class 

schedules and individual preference; however, instructors are cautioned 

against undue overemphasis or underemphasis of topics. 




876070067RFA) 

876 IAC 2-10-8 Competency and instructional levels 



Sec. 8. (a) Each major topic established in 876 IAC 2-12 through 876 

IAC 2-14 has been assigned a “competency and instructional level” in 

order to assist the instructor in determining the appropriate relative 

emphasis and instructional methods for such topics. In some instances 

where subtopic should be afforded significantly greater or lesser 

emphasis than that indicated by the level assigned to the major topic 

under which it is listed, such subtopic has been assigned a different level 

which applies to that subtopic only. 

(b) Competency and instructional levels have been assigned based on 

the relative importance of the topic and the degree of knowledge or skill 

needed by real estate brokers with regard to the topic. Instructors are

REQUIRED to comply with the assigned competency and instructional 

levels (and special notes to instructors) when teaching this course. 

(c) As used in this section, “competency” refers to the knowledge/ability 

level expected of students with regard to a particular topic, while the term 

“instruction” refers to the depth of instruction and the instructional 

methods which should be utilized. 

(d) Shown below are the four (4) competency and instructional levels 

used in 876 IAC 2-12 through 876 IAC 2-14 and the meaning of each. 

Level 1 is the lowest level and Level 4 is the highest. 

Level 1 

Competency: Student should have a general familiarity with topic. 

Instruction: 

Instructor should discuss topic generally; do not 

cover in depth. 

Level 2 

Competency: Student should have a good basic knowledge and 

understanding of topic. 

Instruction: 

Instructor should cover topic in some moderate 

depth, using examples (as appropriate) to reinforce 

ideas, principles, and practices. Coverage should be 

sufficient to assure that students have a firm grasp of 

the basic facts, principles, and practices associated 

with the topic. 

Level 3 

Competency: Student should have a good working knowledge of 

topic. Student should not only have a good 

understanding of the basic facts, principles, and 

practices associated with the topic, but also should 

be able to apply his/her knowledge to fact situations 

which will likely be encountered in real estate 

practice. 

Instruction: 

Instructor should cover topic in depth, using 


principles, and practices and requiring students to 

complete practical work assignments (as appropriate) 

to demonstrate both their ability to apply their 

knowledge to common fact situations which will be 


Level 4 

Competency: Student should have a thorough and complete 

working knowledge of topic. Student should not only 

have a thorough, in-depth understanding of the facts, 

principles, and practices associated with the topic, 

but should also be able to apply his/her knowledge to 

a wide variety of fact situations which may be 


Instruction: 

Instructor should cover topic in depth, using 


principles, and practices, and requiring students to 

complete extensive practical work assignments (as 

appropriate) to demonstrate both their understanding 

of the topic and their ability to apply their knowledge 

to a wide variety of fact situations which may be 





876070067RFA) 

876 IAC 2-10-9 Mathematics instruction 



Sec. 9. 876 IAC 2-11 through 876 IAC 2-14 establishes instruction on 

mathematical functions relating to real estate practice to be provided 

under the various subject areas involving such mathematical functions 

76 

rather than as a separate subject area. Consideration was given to the 

amount of mathematics involved in each subject area when establishing 

the number of classroom hours for subject areas. This integrated 

approach is required because it helps assure that students understand 

how various mathematical functions relate to the various areas of real 

estate practice. Instruction in basic mathematics concepts such as 

decimals, fractions, percentages, multiplication, division, etc., is not 

included in 876 IAC 2-11 through 876 IAC 2-14. If such basic 

mathematics instruction is to be included in any real estate course, 

additional time above the minimum required for such course must be 

provided for such instruction. 




876070067RFA) 

876 IAC 2-10-10 Syllabus copies 



Sec. 10. (a) Copies of this rule and 876 IAC 2-11 through 876 IAC 2-14 

will be provided free of charge by the Indiana real estate commission to 

approved schools and instructors. School officials and instructors are 

asked, however, to limit requests for copies to that number which is 

actually needed for use by schools and instructors. Schools and 

instructors may be asked to justify any request for an unusually large 

number of copies. 

(b) The Indiana real estate commission will not provide copies of this 

rule and 876 IAC 2-11 through 876 IAC 2-14 for student use, although 

schools and instructors may reproduce all or part of this rule and 876 IAC 

2-11 through 876 IAC 2-14 for student use at their own expense, and 

may charge students for the cost of reproduction. 




876070067RFA) 

876 IAC 2-10-11 Level of instruction 



Sec. 11. (a) Although this is a broker course, most of the subject areas 

covered in this course are also covered in the fundamentals of real estate 

salesperson course which students will have previously completed. This 

duplication of material is unavoidable because of the necessity to cover a 

broad range of real estate topics in the salesperson course. The only 

subject areas covered in this course which are not covered to some 

extent in the salesperson course are “Introduction to Real Estate Law”, 

“Securities Law”, and the sections of “Federal Income Taxation of Real 

Estate” relating to investment property. All other subject areas are 

covered in both courses, although the “competency and instructional 

levels” assigned to such subject areas in this course are usually higher 

than the levels assigned in the salesperson course. 

(b) In general, instruction in the broker course should be at a more 

advanced level than instruction in the salesperson course. Emphasis 

generally should be on providing students with an in-depth, practical 

working knowledge of the subject material. Remember, this is an 

advanced course, not an introductory level course. The two (2) major 

subject areas that should receive the greatest emphasis in this course 

are “Real Estate Contracts” and “Closing Real Estate Transactions”. The 

Indiana real estate commission has found that many licensed brokers 

have an inadequate understanding of real estate contracts and are 

unable to properly complete form contracts in some situations. Also, 

license examination performance on closing statement problems has 

historically been very poor. Consequently, instructors should place

substantial emphasis on practice preparation of contracts and closing 

statements. 




876070067RFA) 

Rule 11. Real Estate Broker Course; Major Subject Area Emphasis 

876 IAC 2-11-1 Major subject area; number of course hours 



Sec. 1. The fundamentals of the real estate broker course are the 

following: 

FUNDAMENTALS OF REAL ESTATE BROKER PRELICENSING 

COURSE MAJOR SUBJECT AREA EMPHASIS 

Number of 

Subject Area 

Course Hours 

REAL ESTATE LAW 

Introduction to real estate law and course review 1.0 

Property ownership and interests 1.0 

Transfer of title to real property 1.0 

Land use controls 1.0 

Real estate brokerage and the law of agency 3.0 

Real estate contracts 8.0 

Landlord and tenant 1.0 

Closing real estate transactions 9.0 

Federal income taxation of real estate 3.0 

License law; commission rules and trust account guidelines 5.0 

Securities law aspects of real estate transactions 1.0 

REAL ESTATE BROKERAGE OPERATION 

Earnest money accounts 4.0 

REAL ESTATE FINANCE 

Introduction to real estate finance 2.0 

Sources of mortgage funds 1.0 

The secondary mortgage market 1.0 

Financing instruments 1.0 

Types of mortgage loans 2.0 

Residential loan underwriting 2.0 

Income property loan underwriting 1.0 

Consumer legislation affecting real estate financing 1.0 

Real property valuation 5.0 

Total course hours 54.0 




19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

Rule 12. Real Estate Broker Course; Outline 

876 IAC 2-12-1 Introduction to real estate law 



Sec. 1. (a) The competency and instructional level for scope and 

purpose of course is Level 1. 


(3) is Level 1. The following are concepts of types (sources) of real estate 

law (Use examples relating to real estate in explaining each type (source) 

of law.): 

(1) Statutory law (arising from the political process) including the 

following: 

(A) Constitutions: federal, i.e., Fifth Amendment, which provides 

that “no person shall be . . . deprived of life, liberty or property 

77 

without due process of law; nor shall private property be taken for 

public use without just compensation”. 

(B) The following statutes: 

(i) Federal, i.e., RESPA: National Housing Act (establishing the 

FHA), Fair Housing Act, and many others. 

(ii) State, i.e., Indiana real estate license law. 

(C) Ordinances (county and municipal, i.e., zoning ordinances, fire 

and building codes). 

(2) Administrative law (regulation and rulings of federal and state 

agencies) including the following: 

(A) Federal, i.e., Regulation “Z” implementing the Truth-in-Lending 

Act, HUD regulations on FHA loans, and many others. 

(B) State, i.e., Indiana real estate commission rules and 

regulations [this title]. 

(3) Common law (judicial law arising from court decisions), i.e., most 

real property law, including law regarding estates and interests in 

real property, methods of owning real property, easements and other 

rights relating to real property also, agency and contract law, much 

of which applies to real estate brokerage practice. 




876070067RFA) 

876 IAC 2-12-2 Property ownership and interests 




through (5) is Level 3. The following describes the concept of property: 

(1) The “bundle of rights” concept. 

(2) Real property. 

(3) Personal property. 

(4) Lands, minerals, fruits of the soil. 

(5) The following fixtures: 

(A) Definition. 

(B) Criteria for determining if item is a fixture. (Students should be 

able to apply these criteria to common fact situations.) 

(C) Trade and agricultural fixtures. 

(D) Effect of Uniform Commercial Code concerning security 

interests in fixtures. 

(b) The competency and instructional level for subdivisions (1), 

(2)(A)(i)(AA), (2)(A)(i)(CC), (2)(A)(ii)(AA), and (2)(B) is Level 2. The 

competency and instructional level for subdivisions (2)(A)(i)(BB) and 

(2)(A)(ii)(BB) is Level 1. The following are concepts of estates in real 

property: 

(1) Definition of “estate”. 

(2) The following types of estates (characteristics of each): 

(A) Freehold estates as follows: 

(i) The following estates of inheritance: 

(AA) Fee simple. 

(BB) Determinable, base, or qualified fee. 

(CC) Estate for life of another. 

(ii) The following estates not of inheritance (life estates): 

(AA) Estate for tenant's own life (conventional life estate). 

(BB) Marital life estates. 

(B) Nonfreehold (leasehold) estates. (Cover in greater depth in 


(c) The competency and instructional level for subdivisions (1) and 

(2)(B) through (2)(D) is Level 2. The competency and instructional level 

for subdivisions (2)(A) and (3) is Level 1. The following are concepts of 

ownership of real property: 

(1) Severalty (sole) ownership. 

(2) The following concurrent (joint) ownership (characteristics of 

each method):

(A) Joint tenancy. 

(B) Tenancy in common. 

(C) Tenancy by the entirety. 

(D) The following hybrid forms of ownership: 

(i) Condominium ownership. 

(ii) Cooperative ownership. 

(iii) Townhouse ownership. 

(iv) Time share ownership. 

(v) Planned unit development (PUD). 

(3) The following ownership by a business organization: 

(A) Advantage over ownership by individual(s). 

(B) The following types of organizations: 

(i) Corporation. 

(ii) Partnership (general and limited). 

(iii) Syndicate. 

(iv) Real estate investment trust (REIT). 

(d) The competency and instructional level for subdivisions (1)(A), 

(1)(C), and (2) through (5) is Level 2. The competency and instructional 

level for subdivision (1)(B) is Level 1. The following are concepts of 

encumbrances to real property: 

(1) The following liens: 

(A) The following specific liens: 

(i) Mortgages (deeds of trust). (Mention only, cover in depth 

under 876 IAC 2-14-3.) 

(ii) Real estate tax and assessment liens. 

(iii) Mechanics' liens (statutory liens). 

(B) The following general liens: 

(i) Judgment liens. 

(ii) Personal property tax liens. 

(iii) State tax liens. 

(iv) Federal tax liens. 

(C) Lien priority. 

(2) Restrictive covenants. (Cover in depth under section 7 of this 

rule.) 

(3) Lis pendens (notice of pending litigation). 

(4) The following classifications of easements: 

(A) The following classification of easements: 

(i) Appurtenant easements. 

(ii) Easements in gross. 

(B) The following creation of easements (types by method of 

creation): 

(i) Express. 

(ii) Implied. 

(iii) Arising by operation of law. 

(C) Termination of easements. 

(D) Party wall (cross easements). 

(5) Encroachments. 


(3) is Level 2. The following are concepts of appurtenances: 

(1) Easements and restrictive covenants. 

(2) Riparian rights. 

(3) Air and subsurface rights. 


(2) is Level 4. The following are concepts of property taxation in Indiana: 

(1) The following topics concerning property tax: 

(A) Tax rate and calculations. 

(B) Property subject to taxation. 

(C) Listing property for taxation. 

(D) Appraisal and assessment. 

(E) Timetable for listing and tax collection. 

(F) Property tax lien. 

(G) Special priority of tax liens. 

(H) Exemptions. 

(I) Records. 

78 

(J) Payment. 

(2) The following special assessments: 

(A) By counties. 

(B) By cities and towns. 

(C) Special assessment liens. 




19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 2-12-3 Transfer of title to real property 




through (4) is Level 1. The following are concepts of methods of 

transferring title: 

(1) By descent (interstate succession). 

(2) By will. 

(3) By voluntary alienation (deed). (Cover in greater depth under 

subsection (b).) 

(4) By voluntary alienation as follows: 

(A) Lien foreclosure sale. 

(B) Adverse possession. 

(C) Escheat. 

(D) Eminent domain (condemnation). 


(2) is Level 2. The competency and instructional level for subdivision 

(2)(B) is Level 1. The following are concepts of deeds: 

(1) Essential elements of a valid deed. 

(2) The following types of deeds (purpose and characteristics of 

each): 

(A) The following types most commonly used in Indiana (Use 

sample deed form for illustration.): 

(i) General warranty deed. 

(ii) Special warranty deed. 

(iii) Quit claim deed. 

(B) Special purpose deeds. 


(4) is Level 2. The competency and instructional level for subdivision (5) 

is Level 1. The following are concepts of title assurance: 

(1) Title examination procedures. (If possible, take students on tour 

of courthouse to view records.) 

(2) Title insurance including the following: 

(A) Purpose. 

(B) The following types of policies: 

(i) Owner's policies. 

(ii) Mortgagee's (lender's) policy. 

(C) Policy coverage. 

(D) Cost and procurement. 

(3) Abstract of title. 

(4) Title recordation including the following: 

(A) Purpose. 

(B) Documents required to be recorded. 

(C) Recording contracts. 

(D) Requirements for recordation. 

(E) Procedures. 

(5) Covenants of title in deeds. 


(2) is Level 2. The following are concepts of property description: 

(1) Adequacy of descriptions. 

(2) Methods of describing real estate including the following: 

(A) Metes and bounds. 

(B) Government (rectangular) survey system. 

(C) Reference to recorded plat (lot and block).

(D) Informal reference, i.e., street address. 

(E) Reference to publicly recorded documents. 




876070067RFA) 

876 IAC 2-12-4 Land use controls 



Sec. 4. (a) The competency and instructional level for historical 

development of land use controls is Level 1. 

(b) The competency and instructional level for land use control 

importance to real estate agents is Level 1. 



is Level 1. The following are concepts of public land use controls: 

(1) The following zoning classifications (Use actual local zoning 

ordinances, zoning maps, classification charts, and tables of 

permitted uses; students should know how to determine the zoning 

classification and permitted uses for property subject to a zoning 

ordinance.): 

(A) Basis for governmental zoning authority. 

(B) Purpose of zoning regulations. 

(C) Zoning districts (and codes). 

(D) Zoning ordinances. 

(E) The following zoning concepts and terms: 

(i) Nonconforming use. 

(ii) Illegal use. 

(iii) Zoning amendments. 

(iv) Variance. 

(v) Special use permit (or special exception). 

(vi) Overlay districts. 

(vii) Historic preservation zoning. 

(viii) Aesthetic zoning. 

(ix) Spot zoning. 

(2) Urban and regional planning. 

(3) Subdivision regulations. 

(4) Building codes. 

(5) Highway access controls. 

(6) Federal regulation of interstate sales of subdivided lands. 

(7) Environmental protection legislation (and regulation). 


(3) is Level 3. The following are concepts of privately imposed land use 

controls (restrictive covenants) (Use typical set of subdivision covenants 


(1) Purpose. 

(2) Typical matters addressed. 

(3) Enforcement. 

(e) The competency and instructional level for concepts of government 

ownership related to land use is Level 1. 




876070067RFA) 

876 IAC 2-12-5 Real estate brokerage and the law of agency 



Sec. 5. (a) The competency and instructional level for general agency 

concepts and definitions is Level 2. 


(3) is Level 2. The following are concepts of classification of agency 

relationships: 

79 

(1) Universal. 

(2) General. 

(3) Special. 


(2) is Level 4. The following are concepts of employment and authority of 

real estate agents: 

(1) Brokerage contracts (as source of authority). (Cover listing 

contracts and property management contracts in detail where 

subsequently addressed.) 

(2) Extent (scope) of agent's authority. 


(4) is Level 4. The following are concepts of agency and subagency 

situations: 

(1) Listing with independent broker, i.e., a single broker working 

alone. 

(2) Listing with brokerage firm. 

(3) Multiple listing service (or cooperating broker) arrangement. 

(4) Buyer-broker relationship. 


(3) is Level 4. The following are concepts of duties and liabilities of 

agents: 

(1) Agent's duties to principal including the following: 

(A) Loyalty and obedience. (Note potential problems involved with 

“self-dealing” and “conflict of interest” situations.) 

(B) Skill, care, and diligence. 

(C) Disclosure (and nondisclosure) of information. 

(D) Accounting. 

(E) Competence in the particular activity. 

(F) Fiduciary responsibilities. 

(G) “Prudent Man” rule. 

(2) Agent's duties to third persons (buyers/tenants) including the 

following: 

(A) Difference between a “client” and a “customer” in real estate 

practice. 

(B) General duty of “honesty and fairness”. 

(C) The following prohibited conduct: 

(i) Willful misrepresentation. 


(iii) Willful omission. 

(iv) Negligent omission. 

(v) Misrepresentation. 

(vi) Fraud. 

(D) Consumer legislation. 

(E) Purchaser's responsibilities. 

(F) Tenant's responsibilities. 

(G) “Puffing”. 

(3) Liabilities and consequences of agent's breach of duties including 


(A) Disciplinary action by real estate commission (against agent). 

(B) Civil liability of agent. 

(C) Criminal liability of agent. 

(D) Civil liability of principal (for agent's misconduct). 


(3) is Level 3. The following are concepts of duties and liabilities of 

principals: 

(1) Principal's duties to agent including the following: 

(A) Good faith. 

(B) Compensation. 

(2) Principal's duties to third persons. (Note doctrine of caveat 

emptor and limitations to such doctrine established by consumer 

protection laws and judicial decisions.) 

(3) Liabilities and consequences of principal's breach of duties 


(A) Criminal in some cases.

(B) Civil liability. 




876070067RFA) 

876 IAC 2-12-6 Real estate contracts 




through (6) and (10) is Level 4. The competency and instructional level 

for subdivisions (7) through (8) is Level 1. The competency and 

instructional level for subdivision (9) is Level 3. The following are 

concepts of basic contract law: 

(1) The following basic contract terms and classifications: 

(A) Definition of a contract. 

(B) Express/implied. 

(C) Bilateral/unilateral. 

(D) Executed/executory. 

(E) Valid (enforceable)/void (unenforceable)/voidable. 

(2) Essential elements of a contract with the following requirements 

for mutual assent (offer and acceptance): 

(A) The offer. 

(B) Acceptance. 

(C) Counteroffers. 

(D) Termination of offers. 

(3) The following requirements for reality of consent: 

(A) Mistake. 

(B) Fraud and misrepresentation. 

(C) Duress. 

(D) Undue influence. 

(4) Contract law and auction sales as follows: 

(A) Basic procedures. 

(B) “With reserve” versus “without reserve”. 

(5) The following statute of frauds (applied to real estate contracts): 

(A) Contracts to sell or convey any interest in real property. 

(B) Leases of real property exceeding three (3) years in duration. 

(6) The following discharge of contracts: 

(A) Agreement of the parties. 

(B) Full performance. 

(C) Impossibility of performance. 

(D) Operation of law. 

(7) Assignment of contracts. 

(8) General rules for interpretation of contracts. 

(9) The following contract remedies: 

(A) Money damages. 

(B) Specific performance. 

(C) Recision. 

(10) The following other considerations: 

(A) Authority to sign as follows: 

(i) Competency. 

(ii) Age. 

(iii) Power of attorney. 

(iv) Need for signatures of all parties. 

(B) Notary public. 

(C) Changing a contract. 

(D) “Time is of the essence”. 

(E) Abbreviations in contracts. 

(F) Blanks in contracts. 

(G) Who may write contracts. 


(8) is Level 4. The following are concepts of listing contracts and 

practices: 

(1) Definition and purpose of listing contracts. 

80 

(2) Broker's entitlement to a commission including the following: 

(A) Requisites for establishing claim to a commission as follows: 

(i) Broker must be licensed. 

(ii) Broker must have a valid employment (listing) contract. 

(iii) Broker must (with certain exceptions) qualify under either: 

(AA) the “ready, willing, and able” buyer rule; or 

(BB) the “procuring cause of sale” rule. 

(B) Ready, willing, and able buyer rule. 

(C) Procuring cause of sale rule. 

(3) The following basic types of listing contracts (characteristics of 

each): 

(A) Open. 

(B) Exclusive agency. 

(C) Exclusive right to sell. 

(D) Protection agreement. 

(4) Multiple listing service arrangement. (Use sample pages from 

local MLS book for illustration of how the MLS lists properties.) 

(5) Listing contract provisions including the following (Introduce 

listing agreement used on state examination.): 

(A) Property description. 

(B) Listing price and terms of sale. 

(C) Broker's duties. 

(D) Brokerage fee including the following (including computations): 

(i) Percentage of sale price (commission). 

(ii) Flat fee. 

(iii) Net listing. 

(iv) Splitting the fee. 

(E) Duration of listing. 

(F) “Override” (or “extender”) clause. 

(6) Property data sheet including the following: 

(A) Purpose and use. 

(B) Listing agent's responsibilities. 

(C) Determining square footage. 

(D) Seller's disclosure of defects. 

(7) Termination of listing contracts. 

(8) Practice preparation of listing contracts and property data sheets. 

(Students should be afforded extensive supervised practice in 

completing form listing contracts and property data sheets. Note the 

consequences of inadequate or improper preparation of listing 

contracts and property data sheets.) 


4. The competency and instructional level for subdivision (2) is Level 2. 

The competency and instructional level for subdivision (3) is Level 3. The 

following are concepts of sales contracts and practices: 

(1) The offer to purchase including the following (Students should be 

afforded extensive supervised practice in completing an offer to 

purchase as used on the state examination including special 

provisions and modifications by counteroffer, for a variety of fact 

situations.): 

(A) Major contract provisions as follows: 

(i) Description of the property (including personal property to be 

included in the sale). 

(ii) Sale price and payment terms. 

(iii) Earnest money and possible forfeiture thereof as follows: 

(AA) Forms of earnest money. 

(BB) Post-dated checks. 

(CC) Importance of explaining to buyer and seller the handling 

of an earnest deposit. 

(iv) Type of conveyance and quality of title. 

(v) Closing and possession dates. 

(vi) Closing expenses and prorations. 

(vii) Condition of utilities. 

(viii) Condition of property in general. 

(ix) Risk of loss.

(x) Wood-destroying insects. 

(xi) Contingency provisions as follows: 

(AA) Buyer financing. 

(BB) Sale of buyer's present home. 

(xii) Signature and dates. 

(B) Offer, acceptance, and delivery as follows (review of legal 

requirements as applied to this type of contract): 

(i) Handling by telephone. 

(ii) Handling by mail. 

(iii) Withdrawal of offer. 

(C) Submitting offers to sellers; conditional “back-up” offers. 

(D) Handling contract modifications and counteroffers. 

(E) Furnishing copies of offers and contracts to buyer and seller. 

(F) Specific performance. 

(G) Disclosure by agent that he represents the buyer, the seller, or 

both. 

(2) Installment land contracts including the following (Use sample 

form for illustration.): 


(B) Typical provisions. 

(C) Advantages and disadvantages (from viewpoint of both buyer 

and seller). 

(D) Preparation. 

(E) Default and foreclosure. 

(F) Voluntary termination. 

(G) Recording. 

(3) Options to purchase real estate including the following (Use 

sample form for illustration.): 


(B) Rights of parties. 

(C) Requirements of options. 

(D) Right of first refusal. (Distinguish from “option”.) 


(6) is Level 3. The following are concepts of property management: 

(1) Property description. 

(2) Contract period. 

(3) Agent's, property manager's fee (including computations). 

(4) Agent's authority (powers). 

(5) Agent's responsibilities (specific duties). 

(6) Handling of security deposits and rents. (Note the handling of 

security deposits and rents should be covered in depth when 

covering the real estate commission's “Trust Account Guidelines”.) 


5:00 p.m.: 13 IR 660; errata, 13 IR 1188; errata filed Jun 2, 1998, 11:33 

a.m.: 21 IR 3940; readopted filed Jun 29, 2001, 9:56 a.m.: 24 IR 3824; 


876 IAC 2-12-7 Landlord and tenant 




through (2) is Level 2. The following are concepts of relationship of 

landlord and tenant: 

(1) Definitions: landlord (lessor), tenant (lessee), lease. 

(2) Privity of estate and privity of contract concepts. 


(9) is Level 3. The following are concepts of the Residential Rental 

Agreements Act: 

(1) Obligations of landlord and tenant are mutually dependent. 

(2) Landlord's statutory duties. 

(3) Relationship of the law of negligence. 

(4) Tenant's statutory duties. 

(5) Retaliatory eviction doctrine. 

(6) Tenant prohibited from unilaterally withholding rent. 

81 

(7) Tenant security deposit. 

(8) Residential eviction remedies. 

(9) Constitutional rights of tenants in public housing. 


(4) is Level 2. The following are concepts of nonfreehold estates: 

(1) Estates for years. 

(2) Estates for period to period (periodic tenancies). 

(3) Estates at will. 

(4) Estates at sufferance. 

(d) The competency and instructional level for subdivisions (1) and (4) 

through (6) is Level 2. The competency and instructional level for 

subdivisions (2) through (3) is Level 4. The following are concepts of 

leases: 

(1) Types of leases including the following (uses and characteristics 

of each): 

(A) Fixed rental (flat); gross. 

(B) Percentage. 

(C) Net. 

(D) Graduated. 

(E) Index. 

(F) Reappraisal. 

(G) Ground. 

(H) Mineral. 

(2) Lease forms and preparation. 

(3) Common lease provisions including the following (Use the 

realtor's residential rental contract form for illustration.): 

(A) Essential provisions (basically the same as for any contract). 

(B) Other common provisions including the following (relating to 

matters listed below and similar matters): 

(i) Tenant's use of premises. 

(ii) Fixtures. 

(iii) Repairs (nonresidential property). 

(iv) Assignments and subleases. 

(v) Renewal. 

(vi) Option to purchase and right of first refusal. 

(vii) Landlord's right to enter during lease term. 

(viii) Termination. 

(4) Application of statute of frauds and common law. 

(5) Recordation of leases. 

(6) Effect of lease upon sale of property. 




876070067RFA) 

876 IAC 2-12-8 Closing real estate (sales) transactions 




through (3) is Level 4. (The prevalent closing method used in Indiana. 

Remainder of section on “closing” is based on this method.) The 

following are concepts of the closing meeting: 

(1) Parties present or represented. 

(2) Location where meeting is conducted. 

(3) Parties responsible for closing. 


(10) is Level 4. The following are concepts of preliminaries to closing: 

(1) Property survey (usually the buyer's responsibility). 

(2) Wood-destroying insect (termite) inspection (usually the seller's 


(3) Title examination (including personal property lien search and 

mechanic's lien inquiry) (buyer's responsibility). 

(4) Abstract of title or title insurance (variations of responsibility). 

(5) Property inspection by buyer.

(6) Clearing of title defects by seller. 

(7) Homeowner's or hazard insurance (buyer's responsibility). 

(8) Sewage disposal or percolation test (usually the seller's 

responsibility if such a test is required). 

(9) Drafting and review of documents including the following: 

(A) Deed (and any other required documents relating to title) 

(seller's responsibility). 

(B) Note and mortgage (deed of trust) (buyer's responsibility). 

(C) Bill of sale for personal property (if required) (seller's 


(D) Closing statement(s) (closing attorney/broker). 

(10) Post-closing title search (buyer's responsibility). 

(c) The competency and instructional level for items required at closing 

is Level 4. (Cover the items that must be provided at closing by the buyer 

and seller, either personally or through their attorney(s).) 


(2) is Level 4. The following are concepts of prorations at closing: 

(1) The following methods of calculating prorations: 

(A) Three hundred sixty (360) day year/thirty (30) day month 

method. 

(B) Three hundred sixty-five (365) day year method. 

(C) Actual days in the month method (combines clauses (A) 

through (B)). 

(D) Proration tables, programmed calculators, etc. 

(E) Choice of methods (usually determined by local custom and/or 

agreement of parties). 

(2) The following items commonly prorated at closing: 

(A) Real estate taxes for current year. 

(B) Homeowner's/hazard insurance premiums on assigned policy. 

(C) Rents on leased premises. 

(D) Interest on assumed mortgage. 


(7) is Level 4. The following are concepts of the closing statement: 

(1) Purpose and preparation. 

(2) Broker's responsibility for closing statements. 

(3) Closing statement format (HUD-1 form and others). 

(4) Closing statement entries as follows (Students are expected to 

have a good working knowledge of how to record various closing 

statement entries that may be required in various situations in 

accordance with standard practices.): 

(A) Explanation of “debit/credit” system. 

(B) Double entry items as follows: 

(i) Prorations. 

(ii) Other nonprorated items. 

(C) Single entry items as follows: 

(i) Debits (charges) to seller. 

(ii) Credits to seller. 

(iii) Debits (charges) to buyer. 

(iv) Credits to buyer. 

(D) Balance due seller. 

(E) Balance owed by buyer. 

(5) Handling funds at closing. 

(6) Practice preparation of closing statements. (Students should be 

afforded extensive practice in the preparation of closing statements 

for various hypothetical situations involving varied circumstances. 

Students should be able to prepare closing statements using the 

HUD-1 form and other forms which may be commonly used in the 

local area.) 

(7) Requirement for settlement agent to report certain information on 

residential real estate sales transactions to the Internal Revenue 

Service (IRS). 


(2) is Level 2. The following are concepts of the Real Estate Settlement 

Act of 1974 (RESPA): 

82 

(1) Purpose and applicability. 

(2) Basic provisions including the following: 

(A) Requires lender to provide prospective borrowers with a copy 

of the HUD booklet “Settlement Costs and You” and “good faith 

estimates” of loan closing costs within three (3) business days of 

the date a loan application is filed. 

(B) Lender must use HUD-1 form for all “federally related” 

mortgage loans. 

(C) Upon demand by borrower, lender must permit borrower to 

examine the closing statement at least one (1) business day prior 

to closing. 

(D) Prohibits lenders from paying “kickbacks” for referrals. 

(E) Regulates reserve (impound or escrow) accounts for payment 

of property taxes and insurance premiums. 

(F) Other financing considerations including the following: 

(i) Use of gift letters, pledged accounts, etc. 

(ii) Second mortgage. 




876070067RFA) 

876 IAC 2-12-9 Federal income taxation of real estate 




through (2) is Level 3. The following are concepts of homeownership: 

(1) Deductions from income for homeowners including the following: 

(A) Real property taxes. 

(B) Mortgage interest (limited deduction). 

(2) Sale of personal residence including the following (Students 

should be afforded practice in performing the various computations 

associated with taxation of gain on the sale of a personal 

residence.): 

(A) Basis and adjusted basis. 

(B) Determination of gain or loss. 

(C) Nature of gain or loss. 

(D) Deferral of taxation on gain (“rollover” provisions). 

(E) Exclusion of gain by taxpayers over age fifty-five (55). 


(2) is Level 2. The following are concepts of real estate investments 

(Students should be afforded practice in performing the basic tax 

computations associated with operating or selling investment real estate, 

but fact situations should be simple and uncomplicated.): 

(1) Real estate operations including the following: 

(A) Accounting methods. 

(B) Determination of net (taxable) income as follows: 

(i) Gross rental income received. 

(ii) Deductions for collection losses and operating expenses. 

(iii) Deduction for depreciation. 

(iv) Losses. 

(2) Sale of investment real estate including the following: 

(A) Determination of gain or loss. 

(B) Taxation of gain or loss. 


(4) is Level 1. The following are concepts of special rules: 

(1) Installment sales (basic concept). 

(2) Like-kind exchange (basic concept). 

(3) Vacation homes (basic rules). 

(4) Office in home (basic rules). 




876070067RFA)

876 IAC 2-12-10 Real estate license law, commission rules; trust 

account guidelines 



Sec. 10. In-depth knowledge of the Indiana Real Estate License Laws 

and Rules booklet is required. The competency and instructional level is 

Level 4. 




876070067RFA) 

876 IAC 2-12-11 Securities law aspects of real estate transactions 



Sec. 11. The competency and instructional level for subdivisions (1) 

through (5) is Level 1. The following are concepts of federal laws relating 

to the Securities Act of 1933 and the Securities Exchange Act of 1934: 

(1) Basic purpose. 

(2) Definition of “security” including the following: 

(A) Investment contracts. 

(B) Interests in real estate limited partnerships. 

(C) Other interests in real estate ownership entities involving “profit 

sharing arrangements”. 

(3) Requirements of the Securities Act of 1933 including the 

following: 

(A) Registration of all “securities” with Securities Exchange 

Commission (SEC) (unless exempt for some reason). 

(B) Truthful and complete disclosure of all pertinent facts about the 

property and transaction. 

(C) Right of recision. 

(D) Civil liabilities and criminal penalties. 

(4) Requirements of the Securities Exchange Act of 1934 including 


(A) Persons selling “securities” must have a federal securities 

license (with certain exemptions). 

(B) Most licensing handled by National Association of Securities 

Dealers (NASD) under authority of the federal law. 

(5) Applicability and enforcement of federal securities laws, generally 

applicable except for certain securities transactions which are wholly 

“intrastate”; enforced by Securities and Exchange Commission 

(SEC). 




876070067RFA) 

876 IAC 2-12-12 Real estate mathematics 




mathematics is Level 1 or Level 2. This section is included only for the 

purpose of listing in one (1) place the types of applied real estate 

mathematics calculations which students should master in this course. 

As a practical matter, it will be necessary to cover most of these various 

mathematics calculations at various points during the course. It is not 

feasible to cover all real estate mathematics required in the course as a 

separate subject area, although instructors may wish to have a “review” 

on real estate mathematics near the end of the course. 

(b) It should be noted that the mathematics listed below [subsections 

(c) through (d)] is applied real estate mathematics. This course outline 

[this rule] does not provide for instruction in basic mathematics such as 

addition, subtraction, multiplication, division, decimals, fractions, or 

83 

percentages. It is presumed that entering students possess these 

elementary mathematics skills. Should it be necessary to provide 

students with remedial instruction in basic mathematics, schools must 

include additional time for such instruction over and above the minimum 

time required for this course. 







(d) The following are concepts of mathematics calculations: 

(1) Brokerage commissions. (Do not devote class time to this topic 

since it is covered adequately in the salesperson course.) 

(2) Estimating net to seller after brokerage fee and other closing 

expenses are paid (when setting listing price or considering an offer). 

(3) Area calculations including the following: 

(A) Conversion of acreage to square footage and vice versa. 

(B) Calculation of square footage of variously shaped buildings 

and parcels of land with straight-line sides, including irregularly 

shaped parcels and buildings (involves application of formulas for 

calculating the area of squares, rectangles, trapezoids, and right 

triangles). 

(4) Property taxes. 

(5) Prorations at closing. (See section on “Closing Real Estate 

Transactions” [section 8 of this rule] for proration methods and items 

requiring proration.) 

(6) Preparation of closing statements. (Note: broker license 

examination candidates will be required to work an entire closing 

statement (for both buyer and seller) based on a fact situation and 

also may be required to work closing statement “mini” problems 

where, based on summarized data, they are asked to calculate the 

“net proceeds due seller” or the “balance due from buyer”.) 

(7) Income tax calculations including the following: 

(A) Homeownership as follows: 

(i) Calculating “deductions”. 

(ii) Calculating “adjusted basis”. 

(iii) Calculations related to the determination of “gain/loss 

realized”. 

(iv) Calculations related to the “deferral of gain” in various 

situations and to the “exclusion of gain” by taxpayers over age 

fifty-five (55)”. 

(B) Real estate investments as follows: 

(i) Calculating net taxable income/loss on real estate operations. 

(ii) Calculating gain/loss on sale of investment real estate. 




19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

Rule 13. Real Estate Brokerage Operation 

876 IAC 2-13-1 Earnest money accounts 



Sec. 1. (a) The competency and instructional level for introduction and 

definition of earnest money accounts is Level 4. 

(b) The competency and instructional level for legal requirements of 

earnest money accounts is Level 4. The following are concepts of legal 

requirements of earnest money accounts: 

(1) Statutory provisions. 

(2) Rule provisions. 

(c) The competency and instructional level for trust funds is Level 4. 

The following are concepts of trust funds:

(1) Definition. 

(2) Examples including the following: 

(A) Earnest money deposits. 

(B) Tenant security deposits. 

(C) Rents. 

(D) Down payments. 

(E) Money received as part of final settlement. 

(3) Funds that are not trust funds (not to be deposited in escrow 

account); money from nonreal estate transactions. 

(4) Money from transactions in which the broker is not acting as an 

agent. 

(d) The competency and instructional level for trust accounts is Level 4. 

The following are concepts of trust accounts: 


(2) Must be a “demand” account. 

(3) Purposes of requiring trust accounts. 

(4) Opening a trust account including the following: 

(A) Must be with an insured bank or savings and loan association 


(B) Only one (1) trust account is required, although separate 

accounts for sales and rentals may be a good idea. 

(C) Account must be designated as “trust” or “escrow” account. 

(D) Account may be subject to service charges which must be paid 

by broker. Broker may maintain one hundred dollars ($100) (or 

amount required) of personal funds in account to cover such 

charges. 

(5) Interest bearing trust accounts including the following: 

(A) Note specific requirements which broker must meet. 

(B) Investment of trust funds in securities, certificates of deposit, 

bonds, etc. is prohibited. 

(C) Treatment of interest earned. 

(e) The competency and instructional level for depositing trust funds is 

Level 4. The following are concepts related to the deposit of trust funds: 

(1) Broker (firm) is the trustee or escrow agent and should be named 

as such in the appropriate transaction document. 

(2) The listing broker in a cobrokered transaction is responsible for 

the earnest money. 

(3) Funds received by a salesperson must be immediately delivered 

to his/her broker. 

(4) Principal broker is strictly responsible for trust accounts and trust 

funds, regardless of who actually performs the day-to-day work. 

(5) Earnest money deposits must be deposited within two (2) 

banking days following acceptance of the offer to purchase or lease. 

(f) The competency and instructional level for disbursing trust funds is 

Level 4. The following are concepts related to disbursement of trust 

funds: 

(1) Transaction document should state how and when funds will be 

disbursed. Trust funds may not be used to pay for credit reports, 

surveys, appraisal fees, or other transaction expenses without the 

consent of all parties. 

(2) Access to trust funds should be limited and carefully controlled. 

(3) Disbursement in connection with “sales” transactions including 


(A) Upon revocation or rejection of an offer. (Note: a counteroffer 

is a rejection of the offer.) 

(B) The following upon termination (other than closing) of a 

transaction: 

(i) Where there is no dispute between the parties (seller and 

buyer). 

(ii) Where there is a dispute between the parties (seller and 

buyer). 

(C) The following upon closing of a transaction: 

(i) Where attorney or lending officer conducts the closing. 

(ii) Where broker conducts the closing. 

(D) Disbursement of earned brokerage fees. 

(4) Disbursement in connection with “rental” (“lease”) transactions 


(A) Rents should be promptly disbursed to property owner. 

(B) If so authorized by the property management agreement, 

broker-property managers may pay property operating expenses 

(utilities, repairs, maintenance, etc.) from rents received. 

(5) Earned brokerage fees should be promptly disbursed from the 

trust account to the broker's business or general operating account. 

Disbursement should be made within thirty (30) days of closing (in 

sales transactions) or receipt of rent (in rental transactions). 

(6) Trust account record keeping (bookkeeping) system must show 

(as a minimum) the following: 

(A) Date funds received. 

(B) Amount, nature, and purpose of funds and from whom 

received. 

(C) Date funds deposited. 

(D) Amount, date, and purpose of each withdrawal and to whom 

paid. 

(E) Current running balance. 

(7) Use of a record keeping system involving a general journal and 

individual ledgers is recommended. 

(8) Review records retention requirements of federal and state 

agencies with the following sources: 

(A) Indiana real estate commission. 

(B) Internal Revenue Service. 

(C) Indiana secretary of state. 

(D) Attorney. 

(E) Accountant. 

(g) Student should be required to work practice trust account record 

keeping problems during the course as well as on the final course 

examination. 




876070067RFA) 

Rule 14. Real Estate Finance 

876 IAC 2-14-1 Introduction to real estate finance 



Sec. 1. (a) The competency and instructional level for scope and 

purpose of real estate financing is Level 1. 

(b) The competency and instructional level for subdivision (1) is Level 


is Level 1. The following are concepts of historical development of real 

estate financing (an overview): 

(1) English and American mortgage concepts and practices including 


(A) Definitions of basic terms: mortgage, mortgagor/mortgagee, 

deed of trust, trustee, beneficiary, pledge, security, collateral, etc. 

(B) Title theory versus lien theory. 

(C) Right (equity) of redemption. 

(D) Foreclosure and statutory redemption period. 

(2) Predepression real estate financing. 

(3) The Depression era including the following: 

(A) General economic conditions and effect on real estate market 

(especially the housing market). 

(B) Government intervention as follows: 

(i) Federal Home Loan Bank. 

(ii) Home Owner's Loan Corporation. 

(iii) Federal Housing Administration (FHA). 

84

(iv) Federal Deposit Insurance Corporation (FDIC) and Federal 

Savings and Loan Insurance Corporation (FSLIC). 

(v) Federal National Mortgage Association (FNMA). 

(4) The post World War II period including the following: 

(A) Growth of the real estate market. 

(B) Role of the FHA and the Veterans Administration (VA). 

(5) The real estate boom of the 1970s: 

(A) Effect of the post World War II “baby boom” on demand for 

housing. 

(B) Effect of increase in the number of two (2) income families and 

the Equal Credit Opportunity Act (ECOA) on housing demand and 

ability to borrow. 

(C) Effect of inflation on the housing market. 

(D) Effect of disintermediation, savings and interest rate problems. 

(6) The early 1980s, current practices and trends including the 

following: 

(A) A period of instability and change. 

(B) New financing practices. 


(2) is Level 1. The following are concepts of real estate financing and the 

monetary system (an overview): 

(1) Financial markets, basic operation including the following: 

(A) The money market (short-term funds market). 

(B) The capital market (long-term funds market) as follows: 

(i) The mortgage market. (Note: covered in more depth under 


(ii) The bond and securities markets. 

(2) The role of the Federal Reserve System including the following: 

(A) Purpose. 

(B) Basic operation. 

(C) Effect of Federal Reserve policies on availability of mortgage 

funds and mortgage interest rates. 

(3) The role of the Federal Home Loan Bank board. 




876070067RFA) 

876 IAC 2-14-2 Sources of mortgage funds; primary mortgage 

market 




through (10) is Level 2. The following are concepts of direct sources, 

mortgage lenders (Explain the role of each in providing various types of 

mortgage loans on various types of properties.): 

(1) Savings and loan associations. (S&L's are the largest single 

source of mortgage funds, especially for residential loans.) 

(2) Commercial banks. 

(3) Mutual savings banks. 

(4) Mortgage companies (mortgage bankers) (usually originate loans 

with funds provided by other institutions, such as life insurance 

companies or parent banks, but some also originate loans with own 

funds). 

(5) Real estate investment trusts (REIT's). 

(6) Credit unions (federal and state). 

(7) Federal government agencies including the following: 

(A) Federal Land Bank (originally a government agency, but now 

owned by the system of local Federal Land Bank Associations, 

which are cooperative credit organizations). 

(B) Farmers Home Administration (FmHA). 

(8) State housing finance agencies. 

85 

(9) Mortgage brokers. (Actually, mortgage bankers are not “lenders”, 

but merely “intermediaries” who bring borrowers and lenders 

together and thus are involved in originating mortgage loans.) 

(10) Individual lenders, i.e., sellers. 


(6) is Level 2. The following are concepts of indirect sources (mortgage 

investors) (Explain the role of each in providi ng funds for mortgage loans 

on various types of properties.): 

(1) Life insurance companies. (Some direct loans made, but most 

are originated through mortgage companies, mortgage brokers, or 

other lenders using life insurance company funds. The lender “sells” 

mortgages to the life insurance company.) 

(2) Pension, trust, and endowment funds. 

(3) Charitable foundations. 

(4) Participants in the secondary mortgage market. (Covered in 

detail in section 3 of this rule.) 

(5) State and municipal bonds. 

(6) Individual investors (through purchase of mortgage-backed 

securities). 




876070067RFA) 

876 IAC 2-14-3 Secondary mortgage market 




through (4) is Level 2. The following are basic concepts of the secondary 

mortgage market operation: 

(1) Purposes. 

(2) Procedures (in general). 

(3) “Discounting” to adjust yield; “points”. 

(4) Advantages to investors, lenders, and borrowers. 


(3) is Level 2. The following are concepts of major participants in the 

secondary mortgage market (Explain the role of each and how each 

operates.): 

(1) Federal National Mortgage Association (FNMA or “Fannie Mae”). 

(2) Government National Mortgage Association (GNMA or “Ginnie 

Mae”). 

(3) Federal Home Loan Mortgages Corporation (FHLMC or “Freddie 

Mac”). 


(3) is Level 3. The following are concepts of private mortgage insurance: 

(1) Purposes. 

(2) Typical coverages and conditions. 

(3) Mortgage Guaranty Insurance Corporation (MGIC). 




19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 2-14-4 Financing instruments 




through (4) and (6) is Level 2. The competency and instructional level for 

subdivision (5) is Level 3. The following are concepts of the mortgage 

note: 


(2) Essential elements including the following: 

(A) Promise to pay a fixed sum. 

(B) Terms of payment.

(C) Signature of obligor (borrower). 

(3) Special note provisions including the following: 

(A) Acceleration clause. 

(B) Prepayment (penalty) clause. 

(C) Due-on-sale clause. 

(4) Negotiability of note. 

(5) Principal and interest (debt service) including the following: 

(A) Definitions. 

(B) Basic computations. 

(C) Use of amortization tables. (Note: students should be afforded 

considerable practice using amortization tables.) 

(D) Usury laws. 

(6) Payment (amortization) plans including the following: 

(A) Constant or level payment plan. 

(B) Variable (or adjustable) interest rate plan. 

(C) Graduated payment plan. 

(D) Balloon payment plan. 

(E) Term loan. 

(F) “Budget” plan. 


(3) is Level 2. (Use sample form for illustration.) The following are 

concepts of the mortgage instrument: 

(1) Distinction between a mortgage and deed of trust. 

(2) Parties to mortgages. 

(3) Essential elements including the following: 

(A) Must be in writing (statute of frauds). 

(B) Mortgagor-owner must have contractual capacity. 

(C) Mortgagor-owner must have a valid interest in the property. 

(D) A valid debt (to be secured by the mortgage) must exist. 

(E) Valid legal description of property. 

(F) Mortgaging clause. 

(G) Mortgagor's/owner's signature. 

(H) Delivery and acceptance. 


(2) is Level 2. The following are concepts of rights of mortgage lenders: 

(1) Right to foreclosure including the following: 

(A) Foreclosure methods. 

(B) Power of sale (nonjudicial). 

(C) Strict. 

(2) Right to transfer (assign) the mortgage. 


(2) is Level 2. The following are concepts of rights of borrowers: 

(1) Right to possession. 

(2) Right (equity) of redemption. 


(3) is Level 3. The following are concepts of sales of mortgaged property 

(Explain procedures and legal effect of each of the sales below.): 

(1) Cash sale (existing mortgage paid off and new mortgage 

obtained, if necessary). 

(2) Sale with assumption of existing mortgage; release of liability and 

restoration of benefits on VA mortgage. 

(3) Sale subject to existing mortgage. 


(2) is Level 2. The following are concepts of mortgage priorities: 

(1) Effect and importance of recordation. 

(2) Subordination of mortgages. 




876070067RFA) 

876 IAC 2-14-5 Types of mortgage loans; financing methods 



86 


through (3) is Level 3. The following are concepts of major types of 

mortgage loans (Cover basic definitions; characteristics and uses; the 

major types of payment plans in common use; the major loan programs 

(for FHA and VA mortgages); and basic qualification requirements for 

various types of loans. Use examples extensively.): 

(1) Conventional. 

(2) Federal Housing Administration (FHA). 

(3) Veterans Administration. 


(12) is Level 3. The following are concepts of other types of financing 

methods (Cover basic definitions, characteristics, and uses. Use 

examples.): 

(1) Purchase money. 

(2) Farmers Home Administration (FmHA). 

(3) Development. 

(4) Construction. 

(5) Bridge or interim. 

(6) Open end. 

(7) Blanket. 

(8) Package. 

(9) Equity participation (shared appreciation). 

(10) Reverse annuity. 

(11) Leasehold. 

(12) Wraparound. 


(4) is Level 2. The following are concepts of special financing methods: 

(1) Installment land contract. 

(2) Sale; leaseback. 

(3) Ground lease. 

(4) Syndication. 




19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 2-14-6 Residential loan underwriting 



Sec. 6. (a) The competency and instructional level for initial interview 

and loan application is Level 3. (Note: the applicability of the underwriting 

procedures listed below to all three (3) major types of residential loans 

(conventional, FHA, and VA) should be discussed in some depth.) 


(4) is Level 3. The following are concepts of borrower analysis: 

(1) Credit characteristics (history). 

(2) Adequacy of assets (to close the transaction). 

(3) Stability of income (employment). 

(4) Adequacy of income. (Students should be afforded extensive 

practice in applying these ratios. Acceptable income/expense ratios.) 


(2) is Level 3. The following are concepts of property analysis: 

(1) Appraisal (determination of market value). (Note: The subject of 

property valuation (appraisal) is covered separately in section 10 of 

this rule.) 

(2) Status of title (title examination). 


(4) is Level 3. The following are concepts of loan analysis: 

(1) Loan-to-value ratio. (Students should be able to perform basic 

calculations.) 

(2) Interest rate/discount points. (Students should be able to 

compute “yield” and dollar amount of points.) 

(3) Loan term. 

(4) Availability of mortgage insurance (or guaranty).

(e) The competency and instructional level for underwriting decision 

and loan commitment is Level 3 (including firm, conditional, and takeout 

commitments). 




19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 2-14-7 Income property loan underwriting 




through (4) is Level 1. The following are concepts of income loan 

underwriting for existing property (project); factors examined: 

(1) Borrower's credit history. 

(2) Financial statements of the property (project); profitability. 

(3) Property type, characteristics, and value. 

(4) Loan terms. 

(b) The competency and instructional level for new or proposed 

property (project) is Level 1. (Generally the same factors are examined 

as for an existing property except that financial statements are not 

available; thus, lenders rely on information obtained through a 

comprehensive market/economic feasibility study in making their 

decision.) 




876070067RFA) 

876 IAC 2-14-8 Consumer legislation affecting real estate financing 




through (4) is Level 2. The following are concepts of the Truth-in-Lending 

Act and Truth-in-Lending Simplification and Reform Act of 1980 (effective 

October 1, 1982); also “Regulation Z” of the Federal Reserve Board 

which implements truth-in-lending laws: 


(2) Disclosure of credit information including the following: 

(A) Chief disclosures: annual percentage rate (APR), finance 

charge, amount financed, and total of payments. 

(B) Other disclosures: payment schedule, “demand feature” (if 

any), variable interest rate (if applicable), prepayment penalties, 

late payment charges, credit insurance, loan assumption policy, 

and required escrow deposits (for taxes and insurance). 

(C) Timing of disclosures. 

(3) Applicability to “arrangers of credit”. (Note: Real estate brokers in 

arranging seller financing are not considered “arrangers of credit” 

under the current federal regulations.) 

(4) Disclosure of credit terms in advertising the sale of real estate. 

(General rule: If any specific credit terms are included in the 

advertisement, then all credit terms, i.e., APR, down payment, 

repayment terms, must also be included. This requirement applies to 

real estate brokers as well as others advertising real estate for sale.) 


(2) is Level 1. The following are concepts of the Equal Credit Opportunity 

Act (implemented by Regulation B of the Federal Reserve Board): 


(2) Basic provisions and requirements: prohibits creditors from 

discriminating against credit applicants based on the applicant's 

race, color, religion, national origin, sex, marital status, age, or 

certain other secondary characteristics. 



87 


876070067RFA) 

876 IAC 2-14-9 Real property valuation; appraisal 




through (5) is Level 3. The following are basic appraisal concepts: 

(1) Definition of “appraisal” including the following: 

(A) Who can perform? 

(B) Liability. 

(2) Valuation versus evaluation including the following: 

(A) Valuation-market value estimate. 

(B) Evaluation as follows: 

(i) Economic feasibility study. 

(ii) Land utilization study. 

(3) Concepts of value including the following: 

(A) Value in use. 

(B) Value in exchange. 

(C) “Value” versus “cost” and “price”. 

(D) Kinds of property value (based on use of the value estimate) 

as follows: 

(i) Market value. 

(ii) Loan value. 

(iii) Assessed value. 

(iv) Insured value. 

(v) Book value. 

(4) Forces and factors influencing property value including the 

following: 

(A) Social ideas and standards. 

(B) Economic forces. 

(C) Government activities. 

(D) Physical or environmental forces. 

(5) Basic economic principles of value including the following: 

(A) Supply and demand. 

(B) Anticipation. 

(C) Substitution. 

(D) Conformity. 

(E) Contribution. 

(F) Competition. 

(G) Change. 

(H) Highest and best use. (Use example for illustration.) 

(b) Due to the complexity pertaining to approaches to value (appraisal 

methods) the competency and instructional level for subdivisions (1) 

through (4) are noted separately in each subdivision. The following are 

concepts of approaches to value: 

(1) Market data approach including the following (also called direct 

sales comparison approach) (Level 4 students should be afforded 

practice in the use of this approach for estimating the value of 

residential properties.): 


(B) Procedures as follows: 

(i) Find recently sold comparable properties (“comparables”) as 

follows: 

(AA) A minimum of three (3) or four (4) is preferable. 

(BB) Sources include MLS records, other brokers, broker's 

own records, sellers, recorded deeds, tax records. 

(ii) Identify and analyze sales and property data as follows: 

(AA) Sales data includes sale price, terms of sale, and date of 

sale. 

(BB) Property data includes location, size, type, and quality of 

construction, age, condition, and all other major property 

characteristics.

(iii) Adjust the sale prices of comparables to reflect differences 

between them and the subject property with respect to property 

and sales data. 

(iv) Correlate the adjusted sale prices of comparables to derive 

estimate of value for subject property. 

(2) Cost approach including the following (Level 3 except as 

indicated below): 


(B) Estimate of land (lot) value. (Determine by using market data 

approach.) 

(C) Estimating building costs as follows: 

(i) Reproduction cost versus replacement cost. 

(ii) Methods of estimating reproduction or replacement cost as 

follows (Level 1: subitems (AA),(BB),(DD); Level 3: subitems 

(CC) and (EE)): 

(AA) Quantity survey method (most complex and most 

accurate method). 

(BB) Unit-in-place method. 

(CC) Square foot (comparative) method (simplest and most 

widely used method by appraisers). 

(DD) Use of construction cost services (published estimates of 

building costs). 

(EE) Market abstraction method (same concept as used with 

market data approach; new, recently sold properties are 

used). 

(iii) Depreciation as follows (Level 2 except as noted): 

(AA) Definition and basic concepts, such as “effective age” 

and “effective life”. 

(BB) Depreciation methods as follows: Age/life (straight-line) 

method (Level 3); market abstraction method; breakdown 

method: physical deterioration (curable and incurable), 

functional obsolescence (curable and incurable), economic 

obsolescence (incurable only). 

(D) Formulating the opinion of value (estimated 

reproduction/replacement cost less (-) estimated depreciation plus 

(+) estimated value of land equals (=) indication of value). 

(3) Income approach including the following (Level 3 except as noted 

below): 


(B) Gross rent multiplier (GRM) method as follows: 

(i) Obtain sales price and gross income (rent) data on recently 

sold similar (comparable) properties. (Also record property and 

other sales data for comparative purposes.) 

(ii) Derive gross rent multiplier for each comparable (sales price 

divided by gross income equals gross rent multiplier). 

(iii) Correlate data to determine appropriate gross rent multiplier. 

(iv) Derive estimate of subject property's value (gross rent 

multiplier multiplied by gross income of subject equals indicated 

value of subject). 

(C) Capitalization of income method as follows: 

(i) Estimate gross income based on “market rent”. 

(ii) Derive net operating income estimate by deducting projected 

vacancy and collection losses and operating expenses from 

gross income projection. (Note: Operating expenses include 

items such as property taxes, property insurance, maintenance 

and repair, management salaries, commissions, and 

replacement reserve. Items such as book depreciation, debt 

service, and capital improvements are not operating expenses.) 

(iii) Derive capitalization rate by either subitem (AA) or (BB) as 

follows: 

(AA) Market abstraction. (Sales concept as used with market 

data approach and GRM method. This is most commonly 

used method.) 

88 

(BB) Other methods such as “band of investment method”, 

“build-up method”, or “mortgage equity method”. (These are 

beyond the scope of this course. Mention only, do not cover.) 

(iv) Derive estimate of property value (value equals net 

operating income divided by capitalization rate). 

(v) Discounted cash flow analysis. (Also called “present value 

analysis” may be used in connection with the capitalization of 

income, i.e., rentals from leases to be received at some future 

time.) (Use present value tables in connection with examples 

and problems on this topic.) 

(4) Reconciliation of the three (3) approaches to value including the 

following: 

(A) Assign appropriate “weight” to value indicated by each 

approach according to the reliability of each approach for the 

particular subject property. 

(B) Derive final conclusion (estimate) of value. 




19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 2-14-10 Real estate finance and appraisal mathematics 




finance and appraisal mathematics is Level 2. This section is included 

only for the purpose of listing in one (1) place the types of applied real 

estate finance and related mathematics calculations which students 

should master in this course. As a practical matter, it will be necessary to 

cover most of these various mathematics calculations at various points 

during the course. It is not feasible to cover all real estate finance and 

related mathematics required in the course as a separate subject area, 

although instructors may wish to have a “review” on real estate finance 

mathematics near the end of the course. 

(b) It should be noted that the mathematics listed below is applied real 

estate finance and related mathematics. This course outline does not 

provide for instruction in basic mathematics concepts such as addition, 

subtraction, multiplication, division, decimals, fractions, or percentages. It 

is presumed that entering students possess these elementary 

mathematics skills. Should it be necessary to provide students with 

remedial instruction in basic mathematics, schools must include 

additional time for such instruction over and above the minimum time 

required for this course. 







(d) The following are concepts of applied real estate finance and 

related mathematics calculations: 

(1) Financial calculations including the following: 

(A) Simple interest (how to compute monthly interest and amount 

of interest paid over life of a fixed-rate loan). 

(B) Debt service/mortgage debt reduction (how to use amortization 

tables and how to compute principal balance for a point in time, 

given previous principal balance, monthly payment, and interest 

rate, without amortization tables). 

(C) Loan origination fees and discount points. 

(D) Loan value (applying loan-to-value ratios). 

(E) Yields on mortgage loans (including loans involving discount 

points and wraparound mortgages). 

(F) Qualifying a buyer. 

(2) Appraisal mathematics including the following:

(A) Calculations involved with market data approach as follows: 

(i) Adjustments to sale prices of comparables. 

(ii) Calculating estimate of value. 

(B) Calculations involved with cost approach as follows: 

(i) Determining cost per square foot. 

(ii) Calculating depreciation by straight-line method. 

(iii) Calculating estimate of value. 

(C) Calculations involved with income approach as follows: 

(i) Determining and applying gross rent multiplier. 

(ii) Deriving net operating expenses. 

(iii) Capitalization of income (calculating estimate of value). 

(iv) Computing present value (discounted cash flow analysis). 




19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

Rule 15. Real Estate Broker Course; Required Instructional 

Materials 

876 IAC 2-15-1 Required instructional materials 



Sec. 1. (a) The Indiana real estate license law booklet, which is 

available without charge from the Indiana real estate commission, is 

required instructional material for the real estate broker course. 

(b) Schools may also use such other textbooks and materials for 

instructional purposes that are appropriate and useful in teaching the 

broker curriculum provided for in 876 IAC 2-10 through 876 IAC 2-14. 


5:00 p.m.: 13 IR 673; filed Jul 25, 1991, 3:30 p.m.: 14 IR 2257; filed Jun 

30, 1999, 2:41 p.m.: 22 IR 3418; readopted filed Jun 29, 2001, 9:56 a.m.: 

24 IR 3824; readopted filed Jul 19, 2007, 12:57 p.m.: 20070808-IR- 

876070067RFA) 

876 IAC 2-15-2 Approved textbooks (Repealed) 


1991, 3:30 p.m.: 14 IR 2257) 

876 IAC 2-15-3 Resource and supplemental course materials 

(Repealed) 


1991, 3:30 p.m.: 14 IR 2257) 

Rule 16. Licensure; Miscellaneous Educational and Experience 

Provisions 

876 IAC 2-16-1 Broker license; experience requirement and waiver 


Affected: IC 25-34.1-3-4.1; IC 25-34.1-9-19 

Sec. 1. (a) Referral status under IC 25-34.1-9-19(2) does not qualify as 

accrued continuous active experience as a licensed salesperson as 

required under IC 25-34.1-3-4.1(a)(2). 

(b) To qualify for a waiver of the requirement under IC 25-34.1-3- 

4.1(a)(2) of one (1) year experience immediately preceding the 

application as a licensed salesperson in Indiana, an applicant for a 

broker license must have at least two (2) years of experience within the 

previous five (5) years as a salesperson or broker in Indiana or any other 

state requiring licensure. 




filed May 27, 2003, 11:00 a.m.: 26 IR 3342) 

876 IAC 2-16-2 Real estate school instructors; education 

requirement for licensure 


Affected: IC 25-34.1-3-3.1; IC 25-34.1-3-4.1 

Sec. 2. (a) An individual who has taught a broker course approved 

under this article, and who subsequently applies for a broker license shall 

be deemed to have successfully completed the course under IC 25-34.1- 

3-4.1. 

(b) An individual who has taught a salesperson course approved under 

this article, and who subsequently applies for a salesperson license shall 

be deemed to have successfully completed the course under IC 25-34.1- 

3-3.1. 

(c) The one (1) year limitation contained in 876 IAC 2-17-1(c) applies to 

the completion of the broker or salesperson course under subsections (a) 

through (b). 





Rule 17. Examinations 

876 IAC 2-17-1 Requirements for admission to examination 


Affected: IC 25-34.1-3-3.1; IC 25-34.1-3-4.1 

Sec. 1. (a) Prior to sitting for the salesperson examination, an applicant 

for a salesperson license must have completed the educational 

requirements established by IC 25-34.1-3-3.1(a)(2) and this article. 

(b) Prior to sitting for the broker examination an applicant for a broker 

license must have completed the educational requirements established 

by IC 25-34.1-3-4.1(a)(3) and this article. 

(c) An applicant who does not pass the applicable examination within 

one (1) year of completion of the salesperson or broker course must 

again comply with the educational requirements established by IC 25- 

34.1-3-3.1(a)(2) or IC 25-34.1-3-4.1(a)(3) and this article before being 

entitled to any further taking of the examination. This subsection does not 

apply to an applicant for a salesperson license who met the educational 

requirements by successful completion of college or university courses in 

the principles, practices, and law of real estate as provided for in IC 25- 

34.1-3-3.1(a)(2). 

(d) Notwithstanding subsection (c), an applicant who completed the 

salesperson or broker course before January 1, 1989, has until 

December 31, 1989, to pass the examination without having to again 

comply with the educational requirements. 



p.m.: 12 IR 1209; errata filed May 15, 1989, 2:20 p.m.: 12 IR 1907; 


19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 2-17-2 Application for examination; fee 

Authority: IC 25-1-8-2; IC 25-34.1-2-5 

Affected: IC 25-34.1-3-3.1; IC 25-34.1-3-4.1 

Sec. 2. Applicants for licensure as a broker or salesperson who have 

completed all requirements for licensure except passing the applicable 

examination may take the examination upon payment of the applicant's 

cost of purchasing the examination, payable to the examination service. 



p.m.: 12 IR 1209; filed Oct 23, 1990, 1:48 p.m.: 14 IR 450; filed Dec 6, 

1994, 4:57 p.m.: 18 IR 1285; filed Jun 21, 1996, 10:00 a.m.: 19 IR 3111; 


19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

89

876 IAC 2-17-3 Examinations; passing score 


Affected: IC 25-34.1-3-3.1; IC 25-34.1-3-4.1 

Sec. 3. (a) The broker and salesperson examinations shall be 

standardized examinations for the testing of real estate brokers and 

salespersons. The examination required of all applicants for licensure as 

a broker or salesperson shall be divided into the following two (2) 

sections: 

(1) General real estate practices. 

(2) Indiana licensure law. 

(b) Applicants for licensure by reciprocity shall only be required to take 

and pass the Indiana licensure section of the broker or salesperson 

exam, whichever is applicable. 

(c) The examination will be electronically administered by the 

commission’s duly appointed agent. However, individuals who are unable 

to take the electronically administered examination because of a 

disability may apply to take it on paper. 

(d) An applicant shall be deemed to have passed the examination upon 

attaining a score of at least seventy-five percent (75%) on each section. 

(e) If the applicant passes one (1) section of the examination, the 

applicant is credited for the section the applicant has passed and is not 

required to retake the section of the examination unless the applicant is 

retaking the examination after having to again comply with the education 

requirement in section 1(c) of this rule. 



p.m.: 12 IR 1209; filed Dec 6, 1994, 4:57 p.m.: 18 IR 1286; readopted 

filed Jun 29, 2001, 9:56 a.m.: 24 IR 3824; filed Aug 15, 2001, 9:50 a.m.: 

25 IR 102, eff Oct 1, 2001; readopted filed Jul 19, 2007, 12:57 p.m.: 

20070808-IR-876070067RFA) 

Rule 18. Fee Schedule 

876 IAC 2-18-1 Fee schedule 

Authority: IC 25-1-8-2; IC 25-34.1-2-5; IC 25-34.1-2-6 

Affected: IC 25-34.1-3-3.1; IC 25-34.1-3-4.1; IC 25-34.1-8-7.5 

Sec. 1. In addition to the fees required under IC 25-34.1-3-3.1 and IC 

25-34.1-3-4.1, the commission shall charge and collect the following 

fees, which shall be nonrefundable and nontransferable, for the 

investigative fund under IC 25-34.1-8-7.5 for the issuance and renewal of 

a: 

(1) Real estate salesperson license $10 

(2) Real estate broker license $10 

(Indiana Real Estate Commission; 876 IAC 2-18-1; filed Aug 12, 2004, 

10:12 a.m.: 28 IR 213, eff Oct 1, 2004) 

ARTICLE 4. REAL ESTATE CONTINUING EDUCATION 

Rule 1. Sponsors of Courses; Approval 

876 IAC 4-1-1 Sponsors; approval 



Sec. 1. (a) Credit for fulfillment of the continuing education requirement 

will be granted only to licensees who have successfully completed 

courses offered by sponsors approved by the commission. 

(b) Continuing education course sponsor approval may be granted by 

the commission upon application to those schools offering approved 

broker or salesperson courses under IC 25-34.1-5 or to schools only 

offering continuing education courses. 



90 


876070067RFA) 

876 IAC 4-1-2 Application for sponsor of continuing education 

courses 



Sec. 2. (a) Applicants for sponsor approval who do not conduct 

salesperson or broker courses under IC 25-34.1-5 shall submit the 

following information: 

(1) Name, address, telephone number, and facsimile (FAX) number 

(if any) of the sponsor. 

(2) Name, address, and resume of the school director responsible for 

real estate administrative matters such as the following: 

(A) Program development. 

(B) Scheduling of classes. 

(C) Advertising. 

(D) Maintaining facilities and equipment. 

(E) Record keeping. 

(F) General supervision of the instructional program. 

(3) If the ownership of the sponsor is a partnership, the names and 

addresses of the partners. 

(4) If the ownership of the sponsor is a corporation, the names and 

addresses of the officers and directors. 

(5) If the ownership of the sponsor is a limited liability company, the 

names and addresses of the members and managers. 

(b) All applicants for continuing education course sponsorship approval 

shall submit the following: 

(1) A course content outline describing the subjects to be offered 

during the approval period. 

(2) Name, address, resume of course instructors, and a statement 

that each instructor meets the qualifications required by section 8 of 

this rule. 

(3) A statement that the sponsor shall provide the licensee who 

successfully completes an approved course, a certificate of course 

completion indicating the following: 

(A) Name, address, and signature of the sponsor. 

(B) Name, address, and license number of the attendee. 

(C) Title of the course. 

(D) Course location. 

(E) Date of the course. 

(F) Number of continuing education credit hours completed. 

(4) A statement that the sponsor shall conduct an instructor and 

course evaluation and that they shall be provided to the commission 

upon request. 

(5) Application fee in the amount of fifty dollars ($50). 




876070067RFA) 

876 IAC 4-1-3 Significant changes 



Sec. 3. (a) Any significant changes in the operation of the approved 

sponsor must be approved by the commission prior to the effective date 

of the change. Any change in the course outline must be approved by the 

commission prior to the course being offered or given. The commission 

shall review the changes to determine whether or not the sponsor shall 

continue to be approved. 

(b) Significant changes shall include the following: 

(1) Change in ownership of the sponsor, including changes in the 

officers and directors of the corporation. 

(2) A new school director.

(3) A new instructor. 

(4) Any change in course outline. 

(c) Once a continuing education instructor and course outline have 

been approved through the continuing education sponsor, the instructor 

and the course outline are approved for all continuing education 

sponsors. It shall be the responsibility of the continuing education 

sponsor to ensure that the commission has previously approved the 

course outline. 

(d) Notwithstanding subsection (b)(3), an instructor who has already 

been approved under this section or section 2 of this rule for another 

approved sponsor shall not be considered a new instructor. 


10:30 a.m.: 17 IR 766; filed Jun 14, 1995, 11:00 a.m.: 18 IR 2790; 

readopted filed Jun 29, 2001, 9:56 a.m.: 24 IR 3824; filed Aug 15, 2001, 

9:50 a.m.: 25 IR 103; filed Oct 28, 2002, 12:01 p.m.: 26 IR 791; 


876 IAC 4-1-4 Course availability 



Sec. 4. All continuing education courses shall be available to all 

licensees; however, a course may be limited to brokers or salespersons 

only. 




876070067RFA) 

876 IAC 4-1-5 Sponsor renewal 


Affected: IC 25-34.1-9-14 

Sec. 5. (a) Under IC 25-34.1-9-14(a), a sponsor of a salesperson level 

continuing education course shall submit by December 1 of each oddnumbered 

year the following information to request approval renewal: 

(1) A letter requesting such renewal. 

(2) A renewal fee of fifty dollars ($50). 

(b) Under IC 25-34.1-9-14(b), a sponsor of broker level continuing 

education courses shall submit by December 1 of each even-numbered 

year the following information to obtain approval renewal: 

(1) A letter requesting such renewal. 

(2) A renewal fee of fifty dollars ($50). 




876070067RFA) 

876 IAC 4-1-6 Facilities 



Sec. 6. (a) No course shall be conducted in a facility that is also used 

as a broker or salesperson office, except for an approved distance 

learning continuing education program. 

(b) Courses shall be taught in a facility with adequate: 

(1) space; 

(2) seating; 

(3) equipment; and 

(4) instructional material; 

to accommodate the number of students enrolled. 

(c) The premises, equipment, and facilities shall comply with all: 

(1) local; 

(2) city; 

(3) county; 

(4) state; and 

(5) federal; 

91 

regulations, such as fire, building, and sanitation codes and handicap 

accessibility. 

(d) Any facility previously approved for broker or salesperson courses 

under IC 25-34.1-5 shall be deemed satisfactory. 



3824; filed Mar 2, 2006, 4:10 p.m.: 29 IR 2198, errata filed Mar 7, 2006, 


20070808-IR-876070067RFA) 

876 IAC 4-1-7 School directors 



Sec. 7. (a) Each continuing education course sponsor, upon 

application for continuing education course sponsor approval, shall 

designate one (1) individual as its school director. 

(b) A continuing education course sponsor is prohibited from hiring or 

retaining in its employ, a school director who: 

(1) has had real estate license revoked or suspended by any 

jurisdiction; 


individual's ability to competently be a school director, including, but 

not necessarily limited to, violations of real estate laws and abuse of 

fiduciary responsibilities; or 

(3) unless authorized by law, refused to appear or testify under oath 

at any hearing held by the commission. 

(c) The designated school director must satisfy one (1) of the following 

qualification standards: 

(1) Hold a bachelor's degree in education, real estate, or business. 

(2) Have at least two (2) years experience within the past ten (10) 

years as an instructor or school administrator. 

(d) School directors employed under IC 25-34.1-5 before January 1, 

1989, are exempt from the requirements of subsection (c). 




876070067RFA) 

876 IAC 4-1-8 Instructors; qualifications 



Sec. 8. (a) Continuing education course sponsors shall affirm, upon 

application for continuing education course sponsor approval, that the 

course instructors shall possess at least one (1) of the following minimum 

qualifications: 

(1) An instructor of real estate courses who is or has been engaged 

in the practice of teaching at an accredited institution of higher 

education. 

(2) An instructor for a broker or salesperson course approved under 

IC 25-34.1-5. 

(3) Possession of a bachelor's degree from a college or university in 

a related field to that in which the person is to teach or a comparable 

degree from a school of a foreign country. 

(4) Five (5) years full-time experience in a profession, trade, or 

technical occupation in the real estate field. 

(5) A combination of a total of five (5) years of: 

(A) full-time experience relevant to the real estate field; and 

(B) a college level education. 

The combination may include no more than three (3) years of such 

education. 

(6) Member of the state bar of Indiana who is engaged in the field of 

real estate related law.

(b) An instructor whose professional license or certification has been 

limited, suspended, or revoked in any jurisdiction may not instruct in 

approved programs while the disciplinary action is in effect. 

(c) Any substitute instructor shall meet the qualifications of this section. 




876070067RFA) 

876 IAC 4-1-9 Sponsor approval date 



Sec. 9. Sponsors of both salesperson or broker continuing education 

courses shall be considered approved as of the date of approval by the 

commission, and therefore courses predating the approval date do not 

qualify. 




876070067RFA) 

876 IAC 4-1-10 Course outline 



Sec. 10. A course outline shall be prepared and distributed to the 

attendees. The outline shall state the number of continuing education 

hours offered. 




876070067RFA) 

876 IAC 4-1-11 Record retention 



Sec. 11. (a) The sponsor shall retain a record of attendance for all 

courses showing date, place, and attendee's name. This record must be 

signed by the instructor. 

(b) The sponsor shall maintain for five (5) years the course records 

required by subsection (a) and section 2(b)(1) through 2(b)(3) of this rule. 

(c) The sponsor may be asked to provide to the commission copies of 

records required by subsections (a) and (b), section 2(b)(1) through 

2(b)(3) of this rule, and section 10 of this rule. 




876070067RFA) 

Rule 2. Course Requirements 

876 IAC 4-2-1 Continuing education requirements 


Affected: IC 25-34.1-3-10; IC 25-34.1-9-11; IC 25-34.1-9-19 

Sec. 1. (a) Every licensed real estate broker and salesperson who has 

not been granted: 

(1) an inactive license under IC 25-34.1-3-10; or 

(2) a waiver under IC 25-34.1-9-19; 

must complete during each two (2) year licensure period at least sixteen 

(16) hours of the approved education requirements under IC 25-34.1-9- 

11 and this article that are given by commission-approved sponsors of 

courses in order to qualify for license renewal. 

(b) Licensees attending continuing education courses shall present a: 

(1) government-issued photo identification; and 

(2) real estate broker or salesperson pocket card; 

92 

for inspection by the course sponsor or a person designated by the 

course sponsor. 

(c) Measurements and reporting shall be in full hours with a fifty (50) 

minute instruction period equaling one (1) hour. 

(d) A course shall be a minimum of a two (2) hour instruction period. 

(e) A minimum of two (2) hours and not more than eight (8) hours of 

instruction may be offered in a one (1) day course. However, instruction 

for an approved distance learning continuing education program may be 

more than eight (8) hours of instruction in a one (1) day course. 

(f) A licensee shall not be entitled to any continuing education credit for 

a course unless the licensee completes the entire course. 

(g) There shall be no minimum requirement of numbers of credit hours 

to be completed in each single year of the two (2) year licensure period. 

(h) Any continuing education credit accumulated above the minimum 

requirement for a two (2) year licensure period shall not be carried 

forward to the next two (2) year licensure period. 

(i) A licensee who attends the same approved continuing education 

course more than once in the same two (2) year licensure period is only 

entitled to continuing education credit for one (1) course. 

(j) An instructor shall be entitled to continuing education credit for 

courses the instructor teaches. However, an instructor may not: 

(1) be credited for more than six (6) hours of credit for instructing in 

any two (2) year licensure period; or 

(2) receive credit for repeated courses. 



3824; filed Aug 15, 2001, 9:50 a.m.: 25 IR 103; filed Mar 2, 2006, 4:10 

p.m.: 29 IR 2198, errata filed Mar 7, 2006, 9:50 a.m.: 29 IR 2203; 


876 IAC 4-2-2 Curricula for salesperson under IC 25-34.1-9-11(a)(1) 


Affected: IC 25-34.1-9-11 

Sec. 2. (a) This section establishes the six (6) hour continuing 

education requirement under IC 25-34.1-9-11(a)(1) for salespersons. 

(b) To qualify for license renewal, salespersons must have two (2) 

hours of continuing education instruction in three (3) of the following: 

(1) Indiana licensure and escrow law. 

(2) Indiana agency law. 

(3) Fair housing and civil rights law. 

(4) Listing contracts and purchase agreements. 

(5) Settlement procedures. 

(6) Antitrust. 

(7) Environmental issues. 

(8) Ethics and standards. 


10:30 a.m.: 17 IR 768; filed Jun 21, 1996, 10:00 a.m.: 19 IR 3112; 

readopted filed Jun 29, 2001, 9:56 a.m.: 24 IR 3824; filed Nov 4, 2002, 


20070808-IR-876070067RFA) 

876 IAC 4-2-3 Curricula for brokers under IC 25-34.1-9-11(a)(1) 


Affected: IC 25-34.1-9-11 

Sec. 3. (a) This section establishes the six (6) hour continuing 

education requirement under IC 25-34.1-9-11(a)(1) for brokers. 

(b) To qualify for license renewal, brokers must have two (2) hours of 

continuing education instruction in three (3) of the following: 

(1) Indiana licensure and escrow law. 

(2) Indiana agency law. 

(3) Fair housing and civil rights law. 

(4) Listing contracts and purchase agreements. 

(5) Settlement procedures. 

(6) Antitrust.

(7) Environmental issues. 

(8) Ethics and standards. 


10:30 a.m.: 17 IR 768; filed Jun 21, 1996, 10:00 a.m.: 19 IR 3112, eff Jan 

1, 1997; readopted filed Jun 29, 2001, 9:56 a.m.: 24 IR 3824; filed Nov 4, 

2002, 11:42 a.m.: 26 IR 788; readopted filed Jul 19, 2007, 12:57 p.m.: 

20070808-IR-876070067RFA) 

876 IAC 4-2-3.5 Outline for curricula for salespersons and brokers 

under IC 25-34.1-9-11(a)(1) 


Affected: IC 25-34.1-9-11 

Sec. 3.5. (a) Except as allowed by subsection (b), the subject areas 

required in sections 2 and 3 of this rule shall be taught under the 

following recommended outlines: 

(1) The following under the Indiana licensure and escrow law: 

(A) Purpose and basic provisions of licensing statutes and 

administrative rules. 

(B) Real estate broker and salesperson licensure requirements. 

(C) Educational requirements. 

(D) Enforcement of statutes and rules. 

(E) Seller agency. 

(F) Buyer agency. 

(G) Limited agency. 

(H) Disclosure issues. 

(I) Unlicensed assistants. 

(J) Current topics of importance. 

(2) The following under the agency law: 

(A) General agency law. 

(B) Agency relationships, including agent’s duty to the following: 

(i) Principal. 

(ii) Third parties. 

(C) Creation of an agency. 

(D) Enforcement of agency, including the following: 

(i) Intentional misrepresentation. 


(iii) Fraud. 

(E) Liabilities and consequences of breach of duties, including the 

following: 

(i) Disciplinary action by the Indiana real estate commission. 

(ii) Civil liability. 

(iii) Criminal liability. 

(F) Seller agency. 

(G) Buyer agency. 

(H) Limited agency. 

(3) The following under the fair housing and civil rights laws: 

(A) Historical context of legislation. 

(B) Discriminatory acts and penalties, including the following: 

(i) Theories of discrimination. 

(ii) Items of specific prohibition. 

(iii) Definitions. 

(C) Exemptions. 

(D) Enforcement. 

(E) Testing for compliance. 

(F) Advertising. 

(G) Protected classes. 

(H) Record keeping. 

(I) Fair housing procedures. 

(4) The following under the listing contracts and purchase 

agreements: 

(A) Basic contract law. 

(B) Statute of frauds. 

(C) Indiana license law. 

(D) Essential elements of a contract. 

93 

(E) Enforcement and defenses to enforcement of contracts. 

(F) Listing contracts, including the following: 

(i) Types. 

(ii) Seller disclosure. 

(iii) Duties and responsibilities of both parties. 

(iv) Extension/protection clause. 

(G) Purchase agreement, including the following: 

(i) Duties and responsibilities of both parties. 

(ii) Contingencies. 

(iii) Real property and personal property issues. 

(5) The following under the settlement procedures: 

(A) Principles and sources of contract law. 

(B) Contract terms and definitions. 

(C) Contract essentials. 

(D) Legal objective. 

(E) Performance and nonperformance. 

(F) Sources of contract law. 

(G) Listing contract and purchase agreements. 

(H) Agent’s role in closing, including the following: 

(i) Financing. 

(ii) Inspections. 

(iii) Environmental. 

(iv) Insurance. 

(v) Appraisal and survey. 

(vi) Title. 

(vii) Closing and possession. 

(I) Escrow deposits and disbursement. 

(J) Controlling problems. 

(6) The following under antitrust laws: 

(A) Sherman Act. 

(B) Clayton Act. 

(C) Federal Trade Commission. 

(D) Indiana act. 

(E) Penalties for antitrust violations. 

(F) Potential violations with clients and customers. 

(G) Potential violations with competitors. 

(H) Potential violations with providers and other organizations. 

(I) Enforcement. 

(J) Compliance policies. 

(7) The following under environmental issues: 

(A) Historical perspective. 

(B) Federal environmental laws. 

(C) Indiana environmental laws, including the following: 

(i) Insecticide and pesticide. 

(ii) Wells. 

(iii) Water quality. 

(iv) Sewage disposal systems. 

(v) Radon. 

(vi) Asbestos. 

(vii) Lead. 

(viii) Storage tanks. 

(ix) Electric and magnetic fields. 

(x) Wet lands. 

(xi) Mold and other biological contaminants. 

(8) The following under ethics and standards: 

(A) Ethics, standards, regulations, and laws. 

(B) Business versus personal ethics. 

(C) Ethical considerations, including the following: 

(i) Management. 

(ii) Record keeping. 

(iii) Confidentiality. 

(D) Standards discussions. 

(E) Duties and responsibilities of parties involved. 

(F) Mediation.

(G) Arbitration. 

(H) Litigation with regulations. 

(b) As an alternative to following the outlines in subsection (a), the 

subject areas required in sections 2 and 3 of this rule may be taught 

under outlines substantially similar under subsection (a). 

(Indiana Real Estate Commission; 876 IAC 4-2-3.5; filed May 27, 2003, 

11:01 a.m.: 26 IR 3342, eff Jan 1, 2004; readopted filed Jul 19, 2007, 

12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 4-2-4 Curricula under IC 25-34.1-9-11(2) 


Affected: IC 25-34.1-9-11 

Sec. 4. In addition to the subjects listed in IC 25-34.1-9-11(2), the 

following course subjects shall be allowed toward meeting the required 

ten (10) hours of course work: 

(1) Subjects listed in IC 25-34.1-9-11(1). 

(2) Property management, including lease agreements, accounting 

procedures, and management contracts. 

(3) Timeshares, condominiums, and cooperatives. 

(4) Industrial brokerage and leasing. 

(5) Investment real estate analysis. 

(6) Any course approved by the commission relating to real estate 

practices. 



3824; filed Aug 15, 2001, 9:05 a.m.: 25 IR 104; readopted filed Jul 19, 

2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 4-2-5 Course qualifications 



Sec. 5. (a) All courses must be instructional and contribute to 

professional competence in the practice of real estate. 

(b) The following courses do not qualify: 

(1) Real estate broker or salesperson prelicensing courses under IC 

25-34.1-5. 

(2) Examination preparation. 

(3) Sales meetings. 

(4) In-house training sessions. 

(5) Correspondence. 

(6) Motivational classes or seminars. 



3824; filed Aug 15, 2001, 9:05 a.m.: 25 IR 104; readopted filed Jul 19, 

2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 4-2-6 Renewal applications 


Affected: IC 25-1-11; IC 25-34.1 

Sec. 6. (a) An applicant for license renewal shall certify on the 

application that the applicant has complied with the continuing education 

requirements under IC 25-34.1 and this article. 

(b) The commission may request verification of any information 

submitted by the applicant and may request the applicant to submit 

evidence supporting the course credit claimed. 

(c) It is the responsibility of each licensee to retain sponsor course 

attendance verification to support the courses taken by the licensee for 

four (4) years after the end of the biennial period for which the continuing 

education is claimed. 

(d) The commission may request applicants to prove information as 

provided in subsection (c) in order to verify continuing education hours 

claimed in the application. Failure to do so shall subject a licensee to the 

sanctions provided for under IC 25-1-11. 




876070067RFA) 

876 IAC 4-2-7 Commission review of continuing education 

compliance 


Affected: IC 25-1-11; IC 25-34.1-9 

Sec. 7. (a) If, as the result of an audit or other review, the commission 

determines that continuing education hours a licensee has claimed do 

not meet the requirements of IC 25-34.1-9 and this article, the 

commission shall notify the licensee of that determination. 

(b) A licensee, who has been notified under subsection (a), may within 

thirty (30) days submit information to the commission giving all the 

substantive reasons in support of the licensee's position that an adequate 

number of hours has been obtained. 

(c) A licensee who submits false information under section 6 of this rule 

or this section shall be subject to the sanctions provided for under IC 25- 

1-11. 


10:30 a.m.: 17 IR 768; errata filed May 3, 1999, 4:10 p.m.: 22 IR 2884; 


19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 4-2-8 Inactive license 


Affected: IC 25-34.1-3-10 

Sec. 8. (a) An applicant for license renewal may request an inactive 

license under IC 25-34.1-3-10 by complying with that section and 

certifying under penalty of perjury that the applicant will not perform and 

does not intend to perform an act that requires a salesperson license or 

broker license. 

(b) Brokers who are broker salespersons and both assigned and 

unassigned salespersons may request an inactive license under 

subsection (a). By doing so, they are removed from their previous status 

and become holders of inactive licenses. 




876070067RFA) 

876 IAC 4-2-9 License activation 


Affected: IC 25-34.1-9-11 

Sec. 9. (a) In order to reactivate an inactive license at the time of 

license renewal, the licensee must have obtained all sixteen (16) hours of 

continuing education which would have been required for renewal had 

the license been active. 

(b) In order to reactivate an inactive license during a two (2) year 

licensure period, the licensee must obtain the six (6) hours of continuing 

education required by IC 25-34.1-9-11(a)(1) for that two (2) year 

licensure period and pay a ten dollar ($10) fee. 

(c) A licensee who has reactivated the licensee’s license during a two 

(2) year licensure period under subsection (b) must obtain the ten (10) 

hours of continuing education required by IC 25-34.1-9-11(a)(2) in order 

to renew the license at the end of the two (2) year licensure period. 



3824; filed Aug 15, 2001, 9:05 a.m.: 25 IR 104; filed Nov 4, 2002, 11:42 

a.m.: 26 IR 788; readopted filed Jul 19, 2007, 12:57 p.m.: 20070808-IR- 

876070067RFA) 

94

876 IAC 4-2-10 License reinstatements; continuing education 

requirements 


Affected: IC 25-34.1-3-3.1; IC 25-34.1-3-4.1 

Sec. 10. A licensee who does not obtain the required continuing 

education hours during a two (2) year licensure period does not qualify 

for renewal of the license unless the licensee has a waiver under section 

8 of this rule. However, such licensee may cure that deficiency by 

obtaining the continuing education hours in the next two (2) year 

licensure period and applying for reinstatement of the license under the 

provisions of IC 25-34.1-3-3.1(f) or IC 25-34.1-3-4.1(h). Continuing 

education hours obtained to cure a deficiency in a prior two (2) year 

licensure period shall not be double counted by also being included in the 

licensing period in progress when they are obtained. 


10:30 a.m.: 17 IR 769; errata filed Feb 3, 1998, 9:45 a.m.: 21 IR 2130; 


19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA) 

876 IAC 4-2-11 Waiver of continuing education requirements due to 

hardship 


Affected: IC 25-34.1-9-11; IC 25-34.1-9-19 

Sec. 11. (a) An applicant for license renewal who was unable to fulfill 

the continuing education requirements under IC 25-34.1-9-11 may be 

granted a waiver of the continuing education requirement by the 

commission under IC 25-34.1-9-19(1). 

(b) An applicant requesting a waiver of continuing education 

requirements under subsection (a) shall certify under penalty of perjury 

that the applicant was unable to fulfill the continuing education due to a 

hardship resulting from the following: 

(1) Service in the armed forces of the United States for one (1) year 

or more of the two (2) year licensure period. 

(2) An incapacitating illness which has prevented either part-time or 

full-time employment for at least twelve (12) months of the two (2) 

year licensure period. 

(c) Waivers from the continuing education requirement are also 

available under IC 25-34.1-9-19(2) for licensees who are affiliated with a 

principal broker for the sole purpose of making referrals to a licensed 

salesperson or broker. 

(d) An individual with a waiver is required to pay the license renewal 

fee. 

(e) An applicant who applies for waiver of the continuing education 

requirements shall request the waiver in writing. 

(f) The commission may seek verification of the applicant's request for 

waiver of continuing education requirements under this section. 




876070067RFA) 

Rule 3. Distance Learning Continuing Education 

876 IAC 4-3-1 “Distance learning continuing education” defined 



Sec. 1. “Distance learning continuing education” means education 

designed for licensed professional learners who live at a distance from 

the teaching institution or education provider. The term includes 

enrollment and study with an educational institution that provides 

organized, formal learning opportunities for professionals seeking to 

remain current on the high standards of their profession and abreast of 

the changes in their field. Presented in a sequential and logical order, the 

instruction: 

95 

(1) is offered wholly or primarily by distance study, through virtually 

any media; and 

(2) may incorporate or make use of various media formats, including, 

but not limited to: 

(A) printed materials; 

(B) communication technologies; and 

(C) Internet based delivery systems. 

(Indiana Real Estate Commission; 876 IAC 4-3-1; filed Mar 2, 2006, 4:10 

p.m.: 29 IR 2199) 

876 IAC 4-3-2 Distance learning continuing education requirements 



Sec. 2. (a) Distance learning courses must meet the requirements of 

section 3 of this rule and at least one (1) of the following: 

(1) Courses that meet the requirements of section 4 of this rule. 

(2) Courses for which the applicant provides satisfactory 

documentation that the continuing education course offered has 

been certified by a national accrediting organization. Any 

commission approval based on such certification will cease 

immediately upon notice from the accrediting organization that 

certification of the continuing education course has been 

discontinued for any reason. 

(3) Courses completed for academic credit at an accredited 

university or college. 

(b) A student must complete the distance learning continuing education 

course or courses within one (1) year of the date of enrollment. 

(c) Mandatory and nonmandatory classes may be taken through 

distance learning continuing education courses. 


p.m.: 29 IR 2199) 

876 IAC 4-3-3 Distance learning continuing education courses 



Sec. 3. The commission shall approve a distance learning continuing 

education course if the commission determines to its satisfaction the 

following: 

(1) The distance learning continuing education course serves to 

protect the public by contributing to the maintenance and 

improvement of the quality of the real estate services provided by the 

real estate licensees to the public. 

(2) An appropriate and complete application has been filed with the 

commission. 

(3) The distance learning continuing education course meets the 

content requirements as prescribed in 876 IAC 4-2-2 and 876 IAC 4- 

2-3. 

(4) The course complies with sections 5 through 7 of this rule as 

applicable. 

(5) The distance learning continuing education course meets all 

other requirements as prescribed in IC 25-34.1-9 and this article. 


p.m.: 29 IR 2199) 

876 IAC 4-3-4 Approval of distance learning continuing education 



Sec. 4. In order for a distance learning continuing education course to 

meet the requirements of section 2(a)(1) of this rule, the provider shall 

submit the following information: 

(1) Mission and objectives, as follows: 

(A) A statement that clearly defines the mission of the provider’s 

educational programs. 

(B) The specific curricular objectives for the course.

(C) A plan for periodic review of the following: 

(i) The mission statement. 

(ii) Curricular objectives. 

(2) Course design, as follows: 

(A) A course outline that clearly states the following: 

(i) The course objectives. 

(ii) The desired student outcomes. 

(B) A plan to ensure that the course content is: 

(i) updated in a timely manner; and 

(ii) distributed to: 

(AA) students who are currently enrolled; and 

(BB) future registrants. 

(C) A plan for submitting substantial changes in the course to the 

commission. Substantial changes include, but are not limited to, 


(i) Expanded or reduced course content. 

(ii) Changes in the time allotments for portions of the course. 

(iii) Changes or redirected learning objectives. 

(iv) A change of instructor. 

(v) Changes in the course delivery method. 

(D) The course disk or CD-ROM, if applicable. 

(E) A list of reference materials provided to the students. 

(F) A list of any prerequisites for the course and evidence that 

students are properly advised of the prerequisites before 

registration. 

(G) Evidence that the course is structured in a mastery learning 

format that ensures mastery accomplishment. 

(H) Evidence that the number of hours claimed is the number of 

hours it takes the average student to complete the course. This 

requirement can be met by submitting the results of the studies or 

field tests, or both, that will verify the claims. 

(3) Interactivity, as follows: 

(A) A description of how interaction is accomplished in the course. 

(B) An explanation of how: 

(i) interactivity is evaluated; and 

(ii) feedback is gathered from students; 

throughout the course. 

(4) Course delivery, as follows: 

(A) A plan that shows evidence that technical support will be 

available when needed. 

(B) Evidence that instructor-student ratios are acceptable for the 

delivery method used. 

(C) The name or names and qualifications of the instructor or 

instructors of the course, submitting their credentials, including any 

specific training for teaching, via the specified delivery method, 

and a plan for their continued professional development. 

(D) A list of remote sites if applicable. “Remote site” means one 

that receives a broadcast whether by: 

(i) satellite; or 

(ii) teleconferencing. 

(E) A list of any site facilitators and the qualifications and 

credentials for each. 

(5) Equipment and learning environment, as follows: 

(A) A list of equipment that the student will need and evidence that 

this information is made available to the student before 

registration. 

(B) An acceptable plan for dealing with equipment failures. 

(6) Student support services, as follows: 

(A) A copy of a student information package that contains all the 

necessary information about the course. This information includes, 

but is not limited to, the following: 

(i) Information about broadcasts and distance site locations. 

(ii) Faculty contact information. 

(iii) The course outline and learning objectives. 

(iv) Guidelines regarding what constitutes successful completion 

of the course. 

(v) Deadlines. 

(vi) Fees and refunds. 

(vii) Prerequisites. 

(viii) Illness policy. 

(ix) A list of required student materials, including required 

software. 

(B) An explanation of how student orientation sessions are 

accomplished. Each student is required to have an orientation 

before the student begins the course. 

(C) An acceptable list of other support services made available to 

the students. 

(7) Evaluation and assessment, as follows: 

(A) An evaluation form that solicits student feedback on the 

following: 

(i) The delivery approach. 

(ii) The equipment. 

(iii) Suggestions for class improvement. 

(iv) The student’s overall satisfaction with the course. 

An evaluation form is required to be given to every student in a 

distance learning continuing education course at the conclusion of 

the course. 

(B) A plan for verifying student identity. The provider of any 

distance learning continuing education course must have an 

acceptable plan in place that verifies that the student enrolled in 

the course is the one that completes the following: 

(i) The course. 

(ii) Any required tests. 

(8) Commitment to support, as follows: 

(A) A copy of the provider’s business plan that shows ongoing 

commitment to provide adequate financial and technical resources 

to support the distance learning continuing education course. 

(B) A statement of how long the provider has been offering 

distance learning continuing education courses. 


p.m.: 29 IR 2199) 

876 IAC 4-3-5 Distance learning continuing education courses by 

correspondence 



Sec. 5. Licensees may take distance learning continuing education 

courses by correspondence so long as the courses meet the following 

criteria: 

(1) All courses must provide a test, and the participant must score at 

least seventy-five percent (75%) to pass and receive credit for the 

course. 

(2) Tests must have multiple choice questions with at least twenty 

(20) questions per two (2) hours of instruction. The following types of 

questions are not allowed: 

(A) True or false. 

(B) Essay. 

(3) The organization and presentation of the instructional materials 

shall be in accord with sound principles of learning. 

(4) Correspondence courses must have sufficient security to assure 

against fraudulent practices. 


p.m.: 29 IR 2201) 

96

876 IAC 4-3-6 Video instruction distance learning continuing 

education 



Sec. 6. Licensees may take distance learning continuing education 

courses by video instruction so long as the courses meet the following 

criteria: 



course. 





(B) Essay. 



(4) Video instruction classes must have a monitor in the room at all 

times to assure proper attendance. 


p.m.: 29 IR 2201) 

876 IAC 4-3-7 Internet distance learning continuing education 



Sec. 7. Licensees may take continuing education courses via the 

Internet so long as the courses meet the following criteria: 



course. 





(B) Essay. 



(4) Internet courses must have sufficient security to assure against 

fraudulent practices. 


p.m.: 29 IR 2201) 

97

Indiana Real Estate Commission Laws and Regulations

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?